Financial Advisers (Amendment) Regulations 2008

No. S 274

Financial Advisers Act

(Chapter 110)

Financial Advisers (Amendment) Regulations 2008

In exercise of the powers conferred by sections 23(1)(f) and 104 of the Financial Advisers Act, the Monetary Authority of Singapore hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Financial Advisers (Amendment) Regulations 2008 and shall come into operation on 28th May 2008.

Amendment of regulation 2

2. Regulation 2(1) of the Financial Advisers Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) is amended ––

(a)

by deleting the definition of “accredited investor” and substituting the following definition:

“ “accredited investor” has the same meaning as in section 4A(1)(a) of the Securities and Futures Act (Cap. 289);”;

(b)

by deleting the definition of “expert investor” and substituting the following definition:

“ “expert investor” has the same meaning as in section 4A(1)(b) of the Securities and Futures Act;”; and

(c)

by deleting the definition of “institutional investor” and substituting the following definition:

“ “institutional investor” has the same meaning as in section 4A(1)(c) of the Securities and Futures Act (Cap. 289);”.

Amendment of regulation 14A

3. Regulation 14A of the principal Regulations is amended by deleting sub-paragraph (iii) of paragraph (b) and substituting the following sub-paragraph:

“(iii)

where the person is an entity —

(A)

its directors or equivalent persons are fit and proper persons for office;

(B)

its substantial shareholders or equivalent persons are fit and proper persons to be in such capacity; and

(C)

persons (other than a person referred to in sub-paragraph (A) or (B)) alone or acting together with any connected person, who —

(CA)	control, directly or indirectly, not less than 20% of the voting power or such equivalent decision-making power in the entity; or
(CB)	acquire or hold, directly or indirectly, not less than 20% of the issued shares or such equivalent share of ownership of the entity,

are fit and proper persons to control such power or hold such shares or share of ownership.”.

Amendment of regulation 27

4. Regulation 27 of the principal Regulations is amended ––

(a)

by deleting the word “or” at the end of paragraph (1)(d);

(b)

by deleting the full-stop at the end of sub-paragraph (e) of paragraph (1) and substituting the word “; or”, and by inserting immediately thereafter the following sub-paragraph:

“(f)

a person resident in Singapore who ––

(i)	is exempt from the requirement to hold a capital markets services licence to carry on business in leveraged foreign exchange trading under paragraph 4(1) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (Cap. 289, Rg 10); and
(ii)	provides financial advisory services, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, to accredited investors solely in connection with his carrying on of the business of leveraged foreign exchange trading with such investors.”; and

(c)

by deleting the words “or (e)” in paragraphs (5), (6) and (7) and substituting in each case the words “, (e) or (f)”.

Amendment of regulation 28

5. Regulation 28 of the principal Regulations is amended by deleting “25” in paragraphs (2), (3) and (4) and substituting in each case “26”.

New regulation 32C

6. The principal Regulations are amended by inserting, immediately after regulation 32B, the following regulation:

“Exemption for foreign research houses

32C.—(1) A foreign research house shall be exempt under section 23(1)(f) of the Act from holding a financial adviser’s licence in respect of advising others by issuing or promulgating any research analyses or research reports concerning any investment product, to any investor under an arrangement between the foreign research house and a financial adviser in Singapore, subject to the following conditions:

(a)

the financial adviser in Singapore is ––

(i)	licensed under the Act; or
(ii)	exempt from holding a financial adviser’s licence under section 23(1)(a), (b), (c), (d) or (e) of the Act,

to provide the financial advisory service of advising others by issuing or promulgating research analyses or research reports concerning any investment product;

(b)

the foreign research house is licensed, registered, approved, authorised or otherwise supervised by a regulatory authority in the foreign country in which it carries on business, in accordance with the laws of that foreign country;

(c)

the research analysis or research report shall contain a statement to the effect that recipients of the analysis or report are to contact the financial adviser in Singapore in respect of any matters arising from, or in connection with, the analysis or report; and

(d)

where the research analysis or research report is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, the analysis or report shall contain a statement to the effect that the financial adviser in Singapore accepts legal responsibility for the contents of the analysis or report without any disclaimer limiting or otherwise curtailing such legal responsibility.

(2) In this regulation ––

“foreign country” means a country or territory other than Singapore;

“foreign research house” means a foreign company which carries on a business of providing the financial advisory service of advising others by issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning any investment product;

“regulatory authority”, in relation to a foreign country, means an authority of the foreign country exercising any function that corresponds to a regulatory function of the Authority under the Act.”.

[G.N. Nos. S 76/2004; S 692/2004; S 362/2005; S 58/2007]

Made this 22nd day of May 2008.

HENG SWEE KEAT

Managing Director,
Monetary Authority of Singapore.

[CMI 09/2008; AG/LEG/SL/110/2002/1 Vol. 3]

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