In the case of a collective investment scheme or an investment-linked policy, the financial adviser shall disclose:
1. The fees and charges are payable by the client.
2. Fees and charges that are payable out of the fund.
3. When such fees and charges are due and payable.

Free-look period for life policies:
The financial adviser shall disclose and explain to the client:
1. The time frame for the client to reconsider his purchase of a life policy.
2. The terms and procedures for exercising the free-look provision.
3. In the case of an investment-linked policy, 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.

In addition to the Information to Clients and Product Information Disclosure, every financial adviser and its representative providing any financial advisory service to a client concerning a dual currency
investment shall provide the client with a fair and adequate description of all material information, including the following:
1. Appropriate illustrations to show how foreign exchange rate movements could result in the principal amount being repaid in the alternate currency which could in turn result in the client receiving less than the principal amount initially invested when the amount in the alternate currency is converted back to the base currency.
2. The potential benefits of investing in the dual currency investment and for whom such investments would be appropriate.
3. Any minimum investment amount in relation to the dual currency investment.
4. The currencies from which the client can select at the time of investment.
5. The investment duration offered by the deposit-taking institution in relation to the dual currency investment.
6. A statement on whether the withdrawal of the principal or any part thereof is permitted prior to maturity. If an early withdrawal is permitted, the details on the procedures and charges applicable and where applicable, a statement to the effect that the client may incur a loss on the principal amount upon withdrawal.
7. A statement on whether the investment could be terminated by the deposit-taking institution prior to maturity. If early termination is permitted, the details on the events that would trigger such termination, how payments to the client will be determined at the time of termination, and where applicable, a statement to the effect that the client may incur a loss on the principal amount upon termination.
8. An explanation on how foreign exchange control restrictions imposed by the home country of foreign currency could impact the investment held by the client.

Excluded Investment Product means:
1. Any capital markets products that belong to a class of capital markets products listed in the Schedule to the Securities and Futures (Capital Markets Products) Regulations 2018.
2. Any life policy excluding an investment-linked policy.
3. Any unit in an ILP sub-fund.
4. Two or more products that are linked together in a stapled manner such that one product may not be transferred or otherwise dealt without any of the other product(s).

Invest the property of the ILP sub-fund only in one or more of the following:
1. Deposits as defined in section 4B(4) of the Banking Act.
2. Gold certificates, gold savings accounts, or physical gold.
3. Any investment product.
4. Any product, instrument, contract, or arrangement if the investment in such a product, instrument, contract, or arrangement is solely for the purpose of hedging or efficient portfolio management.

CRITERIA FOR THE SATISFACTION OF THE CUSTOMER KNOWLEDGE ASSESSMENT:
1. The client holds a diploma or has higher qualifications in accountancy, actuarial science, business/business administration/business management/business studies, capital markets, commerce, economics, finance, financial engineering, financial planning, computational finance, and insurance.
2. The client has a professional finance-related qualification.
3. The client has invested in the following unlisted Specified Investment Products for transactions in collective investment schemes and investment-linked life insurance policies, the client has transacted in CIS or ILPs at least 6 times in the preceding 3 years.
4. The client has invested in the following unlisted Specified Investment Products for transactions in Specified Investment Products which are neither listed nor quoted on a securities market or a futures market (excluding CIS and ILPs), the client has transacted in any Specified Investment Products which are neither listed nor quoted on a securities market or a futures market (excluding CIS and ILPs) at least 6 times in the preceding 3 years.
5. The client has a minimum of 3 consecutive years of working experience in the past 10 years in the development of, structuring, management of, sale of, trading of, research on and analysis of investment products or the provision of training in investment products. Work experience in accountancy, actuarial science, treasury or financial risk management activities will also be considered relevant experience.

CRITERIA FOR THE ASSESSMENT OF A CUSTOMER ACCOUNT REVIEW:
A client who satisfies any of the following may be assessed as possessing the knowledge or experience in derivatives for the satisfaction of the Customer Account Review in the Specified Investment Product concerned:
1. The client holds a diploma or has higher qualifications in accountancy, actuarial science, business/business administration/business management/business studies, capital markets, commerce, economics, finance, financial engineering, financial planning, computational finance, and insurance.
2. The client has a professional finance-related qualification.
3. The client has transacted in Listed Specified Investment Products at least 6 times in the preceding 3 years.
4. The client has a minimum of 3 consecutive years of working experience6 in the past 10 years, in the development of, structuring of, management of, sale of, trading of, research on or analysis of investment products7, or the provision of training in investment products. Work experience in accountancy, actuarial science, treasury, or financial risk management activities will also be considered a relevant experience.

RISK WARNING:
An overseas-listed investment product is subject to the laws and regulations of the jurisdiction it is listed in. Before you trade in an overseas-listed investment product or authorize someone else to trade for you, you should be aware of:
1. The level of investor protection and safeguards that you are afforded in the relevant foreign jurisdiction as the overseas-listed investment product would operate under a different regulatory regime.
2. The differences between the legal systems in the foreign jurisdiction and Singapore that may affect your ability to recover your funds.
3. The tax implications, currency risks, and additional transaction costs that you may have to incur.
4. The counterparty and correspondent broker risks that you are exposed to.
5. The political, economic, and social developments that influence the overseas markets you are investing in.

Where a financial adviser discloses information on the past performance of a CIS to its client, the disclosure shall:
1. Include a prominent statement that the past performance of the scheme is not necessarily indicative of the future performance of the scheme.
2. State the return on the scheme, calculated on an offer-to-bid basis illustrated in the Schedule or on a single pricing basis (taking into account any subscription fee and realization fee), and include a statement that the return is calculated on this basis.
3. Where dividends have been declared or distributions have been made by the scheme, state the return on the scheme, calculated on the assumption that all dividends and distributions are reinvested, taking into account all charges which would have been payable upon such reinvestment, and include a statement that the return is calculated on this basis.
4. Present the return on the scheme in relation to a period of not less than a year.
5. Where the total return on the scheme is presented for a period exceeding one year, state the average annual compounded return on the scheme over the same period, calculated in the manner illustrated in the Schedule.

Exceptional circumstances include, but are not limited to:
1. An investment in an initial public offer of securities which has a large impact on the return on the scheme but where such return is unlikely to be sustained.
2. High annual return for a particular year where the scheme has, or schemes with a similar investment focus have, yielded a much lower, historical longterm, average annual compounded return.

Comparison Of Past Performance Of CIS With That Of Another CIS Or An Index:
1. Such other CIS shall have investment objectives and an investment focus which are similar to those of the first-mentioned scheme.
2. The comparison shall be made on an offer-to-bid basis and that basis shall be stated in the disclosure.
3. Such an index shall be the benchmark for the scheme or an index which reflects the investment focus of the scheme.
4. The comparison with the index shall be made on an offer-to-bid basis or a bid-to-bid basis and the basis on which the comparison is made shall be stated in the disclosure.
5. Any comparison of the past performance of a CIS with that of another CIS or with an index shall be made using a common currency and where the currencies of the schemes being compared are different, conversion to the common currency must be based on prevailing exchange rates at the relevant time.

Comparison Of Past Performance Of The CIS With That Of Other Forms Of Investment:
1. Such other forms of investment shall have a risk profile which is similar to that of the scheme.
2. The comparison shall be made on an offer-to-bid basis and that basis shall be disclosed.

Past Performance Of The Manager Or Submanager:
1. Where the source of such information is a body other than the manager for the scheme, state the source.
2. Indicate the time period to which such information relates.
3. Include a prominent statement that the past performance of the manager or submanager is not necessarily indicative of its future performance.
4. The disclosure shall not present the information on the past or present performance, skills, or techniques of the manager or submanager for the CIS or of any other CIS under the management of the manager or sub-manager in a selective or biased way, such that any particular success is exaggerated or lack of success is disguised.

“Introducing activity” means:
1. Introducing any client to an introducee in relation to the provision of any type or type of financial advisory service by the introducee.
2. The activity as referred to as recording the particulars of any client and forwarding such particulars to an introducee with the client’s consent.
3. Activities 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.

Disclosure By Introducer:
The financial adviser shall require the introducer to disclose to all clients the following information that the introducer is required to disclose under Regulation 31 of the FAR:
1. That the introducer, when carrying out introducing activities, is not permitted to give advice or provide recommendations on any investment product to the client, market any collective investment scheme, or arrange any contract of insurance in respect of life policies, other than to the extent of carrying out introducing activities.
2. Whether or not the introducer is or will be remunerated by the financial adviser for carrying out introducing activities.
3. Where the introducer is or will be remunerated by the financial adviser, the amount of remuneration if so requested by the client.

Provision Of Script For Use By Introducers:
The financial adviser shall provide a script to the introducer to provide guidance to the introducer in its or his introducing activities. The financial adviser shall ensure that the script specifies:
1. The information that the introducer is required to disclose to clients in accordance with Regulation 31 of the FAR.
2. The factual information that the introducer is to provide to clients on the financial adviser.
3. The factual information on the investment products to which its or his introducing activities relate.

Maintenance Of Register Of Introducers:
The financial adviser is required to maintain a register containing the following particulars of the introducers appointed by the financial adviser, their:
1. Names
2. Places of business.
3. Contact numbers
4. Business registration numbers or, in the case of individuals, identity card numbers.
5. Dates of appointment and, where applicable, their dates of termination.

The principal shall ensure that any individual proposed to be a provisional representative is able to satisfy the following minimum entry requirements:
1. He is at least 21 years old.
2. He is in the process of relocating or has already relocated to Singapore.
3. He possesses at least three years of working experience relevant to the type of financial advisory service that he will provide as a provisional representative.
4. He possesses at least a Bachelor’s degree or equivalent, or a professional qualification.

The MAS may refuse entry of a provisional representative who fails to satisfy the entry requirements.

Validity Period:
The appointment of a provisional representative shall be valid for a period of up to three months from the date when the name of the representative is entered into the public register of representatives as a provisional representative.

A financial adviser shall report to the MAS, upon discovery of acts involving inappropriate advice, misrepresentation, or inadequate disclosure of information where it’s representative:
1. Made a recommendation to a client without due consideration to his investment objectives, financial situation, or particular needs.
2. Made a deceptive, false, or misleading statement to a client.
3. Failed to disclose to a client all material information relating to any designated investment product recommended by him.

Where misconduct has been committed for which the financial adviser required to report to the MAS, the financial adviser shall submit to the MAS the relevant information in the form as set out in Misconduct Report not later than 14 days after the discovery of the misconduct by the financial adviser. The Misconduct Report shall be lodged by the financial adviser through MASNET.

For the purpose of complying with the requirements, a financial adviser is expected to conduct internal investigations and keep proper records of the following:
1. A summary of the facts of the case.
2. Interviews with relevant parties, such as the representative, his supervisor, and the client.
3. Documentary evidence of the alleged misconduct.
4. The investigator’s assessment and recommendation.
5. Disciplinary action was taken against the representative if any.

The type of disciplinary action that a financial adviser may take against its representatives in respect of any misconduct committed depends on the severity of the case and includes, but is not limited to, any one or more of the following:
1. Suspension from providing any financial advisory service.
2. Restitution of misappropriated money.
3. Fine.
4. Formal warning.
5. Demotion.
6. Termination of the representative’s employment or arrangement (agreement) with the financial adviser.

Disclosure Of Cancellation Period
When selling an unlisted debenture, the relevant person shall disclose and explain to the client:
1. The time frame for the client to reconsider his purchase of an unlisted debenture.
2. The terms and procedures for exercising his right to cancel his purchase of the unlisted debenture.
3. That the risk of any fall in the value of the unlisted debenture during the cancellation period would have to be borne by the client.

Post-transaction refers to the period of time after (in the case of life policy):
1. The policy is issued.
2. The policy takes effect.
3. The cover has commenced.
whichever is the latest od all the above.

Specified variable income:
1. In relation to a representative, means the proportion of the variable income of the representative which is measured against the nonsales key performance indicators.
2. In relation to a supervisor means the proportion of the variable income of the supervisor measured against the performance of the representatives of the supervisor under the balanced scorecard framework.

Variable income in relation to a representative means the amount of remuneration paid or payable to the representative, whether on a periodic basis or otherwise, which varies and is directly dependent, wholly or partly, on any or all of the following:
1. The number or value of investment products in relation to which financial advisory services are provided by the representative to clients.
2. The number or value of agreements, transactions, or arrangements relating to any investment product, entered into by clients to whom the representative provided any financial advisory service.
3. The total amount of consideration, paid by clients to whom the representative provided any financial advisory service for investment products.
4. The total amount of premiums paid or payable under life policies, paid by clients to whom the representative provided any financial advisory service.

A financial adviser shall have an ISA Unit comprising persons who:
1. Are independent of the financial advisory services unit of the financial adviser.
2. Do not directly or indirectly supervise or manage the conduct and performance of any representative or class of representatives of the financial adviser.
3. Are competent in reviewing and assessing the quality of the financial advisory services provided by the representatives of the financial adviser, against the non-sales KPIs, and determining if infractions have been committed by the representatives.

A financial adviser shall require the ISA Unit to submit reports on its audit of the quality of financial advisory services provided in every calendar quarter by the representatives of the financial adviser, to either:
1. The board and chief executive officer of the financial adviser.
2. A business function or unit of the financial adviser, which is independent of the financial advisory services unit of the financial adviser, by the end of two calendar quarters immediately subsequent to the measurement quarter.