Undertaking Of Responsibilities For Provisional Representatives:
Regulation 4A(4) of the FAR provides that for the purpose of Section 23F(1)(c) of the FAA, a principal shall undertake all of the following responsibilities in relation to its provisional representatives:
1. To put in place measures to properly supervise the activities and conduct of the representative, including measures to ensure that all obligations assumed and liabilities incurred by him are properly fulfilled, whether actual or contingent and howsoever arising, in relation to the provision of any financial advisory service.
2. To put in place measures, including proper training, to ensure that the representative understands and complies with all Singapore laws that are relevant to the financial advisory service provided by him.
3. To ensure that the representative is accompanied at all times by an authorized person (referred to in Regulation 4A(5) of the FAR as the appointed representative, director or officer of the principal) when meeting any client or member of the public in the course of providing any financial advisory service.
4. To ensure that the representative sends concurrently to any of the authorized persons all electronic mail that he sends to any client or member of the public in the course of providing any financial advisory service.
5. To ensure that the representative does not communicate by telephone with any client or member of the public when providing any financial advisory service, other than by telephone conference in the presence of any of the authorized persons.

Conditions For Refusal To Enter Details In The Public Register:
Under Section 23J(1)(a) to (f) of the FAA, the MAS may refuse to enter the name and other particulars of an individual in the public register of representatives, or refuse to enter an additional type of financial advisory service for an appointed representative in that register, or revoke the status of an individual as an appointed or provisional representative if:
1. Being a representative, he fails or ceases to act as a representative in respect of all of the types of financial advisory services that were notified to the MAS as services which he is appointed to provide as a representative.
2. He or his principal has not provided the MAS with such information or documents as the MAS may require.
3. He is an undischarged bankrupt, whether in Singapore or elsewhere.
4. Execution against him in respect of a judgement debt has been returned unsatisfied in whole or in part.
5. He has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation.
6. He has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly or has been convicted of an offence under the FAA.

OBLIGATION TO DISCLOSE PRODUCT INFORMATION TO CLIENTS:
Section 25(1) of the FAA read together with Section 23(4) and Section 37 of the FAA provides that a licensed financial adviser shall disclose, to every client and prospective client, all material information relating to any designated investment product that the licensed financial adviser recommends to such person, including:
1. The terms and conditions of the designated investment product.
2. The benefits to be, or likely to be, derived from the designated investment product and the risks that may arise from the designated investment product.
3. The premiums, costs, expenses, fees, or other charges that may be imposed in respect of the designated investment product.
4. Where the designated investment product is a unit in a collective investment scheme, the name of the manager of the scheme, and the relationship between the licensed financial adviser and the manager.
5. Where the designated investment product is a life policy, the name of the licensed insurer under the life policy, and the relationship between the licensed financial adviser and the insurer.

Conditions For Withdrawal:
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:
1. 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.
2. Any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance.
3. Any investment by way of deposits placed with any bank licensed under the Banking Act.
4. Any repayment of money that were paid into the account in error.

Proposed Contract Of Insurance
Section 34(1) of the FAA provides that no licensed financial adviser shall, with intent to deceive, in relation to a proposed contract of insurance:
1. Write on a form, being a form that is given or sent to an insurer, any matter that is material to the contract and is false or misleading in a material particular.
2. Omit to disclose to the insurer any matter that is material to the proposed contract.
3. Advise or induce the intending insured to write on a form, being a form that is given or sent to the insurer, any matter that is false or misleading in a material particular.
4. Advise or induce the intending insured to omit to disclose to the insurer any matter that is material to the proposed contract.

Regulation 18(1) of the FAR states that no licensed financial adviser shall grant any unsecured advance, unsecured loan, or unsecured credit facility:
1. To a director of the licensed financial adviser who is not an employee of the licensed financial adviser.
2. To any other officer or an employee of the licensed financial adviser (including a director who is its employee) or any of its representatives.

”Market Value”, in relation to assets which are specified products listed for quotation, or quoted, on an approved exchange or an overseas exchange, means:
1. The last transacted price of the specified products traded on the approved exchange or overseas exchange on the immediately preceding business day.
2. If there was no trading in the specified products on the immediately preceding business day, the lower of the last transacted price and last bid price of the specified products in the immediately preceding 30 days.
3. If there was no trading in the specified products in the immediately preceding 30 days the value of the specified products as estimated by the exchange.
4. If there was no trading in the specified products in the immediately preceding 30 days in the absence of such a value, zero value or any other value as approved by the Authority before the grant of the advance, loan, or credit facility, or provision of those assets as fresh security, as the case may be.

“Unsecured advance”, “unsecured loan” or “unsecured credit facility” includes:
1. Any advance or loan made without security.
2. Any advance, loan or credit facility made with security, where the advance, loan or credit facility or any amount due and owing thereunder at any time exceeds the market value of the assets constituting that security.
3. Any advance, loan or credit facility made with security, where the advance, loan or credit facility or any amount due and owing thereunder at any time exceeds where the MAS is satisfied that there is no established market value for those assets, on the basis of a valuation of those assets as approved by the MAS and notified to the licensed financial adviser, before the grant of the advance, loan or credit facility.
4. Any guarantee or performance bond entered into by the licensed financial adviser, or the provision of any security by the licensed financial adviser, in connection with any advance, loan or credit facility made by another party to any of its officers, employees, or representatives.
5. Any credit facility without security, whether it has been drawn-down or not.

Criteria To Be Appointed As Chief Executive Officer Or Director:
1. Whether the licensed financial adviser has provided the MAS with such information relating to the appointee or director as the MAS may require.
2. Whether the appointee or director is an undischarged bankrupt in Singapore or elsewhere.
3. Whether execution against the appointee or director in respect of a judgment debt has been returned unsatisfied in whole or in part.
4. Whether the appointee or director has, in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation.
5. Whether the appointee or director has been convicted, whether in Singapore or elsewhere, of an offense involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly.
6. Whether the appointee or director has been convicted of an offense under the FAA.
7. The educational or other qualification, experience, or expertise of the appointee, having regard to the nature of the duties he is to perform as a chief executive officer, director, or executive director of the licensed financial adviser.

Duties Of Chief Executive Officer And Director:
Regulations 14 of the FAR states that a licensed financial adviser shall commensurate with the nature, scale and complexity of its business:
1. Implement and ensure compliance with, effective written policies on all operational areas of the financial adviser, including the financial adviser’s financial policies, and accounting and internal controls.
2. Put in place compliance function and arrangements including specifying the roles and responsibilities of officers and employees of the financial adviser in helping to ensure its compliance with all
applicable laws, codes of conduct and standards of good practice in order to protect investors and reduce its risk of incurring legal or regulatory sanctions that may be imposed by the MAS or any other
public authority, financial loss, and reputational damage.
3. Identify, address and monitor the risks associated with the business activities of the financial adviser.
4. Ensure that the business activities of the financial adviser are subject to compliance checks.
5. Set out in writing the limits of the discretionary powers of each officer, committee, sub-committee or other group of persons of the financial adviser empowered to commit the financial adviser to any financial undertaking or to expose the financial adviser to any reputational risk.
6. Keep a written record of the steps taken by the financial adviser to monitor compliance with its policies, its accounting and operating procedures, and the limits on discretionary powers.
7. Ensure the accuracy, correctness and completeness of any report, return or statement submitted by the financial adviser to the MAS.
8. Ensure effective controls and segregation of duties to mitigate potential conflicts of interest that may arise from the operations of the financial adviser.

POWER OF AUTHORITY TO ISSUE WRITTEN DIRECTIONS:
Section 58(1) of the FAA provides that the MAS may if it thinks it necessary or expedient in the interests of the public or a section of the public or for the protection of investors, issue written directions, either of a general or specific nature, to:
1. Any licensed financial adviser.
2. Any person exempt under the FAA.
3. Any representative.
4. Any supervisor of a financial adviser.

POWER OF AUTHORITY TO PUBLISH INFORMATION
Section 67 of the FAA provides that the MAS may, from time to time and in such form or manner as it considers appropriate, publish information relating to all or any of the following:
1. The lapsing, revocation or suspension of the licence of any person under Section 19 of the FAA.
2. The removal of any officer under Section 57 of the FAA.
3. The making of any prohibition order against any person under Section 59 of the FAA.
4. The acceptance by any person of an offer to compound an offence under Section 89 of the FAA.
5. The reprimand of any person under Section 97 of the FAA.
6. The revocation or withdrawal of any exemption granted under the FAA.
7. The conviction of any person for any offence under the FAA.
8. The conviction of any licensed financial adviser for any offense, whether in Singapore or elsewhere.
9. Any other action as may have been taken by the MAS against any person under the FAA.

Under Section 83(5) of the FAA, an “officer”, in relation to a body corporate, means a director, member of the committee of management, chief executive, manager, secretary, or other similar officers of the body, and includes a person purporting to act in any such capacity. An “officer”, in relation to an unincorporated association (other than a partnership), means the president, secretary, and members of the committee of the association or a person holding a position analogous to that of the president, secretary, or members of a committee, and includes a person purporting to act in any such capacity.

OFFENCE BY OFFICERS
In addition to the penalty of the body corporate, Section 84(1) of the FAA also stipulates that any officer of a licensed financial adviser who fails to take all reasonable steps to secure:
1. Compliance with any provision of the FAA.
2. The accuracy and correctness of any statement submitted to the MAS.
Such other people as may be required under the FAA shall be guilty of an offense and shall be liable on conviction to a fine not exceeding S$100,000 or imprisonment for a term not exceeding two years or both.

A financial adviser that is involved in making recommendations on investment products to clients shall comply with the requirements set out in the “Notice On Recommendations On Investment Products [Notice No: FAA-N16]” in relation to the following aspects:
1. Know your client.
2. Needs analysis.
3. Documentation and record-keeping.

In order for a financial adviser to make a recommendation that takes into account a client’s investment objectives, financial situation and particular needs, the financial adviser, except in the circumstances provided in paragraph 11A, shall take reasonable steps to collect and document the following information from the client:
1. The financial objectives of the client.
2. The risk tolerance of the client.
3. The employment status of the client.
4. The financial situation of the client, including assets, liabilities, cash flow, and income.
5. The source and amount of the client’s regular income.
6. The financial commitments of the client.
7. The current investment portfolio of the client, including any life policy.
8. Whether the amount to be invested is a substantial portion of the client’s assets.
9. For any recommendation made in respect of life policies, the number of dependants of the client and the extent and duration of financial support required for each of the dependants.

No financial adviser shall make a recommendation to a client to transact in a Listed Specified Investment Product after 3 years has expired from the date of the conduct of the Customer Account Review for the client concerned, until and unless:
1. The financial adviser has checked and is satisfied that the client has transacted in a Listed Specified Investment Product more than once during the preceding 3-year period.
2. The financial adviser has checked that in every subsequent 3-year period, the client has transacted in a Listed Specified Investment Product more than once during that 3-year period.
3. The financial adviser has conducted a new Customer Account Review for the client concerned or the financial adviser has relied on a new Customer Account Review conducted by a third party for the client.

Documentation and Record-Keeping:
The financial adviser shall make reasonable efforts to document the basis for the recommendation and such documentation shall include the following:
1. The client’s statement of his investment objectives, financial situation, and particular needs.
2. The financial adviser’s reasonable basis for making the recommendation to the client having regard to the information obtained from the client.
3. The financial adviser’s assessment of the disadvantages of the investment product based on the circumstances of the client.

A financial adviser shall furnish the following documents to a client when making a recommendation:
1. In the case of a collective investment scheme or a debenture, a copy of the prospectus or profile statement and product highlights sheet (if applicable) issued in respect of the collective investment scheme or the debenture, or any other offer document, or both (as the case may be), as may be prescribed by the relevant laws, including:
(i) a supplementary prospectus or supplementary profile statement issued in respect of the collective investment scheme or the debenture.
(ii) a replacement prospectus or replacement profile statement issued in respect of the collective investment scheme or the debenture.
2. In the case of a life policy (including a bundled product), a copy of the cover page, product summary, policy illustration, bundled product disclosure document, and product highlights sheet in respect of that policy, as prepared and provided by the direct life insurer (where such documents are available in respect of that policy).

A financial adviser shall document every Customer Knowledge Assessment and every Customer Account Review conducted for each client. Such documentation shall include the following:
1. Information collected from a client on his educational qualification, work experience, and investment experience.
2. An assessment of the client’s knowledge and experience in derivatives or unlisted Specified Investment Products, as the case may be.
3. The outcome of the Customer Knowledge Assessment or the Customer Account Review, as the case may be.
4. The approval of its senior management or designated person for the financial adviser to proceed with the client’s request, where applicable.

A financial adviser shall provide the risk warning statement to its client before making a recommendation on any Overseas- Listed Investment Product where it is the first time on or after 8 October 2018 that the financial adviser makes such recommendation to the client.

Where a financial adviser makes a recommendation on an OverseasListed Investment Product to its client, the financial adviser may implement a system to identify and determine that the Overseas-Listed Investment Product is to be classified as an Excluded Investment Product.

A financial adviser shall not make a recommendation to a client to switch from one designated investment product (referred to as “original product”) to another designated investment product (referred to as “replacement product”) in a manner that would be detrimental to the client. In considering whether a switch is detrimental, the Authority may have regard to a number of factors, including:
1. Whether the client suffers any penalty for terminating the original product.
2. Whether the client will incur any transaction cost without gaining any real benefit from such a switch.
3. Whether the replacement product confers a lower level of benefit at a higher cost or same cost to the client, or the same level of benefit at a higher cost.
4. Whether the replacement product is less suitable for the client.

The general standards which a financial adviser is expected to meet in all product information disclosures and information given to clients are as follows:
(a) Clear:
1. Information disclosed to clients in any advertisement or publicity material in any media should be presented in plain language, and in a manner that is easy for the client to understand.
2. Jargon or technical terms used should be clearly explained to clients.
(b) Adequate:
1. Information disclosed to clients should meet regulatory requirements and accord with industry best practices. In addition, the information provided should be sufficient to help clients make an informed decision.
2. Warnings and important information such as the nature and objective of the product, risks of the product, fees and charges, and contractual rights and obligations of clients, should be prominently presented and clearly explained.
(c) Not False or Misleading:
1. Information disclosed to clients should not be ambiguous in language or presentation.
2. Information relating to investment products should be disclosed in an objective and unbiased manner.
3. Where an opinion is expressed, there should be a reasonable basis for expressing the opinion and it should be unambiguously stated that it is a statement of opinion.
4. Documents to be given to clients should be kept up-to-date and reviewed at least annually.

The general standards which are not False or Misleading given by a financial adviser are expected to meet in all product information disclosures and information given to clients are as follows:
1. Information disclosed to clients should not be ambiguous in language or presentation.
2. Information relating to investment products should be disclosed in an objective and unbiased manner.
3. Where an opinion is expressed, there should be a reasonable basis for expressing the opinion and it should be unambiguously stated that it is a statement of opinion.
4. Documents to be given to clients should be kept up-to-date and reviewed at least annually.

General Information About The Financial Adviser And Status Of A Representative:
A financial adviser shall disclose the following, in writing, to a client:
1. Its business name, business address, and telephone number.
2. The type or types of financial advisory service that it is authorized to provide under the Act.
3. The type or types of investment products in respect of which it is authorized to provide financial advisory service.
4. Any other type of activity carried out by the financial adviser which is not regulated by the Authority if any.
5. The product providers whose products the financial adviser:
(i) procures on behalf of its client;
(ii) recommends or markets to its clients; or
(iii) markets to its client on behalf of the product providers.

Remuneration Of The Financial Adviser:
Where the amount of remuneration, commission, fee, or benefit is not quantifiable, the financial adviser shall furnish its client with a description of how it will be remunerated.

Nature and objective of the product:
The financial adviser shall disclose and explain to the client the nature and objective of the product, including:
1. Whether the product is a life policy or units in a collective investment scheme.
2. Whether the product is meant for protection, savings, or investment.
3. The investment strategy of the product.

Client profile:
The financial adviser shall disclose and explain to the client the intended client profile of the product, including:
1. The product’s intended investment horizon.
2. The ease of converting the investment in the product to cash.
3. The expected level of risk tolerance of the client.

Pricing of the product:
In the case of a collective investment scheme and an investment-linked policy, the financial adviser shall disclose and explain to the client whether the units will be priced on a historical or forward basis. The financial adviser shall also disclose and explain to the client:
1. In the case of a dual pricing scheme, that the bid and offer prices are the selling and buying prices respectively.
2. In the case of a single pricing scheme, that the single price does not take into account subscription or realization fees which may be separately payable by the client upon purchase or redemption respectively.