17. Regulations 33 and 34 of the principal Regulations are deleted and the following regulations substituted therefor:“Exemption from section 25 of Act for advising accredited investor or expert investor |
33.—(1) Section 25 of the Act shall not apply to a licensee, an exempt financial adviser, or any of its representatives, when providing any financial advisory service in respect of —(a) | any designated investment product (within the meaning of section 25(6) of the Act) to an accredited investor; or | (b) | any designated investment product (within the meaning of section 25(6) of the Act), that is a capital markets product, to an expert investor. |
(2) Where a licensee, an exempt financial adviser, or any of its representatives, provides any financial advisory service in the circumstances specified in paragraph (1), the licensee, exempt financial adviser or representative, as the case may be, shall disclose the exemption under that paragraph to the accredited investor or expert investor, as the case may be, unless the accredited investor or expert investor is —(a) | an institutional investor; | (b) | a related corporation of the licensee or exempt financial adviser, as the case may be; | (c) | a person who is connected to the licensee or exempt financial adviser, as the case may be; or | (d) | an approved headquarters company or approved Finance and Treasury Centre which carries on business involving the provision of all or any type of financial advisory service, where such business has been approved as a qualifying service in relation to that headquarters company or Finance and Treasury Centre under section 43E (2)(a) or 43G(2)(a) of the Income Tax Act (Cap. 134), as the case may be. |
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(3) Any person who contravenes paragraph (2) shall be guilty of an offence. |
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Exemption from section 27 of Act in certain circumstances |
34.—(1) Section 27 of the Act shall not apply to a licensee, an exempt financial adviser, or any of its representatives, when making a recommendation in respect of —(a) | any investment product to an accredited investor; | (b) | any capital markets product to an expert investor; or | (c) | any Government securities. |
(2) Where a licensee, an exempt financial adviser, or any of its representatives, provides any financial advisory service in the circumstances specified in paragraph (1), the licensee, exempt financial adviser or representative, as the case may be, shall disclose the exemption under that paragraph to the accredited investor or expert investor, as the case may be, unless the accredited investor or expert investor is —(a) | an institutional investor; | (b) | a related corporation of the licensee or exempt financial adviser, as the case may be; | (c) | a person who is connected to the licensee or exempt financial adviser, as the case may be; or | (d) | an approved headquarters company or approved Finance and Treasury Centre which carries on business involving the provision of all or any type of financial advisory service, where such business has been approved as a qualifying service in relation to that headquarters company or Finance and Treasury Centre under section 43E (2)(a) or 43G(2)(a) of the Income Tax Act (Cap. 134), as the case may be. |
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(3) Any person who contravenes paragraph (2) shall be guilty of an offence.”. |
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