Financial Advisers (Exemption for Cross-Border Arrangements) (Foreign Offices) (Amendment No. 2) Regulations 2023

No. S 621

Financial Advisers Act 2001

Financial Advisers
(Exemption for Cross‑Border Arrangements)
(Foreign Offices) (Amendment No. 2)
Regulations 2023

In exercise of the powers conferred by section 130(1) of the Financial Advisers Act 2001, the Monetary Authority of Singapore makes the following Regulations:

Citation and commencement

1. These Regulations are the Financial Advisers (Exemption for Cross‑Border Arrangements) (Foreign Offices) (Amendment No. 2) Regulations 2023 and come into operation on 9 October 2023.

Amendment of regulation 2

2. In the Financial Advisers (Exemption for Cross‑Border Arrangements) (Foreign Offices) Regulations 2021 (G.N. No. S 763/2021) (called in these Regulations the principal Regulations), in regulation 2(1), delete the definition of “accredited investor”.

Amendment of regulation 8

3. In the principal Regulations, in regulation 8(3), before the definition of “foreign office”, insert —

“ “accredited investor” means any of the following persons in relation to a counterparty, if the person has opted, under regulation 3(2) of the Securities and Futures (Classes of Investors) Regulations 2018 (G.N. No. S 665/2018), to be treated by the counterparty as an accredited investor for all the consent provisions:

(a)	an individual mentioned in section 4A(1)(a)(i) of the Securities and Futures Act 2001;
(b)	a corporation mentioned in section 4A(1)(a)(ii) of the Securities and Futures Act 2001;
(c)	a trustee mentioned in section 4A(1)(a)(iii) of the Securities and Futures Act 2001;
(d)	a person mentioned in section 4A(1)(a)(iv) of the Securities and Futures Act 2001;

“consent provision” and “counterparty” have the meanings given by regulation 3(9) of the Securities and Futures (Classes of Investors) Regulations 2018;”.

Saving provision for accredited investor with respect to licensed financial adviser

4.—(1) A person (called in this regulation customer A) who was an accredited investor with respect to a licensed financial adviser (B) for the purposes of regulation 8(1)(d)(i) of the principal Regulations immediately before 9 October 2023 continues (despite regulations 2 and 3) to be an accredited investor with respect to B under that regulation on or after that date, if —

(a)	where B had provided any financial advisory service mentioned in paragraph 1 of the Second Schedule to the Act to customer A before 9 October 2023 in the course of carrying on the qualifying business in respect of which B was exempt under regulation 4(1) of those Regulations immediately before that date — the conditions in paragraph (2) are satisfied; or
(b)	where B had provided the financial advisory service mentioned in paragraph 3 of the Second Schedule to the Act to customer A before 9 October 2023 in the course of carrying on the qualifying business in respect of which B was exempt under regulation 4(1) of those Regulations immediately before that date — the conditions in paragraph (3) are satisfied.

(2) For the purposes of paragraph (1)(a), the conditions are that, on or after 9 October 2023 —

(a)

B provides any financial advisory service mentioned in paragraph 1 of the Second Schedule to the Act to customer A in the course of carrying on the qualifying business mentioned in that paragraph, where the provision of the financial advisory service is —

(i)	under an agreement entered into between customer A and B before 9 October 2023; and
(ii)	in respect of an investment product that B had previously advised customer A before that date; and

(b)

apart from sub‑paragraph (a), B does not provide any financial advisory service mentioned in paragraph 1 of the Second Schedule to the Act to customer A in the course of the qualifying business.

(3) For the purposes of paragraph (1)(b), the conditions are that, on or after 9 October 2023 —

(a)	B provides the financial advisory service mentioned in paragraph 3 of the Second Schedule to the Act to customer A in the course of carrying on the qualifying business mentioned in that paragraph, where the provision of the financial advisory service is pursuant to an instruction given by customer A to B before 9 October 2023; and
(b)	apart from sub‑paragraph (a), B does not provide any financial advisory service mentioned in paragraph 3 of the Second Schedule to the Act to customer A in the course of the qualifying business.

(4) A person (called in this regulation customer C) who was an accredited investor with respect to B for the purposes of regulation 8(2)(b)(ii) of the principal Regulations immediately before 9 October 2023 continues (despite regulations 2 and 3) to be an accredited investor with respect to B under that regulation on or after that date, if —

(a)

before 9 October 2023, B had provided the financial advisory service mentioned in paragraph 2 of the Second Schedule to the Act to customer C in the course of carrying on the qualifying business in respect of which B was exempt under regulation 4(4) of those Regulations immediately before that date; and

(b)

on or after 9 October 2023 —

(i)

B provides the financial advisory service mentioned in paragraph 2 of the Second Schedule to the Act to customer C in the course of carrying on the qualifying business, where the provision of the financial advisory service is —

(A)	under an agreement entered into between customer C and B before 9 October 2023; and
(B)	by issuing or promulgating a research analysis or research report that had been completed before that date; and

(ii)

apart from sub‑paragraph (i), B does not provide any financial advisory service mentioned in paragraph 2 of the Second Schedule to the Act to customer C in the course of the qualifying business.

(5) In this regulation, “qualifying business” has the meaning given by regulation 2(2) of the principal Regulations.

Saving provision for accredited investor with respect to specified exempt financial adviser

5.—(1) A person (called in this regulation customer D) who was an accredited investor with respect to a specified exempt financial adviser (E) for the purposes of regulation 8(1)(d)(i) of the principal Regulations immediately before 9 October 2023 continues (despite regulations 2 and 3) to be an accredited investor with respect to E under that regulation on or after that date, if —

(a)	where E had provided any financial advisory service mentioned in paragraph 1 of the Second Schedule to the Act to customer D before 9 October 2023 in the course of carrying on the qualifying business in respect of which E was exempt under regulation 6(2) or 7(1) of those Regulations immediately before that date — the conditions in paragraph (2) are satisfied; or
(b)	where E had provided the financial advisory service mentioned in paragraph 3 of the Second Schedule to the Act to customer D before 9 October 2023 in the course of carrying on the qualifying business in respect of which E was exempt under regulation 6(2) or 7(1) of those Regulations immediately before that date — the conditions in paragraph (3) are satisfied.

(2) For the purposes of paragraph (1)(a), the conditions are that, on or after 9 October 2023 —

(a)

E provides any financial advisory service mentioned in paragraph 1 of the Second Schedule to the Act to customer D in the course of carrying on the qualifying business mentioned in that paragraph, where the provision of the financial advisory service is —

(i)	under an agreement entered into between customer D and E before 9 October 2023; and
(ii)	in respect of an investment product that E had previously advised customer D before that date; and

(b)

apart from sub‑paragraph (a), E does not provide any financial advisory service mentioned in paragraph 1 of the Second Schedule to the Act to customer D in the course of the qualifying business.

(3) For the purposes of paragraph (1)(b), the conditions are that, on or after 9 October 2023 —

(a)	E provides the financial advisory service mentioned in paragraph 3 of the Second Schedule to the Act to customer D in the course of carrying on the qualifying business mentioned in that paragraph, where the provision of the financial advisory service is pursuant to an instruction given by customer D to E before 9 October 2023; and
(b)	apart from sub‑paragraph (a), E does not provide any financial advisory service mentioned in paragraph 3 of the Second Schedule to the Act to customer D in the course of the qualifying business.

(4) A person (called in this regulation customer F) who was an accredited investor with respect to E for the purposes of regulation 8(2)(b)(ii) of the principal Regulations immediately before 9 October 2023 continues (despite regulations 2 and 3) to be an accredited investor with respect to E under that regulation on or after that date, if —

(a)

before 9 October 2023, E had provided the financial advisory service mentioned in paragraph 2 of the Second Schedule to the Act to customer F in the course of carrying on the qualifying business in respect of which E was exempt under regulation 6(6) of those Regulations immediately before that date; and

(b)

on or after 9 October 2023 —

(i)

E provides the financial advisory service mentioned in paragraph 2 of the Second Schedule to the Act to customer F in the course of carrying on the qualifying business, where the provision of the financial advisory service is —

(A)	under an agreement entered into between customer F and E before 9 October 2023; and
(B)	by issuing or promulgating a research analysis or research report that had been completed before that date; and

(ii)

apart from sub‑paragraph (i), E does not provide any financial advisory service mentioned in paragraph 2 of the Second Schedule to the Act to customer F in the course of the qualifying business.

(5) In this regulation —

“specified exempt financial adviser” has the meaning given by regulation 2(1) of the principal Regulations;

“qualifying business” has the meaning given by regulation 2(2) of the principal Regulations.

[G.N. No. S 223/2023]

Made on 7 September 2023.

RAVI MENON

Managing Director,
Monetary Authority of Singapore.

[CMI 12/2023; AG/LEGIS/SL/110/2020/6 Vol. 2]

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