Financial Advisers Act
(CHAPTER 110, Sections 6(3), 8, 9, 14, 9, 16(2), 18, 19(1), 23, 24, 28, 32, 36(7), 29, 45, 48(1), 56, 100 and 104)
Financial Advisers Regulations
Rg 2
G.N. No. S 462/2002

(29th February 2004)
[1st October 2002]
1.  These Regulations may be cited as the Financial Advisers Regulations.
2.—(1)  In these Regulations, unless the context otherwise requires —
“accredited investor” means —
(a)an individual —
(i)whose net personal assets exceed $2 million in value (or its equivalent in a foreign currency); or
(ii)whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency);
(b)a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency), as determined by —
(i)the most recent audited balance-sheet of the corporation; or
(ii)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 is a date within the preceding 12 months;
(c)the trustee of a trust of which all property and rights of any kind whatsoever held on trust for the beneficiaries of the trust exceed $10 million in value (or its equivalent in a foreign currency);
(d)an entity (other than a corporation) with net assets exceeding $10 million in value (or its equivalent in a foreign currency);
(e)a partnership (other than a limited liability partnership within the meaning of the Limited Liability Partnerships Act 2005 (Act 5 of 2005)) in which each partner is an accredited investor; or
(f)a corporation the sole business of which is to hold investments and the entire share capital of which is owned by one or more persons, each of whom is an accredited investor;
[S 362/2005 wef 01/07/2005]
“advertisement” means the dissemination or conveyance of information, or an invitation or solicitation, by any means or in any form, including by means of —
(a)publication in a newspaper, magazine, journal or other periodical;
(b)display of posters or notices;
(c)circulars, handbills, brochures, pamphlets, books or other documents;
(d)letters addressed to individuals or bodies corporate or unincorporate;
(e)photographs or cinematograph films; or
(f)sound broadcasting, television, the Internet or other media;
“bonds” includes —
(a)any note, bond or Treasury Bill;
(b)an option in respect of any note, bond or Treasury Bill; and
(c)such other securities or class of securities as the Authority may from time to time, by a guideline issued by the Authority, determine;
“capital markets products” has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289);
“client’s money or property” has the same meaning as in section 28(4) of the Act;
“entity” includes a corporation, an unincorporated association, a partnership and the government of any state, but does not include a trust;
[S 362/2005 wef 01/07/2005]
“expert investor” means a person whose business involves the acquisition and the disposal or holding of capital markets products, whether as principal or agent;
[S 362/2005 wef 01/07/2005]
“foreign company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);
“foreign exchange trading” has the same meaning as in section 2(1) of the Securities and Futures Act;
“Government securities” means securities issued or proposed to be issued by the Government, and includes —
(a)any debenture, stock or bond issued or proposed to be issued by the Government;
(b)any right or option in respect of any debenture, stock or bond referred to in paragraph (a);
(c)any book-entry Government securities as defined in section 2 of the Development Loan (1987) Act (Cap. 81A) or section 2 of the Government Securities Act (Cap. 121A); and
(d)any book-entry Treasury Bill as defined in section 2 of the Local Treasury Bills Act (Cap. 167);
“guideline issued by the Authority” means a guideline or other document issued by the Authority under section 64 of the Act;
“institutional investor” means —
(a)a bank that is licensed under the Banking Act (Cap. 19);
(b)a merchant bank that is approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);
(c)a finance company that is licensed under the Finance Companies Act (Cap. 108);
(d)a company or society registered under the Insurance Act (Cap. 142) as an insurer;
(e)a company registered under the Trust Companies Act (Cap. 336);
(f)the Government;
(g)a statutory body established under any Act;
(h)a pension fund or collective investment scheme;
(i)the holder of a capital markets services licence for —
(i)dealing in securities;
(ii)fund management;
(iii)providing custodial services for securities;
(iv)securities financing; or
(v)trading in futures contracts; or
(j)a person (other than an individual) who carries on the business of dealing in bonds with accredited investors or expert investors;
[S 362/2005 wef 01/07/2005]
“net asset value”, in relation to a corporation, means the excess of the value of the assets owned by the corporation over its liabilities;
“net head office funds”, in relation to a foreign company, means the net liability of the Singapore branch of that foreign company to its head office and any other branch outside of Singapore;
“paid-up capital” means ordinary shares and non-redeemable preference shares that have been fully paid for.
(2)  For the purposes of the definition of “net asset value” in paragraph (1) —
(a)in determining the value of the assets owned by a corporation, any amount on account of goodwill or of any other intangible assets shall be disregarded; and
(b)in determining the amount of the liabilities of a corporation —
(i)all contingent or prospective liabilities shall be taken into account; and
(ii)any amount on account of any liability related to the share capital of the corporation shall not be taken into account.