The practice is meant to guide specified Institutions of persons or administrative procedures related to such as licensing

Regulation should set standard baseline requirements of board application and provide for the exercise to supervisory judgment to set high standards for commit exception when directed by particular circumstances of a financial institution.

For the purposes of ongoing monitoring, a financial adviser shall put in place and implement adequate systems and processes, commensurate with the size and complexity of the financial adviser,
to:
(a) monitor its business relations with customers; and
(b) detect and report suspicious, complex, unusually large or unusual patterns of transactions. A financial adviser shall, to the extent possible, inquire into the background and purpose of the transactions in the third paragraph of this section and document its findings with a view to making this information available to the relevant authorities should the need arise.
A financial adviser shall ensure that the CDD data, documents and information obtained in respect of customers, natural persons appointed to act on behalf of the customers, connected parties of the customers and beneficial owners of the customers, are relevant and kept up-to-date by undertaking reviews of existing CDD data, documents and information, particularly for higher-risk categories of customers.

The FAA provides for two classes of representatives – appointed and provisional.

The MAS may take into account a failure to comply with these standards in considering whether to approve a new product, revoke the approval for a product & issue directions for the withdrawal of a product.

The key changes to the Code include:
(a) Strengthening Core Investment Requirements for Schemes
(b) Introducing New Guidelines for Specialised Fund Categories
(c) Other Safeguards to Enhance Investor Protection

The responsibilities of the AML/CFT compliance officer should include:
(a) carrying out, or overseeing the carrying out of, ongoing monitoring of business relations and a sample review of accounts for compliance with the Notice and these Guidelines;
(b) promoting compliance with the Notice and these Guidelines, as well as MAS Regulations issued under Section 27A of the MAS Act, and taking overall charge of all AML/CFT matters within the organization;
(c) informing employees, officers, and representatives promptly of regulatory changes;
(d) ensuring a speedy and appropriate reaction to any matter in which ML/TF is suspected;
(e) reporting, or overseeing the reporting of, suspicious transactions;
(f) advising and training employees, officers and representatives on developing and implementing internal policies, procedures, and controls on AML/CFT

Stages of money laundering include;
(a) Placement – The physical or financial disposal of the benefits derived from criminal conduct.
(b) Layering – The separation of these benefits from their original source by creating layers of financial transactions designed to disguise the ultimate source and transfer of these benefits.
(c) Integration – The provision of apparent legitimacy to the benefits derived from criminal conduct. If the layering process succeeds, the integration schemes place the laundered funds back into the economy so that they re-enter the financial system appearing to be legitimate funds.

The board ML/TF risk that the financial adviser should consider includes;
I.Target clients markets and segments
II.the profile and number of customers distinguished as a higher risk
III.the volume sizes of customers exchanges
IV.the volume and sizes of its customer’s finances move

The undertaking of the existing procedure includes confirmation of the addresses of the customers through an exchange of correspondence or other appropriate methods

A serious breach of financial advisors internal policy or code of conduct which would render the representative liable to demotion, suspension, or termination of representatives employment or arrangement with a financial advisor.

Employers, who send low wage workers for training can claim higher absentee payroll up to 95% to cover the salaries of low wage workers when they are away for training.

A financial advisor is expected to conduct internal investigations and keep proper records of a summary of facts in the cases, interviews with relevant parties, documentary evidence of alleged misconduct, the investigators’ assessment and recommendation & disciplinary action taken against the representatives.

The IMAS Standards of Professional Conduct cover the following areas:
(a) investment manager
(b) business conduct
(c) client relations
(d) investment conduct

In respect of ILP sub-funds which invest all or significantly all of the assets in another collective investment scheme, within T+7 business days.

Some of the following information is not used for verifying a customer who applies to the FA to establish business relations:
I.Full Name
II.Permanent Mailing Address
III.Identification of number

Regulation 20(3) of the FAR states that no financial adviser shall withdraw money from a bank account maintained by it, unless for any of the following circumstances:
(a) any payment to or for a person entitled to receive payment of the money, including itself in so far as it is entitled to receive payment for itself;
(b) any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance;
(c) any investment by way of deposits placed with any bank licensed under the Banking Act (Cap. 19); or
(d) any repayment of money that was paid into the account in error.

Under the new measures, the intermediary must conduct a Customer Knowledge Assessment to assess whether a customer has the relevant knowledge or experience to understand the risks and features of an unlisted SIP. In the case of listed SIPs, the intermediary must conduct a Customer Account Review to ascertain whether the customer has the relevant knowledge or experience to understand the risks and features of derivatives, before approving the customer’s account to trade such products.

When there is any change in any interest in securities the relevant person required to enter the particulars of the change in the register within 7 days from the date of the change and retain the entry for five years.

Section 27 Act requires licensed financial advisers to have a reasonable basis for any recommendation made, with respect to any investment product, to a person who may reasonably be expected to rely on the recommendation

The financial adviser shall disclose and explain to the client:
(a) the time frame for the client to reconsider his purchase of a life policy;
(b) the terms and procedures for exercising the free-look provision; and
(c) in the case of an investment-linked policy, that the risk of any fall in the value of the underlying investment during the free-look period may have to be borne by the client.

Where the unit trust provides for a cancellation period, the financial adviser shall disclose and explain to the client:
(a) the time frame for the client to reconsider his purchase of a unit trust;
(b) the terms and procedures for exercising his right to cancel his purchase of units in the scheme; and
(c) that the risk of any fall in the value of the units during the cancellation period would have to be borne by the client.

Notice No: FAA-N11 applies to any licensed or exempt financial adviser or its representative, who advises on any dual currency investment, except:
(a) where advice is given to an accredited investor, expert investor or institutional investor
(b) where advice is given to a high net worth individual as defined in the Guidelines on Exemption for Specialised
Units Serving High Net Worth Individuals
(c) where advice is given to any person outside Singapore

In case of a dual currency investment, what all information should be provided by a financial adviser?
A description of the nature and mechanics of the dual currency investment.
Any minimum investment amount in relation to the dual currency investment.
The currencies from which the client can select at the time of investment.
The investment duration offered by the deposit-taking institution in relation to the dual currency investment.

I. Introducing any client to an introducee in relation to the provision of any type or types of financial advisory service by the introducee.
II. Recording the particulars of any client and forwarding such particulars to an introducee with the client’s consent.
III. Providing factual information to any client on investment products.

Providing factual information to any client on investment products, including (where applicable) information on the name of the investment product, the product provider, the date on which the product is launched, the minimum subscription amount, and any fee or charge which may be imposed.

I. A financial adviser shall ensure that none of its employees or representatives enter into any arrangement with an introducer to carry out introducing activities.
II. A financial adviser which engages the services of an introducer shall institute adequate control systems and procedures to ensure the proper conduct of the introducer.
III. It should take reasonable steps not to appoint an introducer carrying out of introducing activities is, if the introducer is a corporation, its sole business activity.
IV. It should take reasonable steps not to appoint an introducer carrying out of introducing activities is, if the introducer is an individual, his full-time occupation.

Following particulars will be included:
Names
Places of business
Contract Numbers
Business registration numbers

Exempt persons are exempted from the requirement to hold an FA license in acting, whether directly or indirectly, as a financial adviser in giving advice in Singapore, either directly or through publications or writings, or by issuing or promulgating research analyses or research reports, concerning any investment product (other than life policies), to not more than 30 accredited investors on any occasion.