The principal objectives of the Monetary Authority Of Singapore (MAS) are:
1. To act as the central bank of Singapore, including the conduct of monetary policy, the issuance of currency, the oversight of payment systems, and serving as the banker to and financial agent of the Government.
2. To conduct integrated supervision of financial services and financial stability surveillance.
3. To manage the official foreign reserves of Singapore.
4. To develop Singapore as an international financial centre.

Practice Notes:
Practice Notes are meant to guide specified institutions or persons on administrative procedures relating to, such as licensing, reporting, and compliance matters. They do not have any legal effect unless a procedure stated in the practice note is also required by an Act or regulation.

Instruments Issued By The MAS which do not have any legal effect:
1. Practice Notes
2. Circulars
3. Guidelines

Tenets Of Effective Regulation:
Tenet 1: “Outcome Focused” commits the MAS to uphold sound regulation of a high standard, but also acknowledges that there is no one way to do this. Tenet 1 flows from all four of the broad principles of financial supervision – “Risk-Focused”, “Stakeholder-Reliant”, “disclosure-based” and “Supportive of Enterprise”.

Tenets Of Effective Regulation
Tenet 2: “Shared Responsibility” describes the MAS’ belief that regulation alone is insufficient, and that in many instances, regulatory outcomes can be more effectively achieved with the MAS, financial institutions, investors and consumers, each taking on specific responsibilities and shared ownership of supervisory objectives and outcomes.

The SGX regulatory functions include:
(a) Issuer Regulation – to review listings applications, monitor ongoing compliance with listing requirements, and provide support on regulatory issues to listed companies.
(b) Member Supervision – to process membership applications and permits, monitor members’ compliance with the SGX rules and provide support on regulatory issues to members, and investigate complaints concerning members.
(c) Market Surveillance – to maintain surveillance of all trading activities.
(d) Enforcement – to investigate suspected infractions and complaints, and perform necessary disciplinary follow-up.
(e) Risk Management – to monitor and manage the SGX’s counterparty risk exposure to clearing members for the SGX trades.
(f) Catalist Regulation – to promote a high standard of disclosure and corporate governance by listed companies.
(g) Clearing Risk – to develop and enhance the risk frameworks for product and service offerings in the SGX.

The main objectives of IMAS are to:
1. Promote professionalism and exemplary practice among its members in their conduct of the investment management business.
2. Provide a forum for its members to discuss issues or matters relating to the investment management industry.
3. Represent its members collectively in discussions with, or assist any member to make any representation or recommendation to, any of its government, government representative, supervisory authority, whether local or foreign, which are concerned with the investment management industry.
4. Promote the education of the investing public on investments and the investment management industry.
5. Improve professionalism and standards of research and fund management expertise in Singapore.
6. Promote the investment and fund management industry.

The IMAS Standards of Professional Conduct cover the following areas:
1. Investment manager
2. Business conduct
3. Client relations
4. Investment conduct

FINANCIAL ADVISERS REGULATIONS (FAR)
On 1 October 2002, the Financial Advisers Regulations (“FAR”) came into effect as subsidiary legislation. It is prescribed by the MAS to give effect to the provisions of the FAA and sets out the rules on the application of the FAA. It provides for, among other things, exemptions from the requirements relating to licensing, approval or registration requirements, the application of the provisions under the FAA, and the revocation or variation of any condition or restriction under the FAA.

Section 23(1) of the FAA provides that the following persons shall be exempted from holding a financial adviser’s license to act as a financial adviser in Singapore in respect of any financial advisory service:
1. A bank licensed under the Banking Act (Cap. 19).
2. A merchant bank approved as a financial institution and approved to carry on a business of providing any financial advisory service under the Monetary Authority of Singapore Act (Cap. 186).
3. A company or co-operative society licensed under the Insurance Act (Cap. 142).
4. A holder of a capital markets services license under the Securities and Futures Act (Cap. 289).
5. A finance company that has been granted an exemption from Section 25(2) of the Finance Companies Act (Cap. 108) to carry on the business of providing any financial advisory service.
6. An approved exchange, a recognized market operator, or an approved holding company, in respect of the provision of any financial advisory service that is solely incidental to its operation of an organized market, or to its performance as an approved holding company, as the case may be.
7. Such other persons or classes of persons as may be prescribed.

Excluded Financial Advisers (First Schedule Of The FAA):
Any person who is a proprietor of a newspaper and holder of a permit under the Newspaper and Printing Presses Act (Cap. 206), where:
1. The newspaper is distributed generally to the public in Singapore.
2. Any advice is given, or analysis or report issued or promulgated is given, issued or promulgated only through that newspaper.
3. That person receives no commission or other consideration, apart from any fee received from subscription to or purchase of the newspaper, for giving the advice, or for issuing or promulgating the analysis or report.
4. The advice is given, or the analysis or report is issued or promulgated, solely as incidental to the conduct of that person’s business as a newspaper proprietor.

Excluded Financial Advisers (First Schedule Of The FAA)
Any person who owns operates or provides an information service through an electronic, or a broadcasting or telecommunications medium, where:
1. The service is generally available to the public in Singapore.
2. Any advice is given, or analysis or report issued or promulgated is given, issued or promulgated only through that service.
3. That person receives no commission or other consideration, apart from any fee received from subscription to the service, for giving the advice, or for issuing or promulgating the analysis or report.
4. The advice is given, or the analysis or report is issued or promulgated, solely as incidental to that person’s ownership, operation, or provision of that service.

Excluded Products:
The following products are excluded from the definition of investment products:
1. General insurance policies.
2. Deposit-taking products
3. Loans and mortgages.

General insurance policies (as opposed to life insurance policies) are not considered investment products as they are consumption-based. Deposit-taking products offered by banks are excluded as such products are at the low end of the risk spectrum and are well understood. Loans and mortgages do not have any investment element and relate more to liability management.

In assessing an application for a financial adviser’s license, the MAS takes into consideration the following factors:
1. Track record, management expertise, and financial soundness of the applicant and its parent company or major shareholders.
2. Ability to meet the minimum financial requirements and professional indemnity insurance requirements as prescribed under the FAA.
3. Strength of internal compliance systems.
4. Business plans and projections.
5. Fitness and propriety.

Section 9(1) of the FAA states that the MAS may refuse an application for the grant of a financial adviser’s license if:
1. The applicant is not a corporation.
2. The applicant is unable to meet or continue to meet such minimum financial requirements or such other requirements as the MAS may prescribe, either generally or specifically.
3. The applicant does not have in force a professional indemnity insurance policy, the cover of which is consistent with such limit and deductible requirements as may be prescribed, or any other measure as may be approved by the MAS in lieu of a professional indemnity insurance policy.
4. The applicant has not furnished the MAS with such information or documents as may be required under section 8(2) of the FAA, or such other information or documents relating to it or any person employed by or associated with it for the purposes of its business or relating to any circumstance likely to affect its manner of conducting business as may be required by the MAS.
5. Any information or document that is furnished by the applicant to the MAS is false or misleading.
6. The applicant or any of its substantial shareholders is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere.
7. A receiver, receiver, and manager, judicial manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the applicant or any of its substantial shareholders.
8. The applicant or any of its substantial shareholders has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation.
9. Execution against the applicant or any of its substantial shareholders in respect of a judgment debt has been returned unsatisfied in whole or in part.

Section 9(4) of the FAA stipulates that the MAS may refuse an application for the grant of a financial adviser’s licence on any of the following grounds without giving the applicant an opportunity to be heard:
1. The applicant is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere.
2. A receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, for or in respect of any property of the applicant.
3. A prohibition order under Section 59 of the FAA has been made by the MAS, and remains in force, against the applicant.
4. The applicant has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.

Any licensed financial adviser which contravenes the minimum financial requirements shall be guilty of an offense and shall be liable on conviction to a fine not exceeding S$50,000.

EXEMPT PERSONS (THIRD SCHEDULE OF THE FAA)
1. The FAA also provides for a category of persons to be exempted from holding a financial adviser’s licence. This group of persons called “exempt persons”.
2. In the case of an exempt fund manager who is also an exempt financial adviser, the total number of qualified investors and accredited investors served should not exceed 30 in total.

An “accredited investor” as stated in an individual whose net personal assets exceed S$2 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount.

An “accredited investor” as stated:
A corporation with net assets exceeding S$10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by:
1. The most recent audited balance-sheet of the corporation.
2. Where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months.

Applicability Of RNF Regime
The RNF Regime is applicable to individuals carrying out financial advisory activities as representatives of:
1. Licensed financial advisers.
2. Financial advisers which are exempted by the FAA from having to apply for a license (this category includes banks, merchant banks, finance companies, insurance companies, insurance brokers registered under the Insurance Act, and holders of a capital markets services license under the Securities and Futures Act (Cap 289).

Provisional Representatives:
They are persons who meet the entry requirements, but who have not yet passed the relevant examinations. As a policy, they are given a grace period of three months to pass the requisite examinations. This category of representatives was introduced to accommodate the relocation of experienced individuals currently licensed in an overseas jurisdiction.

Individuals must fulfill the following requirements before they can be an appointed representative:
1. Be at least 21 years old.
2. Satisfy the minimum academic qualification and examination requirements as prescribed in the Notice on Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers.
3. Satisfy the fit and proper criteria set out in the Guidelines on Fit and Proper Criteria issued by the MAS.
4. Any other criteria stipulated by the MAS.

Criteria To Be An Appointed Representative:
1. Who satisfies such entry and examination requirements for that type of financial advisory service, the fact of which has been notified to the MAS either in the document lodged under the FAA.
2. Whose name is entered in the public register of representatives as an appointed representative.
3. Whose status as an appointed representative has not currently been revoked or suspended and who has not currently been prohibited by the MAS from providing that type of financial advisory service.
4. Whose entry in the public register of representatives indicates that he is appointed to provide that type of financial advisory service and does not indicate that he has ceased to be so.
5. Whose principal is licensed to provide that type of financial advisory service.

Cessation Of Status Of Appointed Representative
Section 23C(4) of the FAA states that an individual shall cease to be an appointed representative in respect of any type of financial advisory service on the date:
1. He ceases to be the principal’s representative or to provide that type of financial advisory service on behalf of the principal, the fact of which has been notified to the MAS.
2. His principal ceases to provide that type of financial advisory service.
3. The licence of his principal is revoked or lapses or prohibition order under Section 59 of the FAA is made against his principal prohibiting it from providing that type of financial advisory service.
4. The individual dies.
5. Of the occurrence of such other circumstances as the MAS may prescribe.

Criteria To Be Appointed As A Provisional Representative:
Section 23D(1) of the FAA provides that a provisional representative in respect of a type of financial advisory service is an individual:
1. Who satisfies the entry requirements.
2. Who intends to undergo an examination in order to satisfy the examination requirements.
3. Whose name is entered in the public register of representatives as a provisional representative.
4. Whose status as a provisional representative has not currently been revoked or suspended and who has not currently been prohibited by the MAS from providing that type of financial advisory service.
5. Whose entry in the public register of representatives indicates that he is appointed to provide that type of financial advisory service and does not indicate that he has ceased to be so.

Cessation Of Status Of Provisional Representative:
Section 23D(3) of the FAA provides that a provisional representative shall immediately cease to be one:
1. Upon the expiry of the period of time as specified by the MAS.
2. If he fails to comply with any condition or restriction imposed on him under Section 23K of the FAA.
3. Upon his principal informing the MAS of the satisfaction of the examination requirements as specified for that or any other type of financial advisory service.
4. On the occurrence of such other circumstances, as the MAS may prescribe.

Section 23D(5) of the FAA read with Regulation 4B(2) of the FAR provides that, where a provisional representative has satisfied the examination requirements, his principal shall inform the MAS of this fact in Form 3D and within the three month grace period.

Documents To Be Lodged With The MAS:
Section 23F(1) of the FAA provides that a principal who desires to appoint an individual as an appointed or provisional representative in respect of any type of financial advisory service shall lodge the following documents with the MAS in such form (Forms 3A and 3B) and manner as the MAS may prescribe:
1. A notice of intent by the principal to appoint the individual as an appointed or provisional representative.
2. A certificate by the principal that the individual is a fit and proper person.
3. In the case of a provisional representative, an undertaking by the principal to undertake such responsibilities in relation to the representative as may be prescribed.