PART VI | Division 1 — General exemptions |
| Exemption from requirement to hold financial adviser’s licence for certain persons in respect of certain activities |
27.—(1) Subject to this regulation, the following persons are exempt from holding a financial adviser’s licence under section 20(1)(g) of the Act:| (a) | 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, but only to the extent that such provision of financial advisory service has been approved as a qualifying service in relation to that headquarters company or Finance and Treasury Centre under section 43D(2)(a) or 43E(2)(a) of the Income Tax Act 1947, as the case may be; [S 222/2023 wef 31/12/2021] | | (b) | a corporation which provides all or any type of financial advisory service to any of its related corporations; | | (c) | a person who provides all or any type of financial advisory service to any of its connected persons; | | (d) | a person resident in Singapore who acts, whether directly or indirectly, as a financial adviser in giving advice in Singapore, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, concerning any investment product (other than life policies), to not more than 30 accredited investors on any occasion; [S 362/2005 wef 01/07/2005] [S 274/2008 wef 28/05/2008] [S 383/2012 wef 07/08/2012] [S 659/2018 wef 08/10/2018] | | (e) | a person who provides all or any type of financial advisory service to an institutional investor; [S 362/2005 wef 01/07/2005] [S 274/2008 wef 28/05/2008] [S 383/2012 wef 07/08/2012] [S 659/2018 wef 08/10/2018] | | (f) | a person who acts, whether directly or indirectly, as a financial adviser in —| (i) | giving advice in Singapore, either directly or through publications or writings, and whether in electronic, print or other form; or | | (ii) | issuing or promulgating research analyses or research reports, whether in electronic, print or other form, |
| in respect of the person’s business of fund management that is carried out in accordance with paragraph 5(1)(j) or (k) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations; |
[S 659/2018 wef 08/10/2018] | | (g) | a person who carries on business of advising accredited investors or expert investors, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, concerning OTC derivatives contracts the value of which is determined by reference to —| (i) | the value or amount of one or more commodities; or | | (ii) | fluctuations in the values or amounts of one or more commodities; [S 659/2018 wef 08/10/2018] |
| | (h) | an approved global trading company which carries on business of advising others, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, concerning OTC derivatives contracts the value of which is determined by reference to —| (i) | the value or amount of one or more commodities; or | | (ii) | fluctuations in the values or amounts of one or more commodities. [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
|
| (1A) For the purposes of paragraph (1)(d), where a person acts as a financial adviser in giving advice in Singapore in the manner specified in that paragraph in the period from 8 October 2018 to 7 April 2019 (both dates inclusive) to an ex-accredited investor who is the person’s existing customer, that ex-accredited investor is treated as an accredited investor. [S 294/2019 wef 08/10/2018] |
| (1B) For the purposes of paragraph (1)(g), where a person carries on business of advising any ex-accredited investor who is an existing customer of the person in the manner mentioned in that paragraph and in the period from 8 October 2018 to 7 April 2019 (both dates inclusive), the person is treated as carrying on the business of advising accredited investors in that manner. [S 294/2019 wef 08/10/2018] |
| (2) A person who is exempt under paragraph (1)(a), (b) or (c) may, in ascertaining the number of accredited investors for the purpose of exemption under paragraph (1)(d), exclude those persons on behalf of whom he provides all or any type of financial advisory service under paragraph (1)(a), (b) or (c). |
(3) A person referred to in paragraph (1)(d) which is exempt from the requirement to hold a capital markets services licence to carry on business in fund management under paragraph 5(1)(i) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations shall not be, or shall cease to be, exempt from holding a financial adviser’s licence under section 20(1)(g) of the Act if —| (a) | the aggregate of the number of qualified investors on behalf of which it carries on business in fund management and the number of accredited investors to which it provides financial advisory services exceeds 30 in total; | | (b) | more than 15 of the qualified investors on behalf of which it carries on business in fund management are collective investment schemes, closed-end funds, or limited partnerships referred to in paragraph 5(3)(e) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations; or | | (c) | the total value of its managed assets (as defined in paragraph 5(7K) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations) exceeds $250 million. [S 383/2012 wef 07/08/2012] [S 222/2023 wef 31/12/2021] |
|
(3A) A person otherwise exempted under paragraph (1)(d) shall not be, or shall cease to be, so exempt if —| (a) | the person has not commenced business in accordance with paragraph (1)(d) within 6 months from the date of commencement of business as specified in the notice that the person has lodged with the Authority in accordance with regulation 37(2); or | | (b) | the person has ceased to carry on business in accordance with paragraph (1)(d), and has not resumed business in the same regulated activity in accordance with that paragraph within a continuous period of 6 months from the date of cessation. [S 362/2005 wef 01/07/2005] |
|
| (4) Section 42 of the Act shall, with the necessary modifications, apply to the persons referred to in paragraph (1). [S 222/2023 wef 31/12/2021] |
| (5) A person otherwise exempt under paragraph (1) shall not be, or shall cease to be, so exempt if he also carries on a business of providing any financial advisory service other than in accordance with paragraph (1)(a), (b), (c), (d), (e), (f), (g) or (h). [S 274/2008 wef 28/05/2008] [S 383/2012 wef 07/08/2012] [S 659/2018 wef 08/10/2018] |
(6) A person referred to in paragraph (1)(c), (d), (e), (f) or (g) who is an individual shall not be, or shall cease to be, exempt from holding a financial adviser’s licence under section 20(1)(g) of the Act if —| (a) | he is or becomes an employee or representative of a licensed financial adviser or an exempt financial adviser; | | (b) | he has been adjudged a bankrupt, whether in Singapore or elsewhere; or | | (c) | he has been convicted —| (i) | whether in Singapore or elsewhere, of any offence in connection with the promotion, formation or management of a corporation or involving fraud or dishonesty, or the conviction for which involved a finding that he had acted fraudulently or dishonestly; | | (ii) | of any offence under the Companies Act 1967 involving lack of diligence, or the conviction for which involved a finding that he had acted with a lack of diligence, in the discharge of his duties as a director of a corporation; [S 222/2023 wef 31/12/2021] | | (iii) | of any offence under the Act; or | | (iv) | of any offence under the Banking Act 1970, the Finance Companies Act 1967, the Financial Services and Markets Act 2022, the Insurance Act 1966, the Monetary Authority of Singapore Act 1970, the Payment Services Act 2019, the Penal Code 1871 or the Securities and Futures Act 2001. [S 274/2008 wef 28/05/2008] [S 383/2012 wef 07/08/2012] [S 659/2018 wef 08/10/2018] [S 842/2019 wef 28/01/2020] [S 222/2023 wef 31/12/2021] [S 222/2023 wef 28/04/2023] |
|
|
(7) A person referred to in paragraph (1)(a), (b), (c), (d), (e), (f), (g) or (h) which is a corporation shall not be, or shall cease to be, exempt from holding a financial adviser’s licence under section 20(1)(g) of the Act if —| (a) | the corporation or any of its substantial shareholders is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere; | | (b) | a receiver, receiver and manager, judicial manager, or such other person having the powers and duties of a receiver, receiver and manager or judicial manager, has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the corporation or any of its substantial shareholders; | | (c) | the corporation or any of its substantial shareholders has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his or its creditors, being a compromise or scheme of arrangement that is still in operation; | | (d) | an enforcement order against the corporation or any of its substantial shareholders in respect of a judgment debt has been returned unsatisfied in whole or in part; or [S 342/2022 wef 04/05/2022] | | (e) | the corporation or any of its substantial shareholders has been convicted —| (i) | whether in Singapore or elsewhere, of any offence in connection with the promotion, formation or management of a corporation or involving fraud or dishonesty, or the conviction for which involved a finding that he or it had acted fraudulently or dishonestly; | | (ii) | of any offence under the Companies Act 1967 involving lack of diligence, or the conviction for which involved a finding that he had acted with a lack of diligence, in the discharge of his duties as a director of a corporation; [S 222/2023 wef 31/12/2021] | | (iii) | of any offence under the Act; or | | (iv) | of any offence under the Banking Act 1970, the Finance Companies Act 1967, the Financial Services and Markets Act 2022, the Insurance Act 1966, the Monetary Authority of Singapore Act 1970, the Payment Services Act 2019, the Penal Code 1871 or the Securities and Futures Act 2001. [S 362/2005 wef 01/07/2005] [S 274/2008 wef 28/05/2008] [S 383/2012 wef 07/08/2012] [S 659/2018 wef 08/10/2018] [S 842/2019 wef 28/01/2020] [S 222/2023 wef 31/12/2021] [S 222/2023 wef 28/04/2023] |
|
|
(8) In this regulation —| “approved Finance and Treasury Centre” means an approved Finance and Treasury Centre under section 43E of the Income Tax Act 1947; [S 222/2023 wef 31/12/2021] |
| “approved global trading company” means an approved global trading company under section 43I of the Income Tax Act 1947; [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
| “approved headquarters company” means an approved headquarters company under section 43D of the Income Tax Act 1947; [S 222/2023 wef 31/12/2021] |
| “fund management” has the same meaning as in section 2(1) of the Securities and Futures Act 2001; [S 222/2023 wef 31/12/2021] |
“qualified investor” has the same meaning as in paragraph 1 of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10) except that any reference in that paragraph to “accredited investor”, in relation to any transaction, is read to include —| (a) | a person who is treated as an “accredited investor” under paragraph (a), (b), (c), (d) or (e) of regulation 4(1) or (2) of the Securities and Futures (Amendment) Act 2017 (Saving and Transitional Provisions for Classes of Investors) Regulations 2018 (G.N. No. S 662/2018), in respect of a transaction mentioned in that paragraph; and | | (b) | a person (A) mentioned in regulation 2 of the Securities and Futures (Prescribed Specific Classes of Investors) Regulations 2005 (G.N. No. S 369/2005) as in force immediately before 8 January 2019, if the transaction —| (i) | is entered into between A and a person (B) mentioned in paragraph (1)(d) of this regulation; and | | (ii) | only involves funds —| (A) | that were transferred to B before 8 January 2019; or | | (B) | in respect of which an agreement had been entered into before 8 January 2019 to transfer those funds to B; [S 294/2019 wef 08/01/2019] [S 222/2023 wef 31/12/2021] |
|
|
|
| “resident in Singapore” has the same meaning as in section 2(1) of the Income Tax Act 1947. [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
|
|
| Exemption of banks and merchant banks |
27A.—(1) A bank or merchant bank which is exempt from holding a financial adviser’s licence under section 20(1)(a) or (b), respectively, of the Act shall be exempt from section 20(2) of the Act and regulation 37 in respect of its carrying on of the business of advising others, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, on spot foreign exchange contracts other than for the purposes of leveraged foreign exchange trading arranged by it or by —| (a) | any bank that holds a licence granted under section 7 or 79 of the Banking Act 1970; or [S 462/2021 wef 01/07/2021] [S 222/2023 wef 31/12/2021] | | (b) | any merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970. [S 462/2021 wef 01/07/2021] [S 222/2023 wef 31/12/2021] |
| (2) A representative of a bank or merchant bank exempt from section 20(2) of the Act and regulation 37 under paragraph (1) shall be exempt from section 22(1) of the Act in respect of his carrying out of the activity referred to in paragraph (1) for the bank or merchant bank. [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
| Exemption for giving advice or analysis on bonds |
28.—(1) A corporation (not being a licensed financial adviser or a person exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act) which carries on a business of providing advice concerning bonds to any of the following, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, is exempt under section 20(1)(g) of the Act from holding a financial adviser’s licence in respect of that activity:| (a) | an expert investor; | | (b) | an accredited investor; | | (c) | an ex-accredited investor who is an existing customer of the corporation, but only in respect of the corporation’s business of providing advice concerning bonds that is carried on in the period from 8 October 2018 to 7 April 2019 (both dates inclusive). [S 294/2019 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
| (2) A licensed financial adviser which carries out the activity referred to in paragraph (1) shall be exempt from complying with sections 35 to 38 and 45 of the Act in respect of such activity. [S 274/2008 wef 28/05/2008] [S 222/2023 wef 31/12/2021] |
| (3) A person exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act which carries out the activity referred to in paragraph (1) shall, notwithstanding section 20(2) of the Act, be exempt from complying with sections 35 to 38 and 45 of the Act in respect of such activity. [S 274/2008 wef 28/05/2008] [S 222/2023 wef 31/12/2021] |
| (4) An appointed or a provisional representative of a financial adviser referred to in paragraphs (2) and (3) who carries out the activity referred to in paragraph (1) for the financial adviser shall be exempt from complying with sections 35 to 38 and 45 of the Act in respect of such activity. [S 274/2008 wef 28/05/2008] [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
| Exemption for Service Companies |
| 29.—(1) A Service Company which carries on the business of advising others, either directly or through publications or writings or by issuing or promulgating research analyses or research reports, concerning any investment product shall, if such business is solely incidental to its business as an agent of a member of Lloyd’s, be exempt from holding a financial adviser’s licence under section 20(1)(g) of the Act. [S 362/2005 wef 01/07/2005] [S 222/2023 wef 31/12/2021] | (2) Sections 34 to 38, 43, 45 and 80 of the Act shall, with the necessary modifications, apply to a Service Company referred to in paragraph (1). [S 222/2023 wef 31/12/2021] |
| (3) Sections 27, 34 to 38, 43, 45 and 80 of the Act shall, with the necessary modifications, apply to a representative of a Service Company referred to in paragraph (1). [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
| (4) In this regulation, “agent”, in relation to a member of Lloyd’s, “Lloyd’s”, “member of Lloyd’s” and “Service Company” have the same meanings as in regulation 2 of the Insurance (Lloyd’s Asia Scheme) Regulations (Rg 9). |
|
| 30. [Deleted by S 362/2005 wef 01/07/2005] |
| Exemption for introducing activities |
31.—(1) A person (not being an individual, a licensed financial adviser or a person exempt under section 20(1)(a), (b), (c), (d) or (e) of the Act) shall be exempt under section 20(1)(g) of the Act from holding a financial adviser’s licence (referred to in this regulation as an introducer) in respect of all introducing activities it carries out for one or more licensed financial advisers or persons exempt under section 20(1)(a), (b), (c), (d) or (e) of the Act (referred to in this regulation as an introducee), subject to the following conditions:| (a) | the introducer shall, when carrying out introducing activities (whether through any of its representatives or otherwise), disclose to every client —| (i) | that the introducer is carrying out introducing activities for one or more introducees; | | (ii) | that, when carrying out introducing activities, the introducer and its representatives shall not —| (A) | give advice or provide recommendations on any investment product to the client; or [S 659/2018 wef 08/10/2018] | | (B) | [Deleted by S 659/2018 wef 08/10/2018] | | (C) | arrange any contract of insurance in respect of life policies, |
| other than to the extent of carrying out introducing activities; |
| | (iii) | whether or not the introducer or any of its representatives is or will be remunerated by one or more introducees for carrying out introducing activities; and | | (iv) | where the introducer or any of its representatives is or will be remunerated by one or more introducees, the amount of remuneration if so requested by the client; |
| | (b) | where the introducer carries out introducing activities for more than one introducee, the introducer (whether through any of its representatives or otherwise) shall, with the consent of the client, introduce that client to every introducee that provides the type or types of financial advisory service required by that client; | | (c) | the introducer shall not receive or deal with client’s money or property in relation to introducing activities; and | | (d) | the introducer shall establish and maintain a register of its representatives referred to in paragraph (2). [S 222/2023 wef 31/12/2021] |
(2) A representative of an introducer —| (a) | shall, when carrying out introducing activities, disclose to every client —| (i) | that he is carrying out introducing activities on behalf of the introducer; | | (ii) | that the introducer acts for one or more introducees; | | (iii) | that, when carrying out introducing activities, he shall not —| (A) | give advice or provide recommendations on any investment product to the client; or [S 659/2018 wef 08/10/2018] | | (B) | [Deleted by S 659/2018 wef 08/10/2018] | | (C) | arrange any contract of insurance in respect of life policies, |
| other than to the extent of carrying out introducing activities; |
| | (iv) | whether or not he or the introducer is or will be remunerated by one or more introducees for carrying out introducing activities; and | | (v) | where he or the introducer is or will be remunerated by one or more introducees, the amount of remuneration if so requested by the client; |
| | (b) | shall, where he carries out introducing activities on behalf of the introducer for more than one introducee, with the consent of the client, introduce that client to every introducee that provides the type or types of financial advisory service required by that client; and | | (c) | shall not receive or deal with client’s money or property in relation to introducing activities. |
|
(3) An individual (other than a representative or an employee referred to in paragraph (2), (5), (6) or (8)) shall be exempt from —| (a) | section 22(1) in respect of all introducing activities he carries out on behalf of one or more introducees; [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] | | (b) | complying with sections 34, 36 and 45 of the Act in respect of all introducing activities he carries out on behalf of one or more persons exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act; and [S 222/2023 wef 31/12/2021] | | (c) | section 27 of the Act in respect of all introducing activities he carries out on behalf of more than one introducee, |
| subject to the following conditions: |
| (i) | the individual shall, when carrying out introducing activities, disclose to the client —| (A) | that he is carrying out introducing activities for one or more introducees; | | (B) | that he shall not give advice or provide recommendations on any investment product to the client or arrange any contract of insurance in respect of life policies, other than to the extent of carrying out introducing activities; [S 659/2018 wef 08/10/2018] | | (C) | whether or not he is or will be remunerated by one or more introducees for carrying out introducing activities; and | | (D) | where he is or will be remunerated by one or more introducees, the amount of remuneration if so requested by the client; |
| | (ii) | where the individual carries out introducing activities for more than one introducee, he shall, with the consent of the client, introduce that client to every introducee that provides the type or types of financial advisory service required by that client; and | | (iii) | the individual shall not receive or deal with client’s money or property in relation to introducing activities. [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
(4) A licensed financial adviser shall be exempt from complying with sections 12, 34, 36 and 45 of the Act in respect of all introducing activities it carries out on its own behalf or for one or more introducees, subject to —| (a) | the conditions specified in paragraph (1)(a), (b) and (c) which shall apply as if every reference in those conditions to introducer were a reference to the licensed financial adviser; and | | (b) | the condition that it shall establish and maintain a register of the appointed or provisional representatives referred to in paragraph (5) and the employees referred to in paragraph (6). [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
(5) An appointed or a provisional representative of a licensed financial adviser referred to in paragraph (4) shall be exempt from complying with sections 34, 36 and 45 of the Act in respect of all introducing activities he carries out on behalf of the financial adviser, subject to —| (a) | the conditions specified in paragraph (2)(a)(i), (iii), (iv) and (v) and (c) which, in a case where he acts for the financial adviser when the financial adviser is carrying out introducing activities on its own behalf, shall apply as if every reference in those conditions to introducer were a reference to the financial adviser and every reference to “by the introducee” were deleted; and | | (b) | the conditions specified in paragraph (2)(a), (b) and (c) which, in a case where he acts for the financial adviser when the financial adviser is carrying out introducing activities for one or more introducees, shall apply as if every reference in those conditions to introducer were a reference to the financial adviser. [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
(6) An employee of a licensed financial adviser referred to in paragraph (4) (not being an appointed or a provisional representative) shall be exempt from section 22(1) in respect of all introducing activities he carries out on behalf of the financial adviser, subject to —| (a) | the conditions specified in paragraph (2)(a)(i), (iii), (iv) and (v) and (c) which, in a case where he acts for the financial adviser when the financial adviser is carrying out introducing activities on its own behalf, shall apply as if every reference in those conditions to introducer were a reference to the financial adviser and every reference to “by the introducee” were deleted; and | | (b) | the conditions specified in paragraph (2)(a), (b) and (c) which, in a case where he acts for the financial adviser when the financial adviser is carrying out introducing activities for one or more introducees, shall apply as if every reference in those conditions to introducer were a reference to the financial adviser. [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
(7) A person exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act shall be exempt from complying with sections 34, 36 and 45 of the Act and regulation 37 in respect of all introducing activities it carries out on its own behalf or for one or more introducees, subject to —| (a) | the conditions specified in paragraph (1)(a), (b) and (c) which shall apply as if every reference in those conditions to introducer were a reference to the person; and | | (b) | the condition that it shall establish and maintain a register of the representatives referred to in paragraph (8). [S 222/2023 wef 31/12/2021] |
|
(8) A representative (other than a teller referred to in paragraph (8A)) of a person referred to in paragraph (7) shall be exempt from complying with sections 34, 36 and 45 of the Act in respect of all introducing activities he carries out on behalf of the person, subject to —| (a) | the conditions specified in paragraph (2)(a)(i), (iii), (iv) and (v) and (c) which, in a case where he acts for the person when the person is carrying out introducing activities on its own behalf, shall apply as if every reference in those conditions to introducer were a reference to the person and every reference to “by the introducee” were deleted; and | | (b) | the conditions specified in paragraph (2)(a), (b) and (c) which, in a case where he acts for the person when the person is carrying out introducing activities for one or more introducees, shall apply as if every reference in those conditions to introducer were a reference to the person. [S 433/2011 wef 28/07/2011] [S 222/2023 wef 31/12/2021] |
|
(8A) A teller shall be exempt from holding a representative’s licence in respect of all introducing activities he carries out on behalf of a person exempt under section 20(1)(a), (b), (c), (d) or (e) of the Act (referred to in this paragraph as the person), subject to the following conditions:| (a) | the introduction is done pursuant to an express request by the relevant client for information on investment products; | | (b) | the teller is not remunerated by the introducee or the person for carrying out introducing activities; | | (c) | in a case where the teller acts for the person when the person is carrying out introducing activities on its own behalf, the conditions specified in paragraph (2)(a)(i) and (iii) and (c) shall apply as if every reference in those conditions to introducer were a reference to the person; and | | (d) | in a case where the teller acts for the person when the person is carrying out introducing activities for one or more introducees, the conditions specified in paragraph (2)(a)(i), (ii) and (iii), (b) and (c) shall apply as if every reference in those conditions to introducer were a reference to the person. [S 433/2011 wef 28/07/2011] [S 222/2023 wef 31/12/2021] |
|
| (9) Any person who contravenes any condition or restriction specified in paragraph (1), (2) or (3) applicable to him shall be guilty of an offence. [S 362/2005 wef 01/07/2005] |
| (10) Sections 35, 38, 42, 43 and 80 of the Act shall, with the necessary modifications, apply to an introducer and an individual exempt under paragraph (3). [S 222/2023 wef 31/12/2021] |
| (11) Sections 27, 35, 38, 42, 43 and 80 of the Act shall, with the necessary modifications, apply to a representative of an introducer and an employee exempt under paragraph (6). [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
(11A) The registers referred to in paragraphs (1), (4) and (7) shall contain the following details or particulars in relation to each representative or employee, as the case may be:| (a) | his name; | | (b) | his identity card number or passport number; | | (c) | the date of his commencing introducing activities; and | | (d) | the date of his ceasing introducing activities, where applicable. |
|
(12) In this regulation —| “client” includes a prospective client; |
“introducing activity” means —| (a) | introducing any client to an introducee in relation to the provision of any type or types of financial advisory service by the introducee; or | | (b) | the activity referred to in sub-paragraph (a) and either or both of the following:| (i) | recording the particulars of any client and forwarding such particulars to an introducee with the client’s consent; | | (ii) | providing factual information to any client on investment products, including (where applicable) information on —| (A) | the name of the investment product; | | (B) | the product provider; | | (C) | the date on which the product is launched; | | (D) | the minimum subscription amount; and | | (E) | any fee or charge which may be imposed, |
|
|
| and “introduce” shall be construed accordingly; |
[S 433/2011 wef 28/07/2011] |
“teller” means an individual counter staff of a person exempt under section 20(1)(a), (b), (c), (d) or (e) of the Act who deals with clients for non-investment transactions, including —| (a) | renewal of fixed deposits; | | (b) | update of bank books or statements; | | (c) | cash deposits; and | | (d) | cash withdrawals. [S 433/2011 wef 28/07/2011] [S 222/2023 wef 31/12/2021] |
|
|
|
| 32. [Deleted by S 362/2005 wef 01/07/2005] |
| Exemption for persons exempt under Second Schedule to Securities and Futures (Licensing and Conduct of Business) Regulations |
32A.—(1) A corporation which is exempt from holding a capital markets services licence under paragraph 3(1)(d) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations is exempt under section 20(1)(g) of the Act from holding a financial adviser’s licence in respect of the following:| (a) | advising others, either directly or through publications or writings, and whether in electronic, print or other form, concerning futures contracts; | | (b) | issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning futures contracts. [S 222/2023 wef 31/12/2021] |
(2) A corporation which is exempt from holding a capital markets services licence under paragraph 3A(1)(d) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations is exempt under section 20(1)(g) of the Act from holding a financial adviser’s licence in respect of the following:| (a) | advising others, either directly or through publications or writings, and whether in electronic, print or other form, concerning OTC derivatives contracts; | | (b) | issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning OTC derivatives contracts. [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
|
|
| Exemption for advising institutional investor, related corporation, etc. |
32B.—(1) A licensed financial adviser, or a financial adviser which is exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act (referred to in this regulation as exempt financial adviser), shall be exempt from sections 34 to 38, 41, 43 and 45 of the Act and regulation 37 when providing any financial advisory service in respect of any investment product to —| (a) | an institutional investor; | | (b) | a related corporation of that licensed financial adviser or exempt financial adviser, as the case may be; | | (c) | a person that is connected to that licensed financial adviser 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 43D(2)(a) or 43E(2)(a) of the Income Tax Act 1947, as the case may be. [S 222/2023 wef 31/12/2021] |
(2) A financial adviser which is exempt from holding a financial adviser’s licence under section 20(1)(f) of the Act shall be exempt from sections 34, 35 and 45 of the Act when providing financial advisory service in respect of any investment product to —| (a) | an institutional investor; | | (b) | a related corporation of that financial adviser; | | (c) | a person that is connected to that financial adviser; 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 43D(2)(a) or 43E(2)(a) of the Income Tax Act 1947, as the case may be. [S 222/2023 wef 31/12/2021] |
|
| (3) An appointed or a provisional representative of a licensed financial adviser or an exempt financial adviser referred to in paragraph (1) shall be exempt from sections 34, 35, 36, 38, 43 and 45 of the Act in respect of his carrying out of the activity referred to in that paragraph for the licensed financial adviser or exempt financial adviser, as the case may be. [S 222/2023 wef 31/12/2021] |
| (4) An appointed or a provisional representative of a financial adviser referred to in paragraph (2) shall be exempt from sections 34, 35 and 45 of the Act in respect of his carrying out of the activity referred to in that paragraph for the financial adviser. [S 362/2005 wef 01/07/2005] [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
| Exemption for foreign research houses |
32C.—(1) A foreign research house shall be exempt under section 20(1)(g) 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, if —| (a) | the financial adviser in Singapore is ––| (i) | licensed under the Act; or | | (ii) | exempt from holding a financial adviser’s licence under section 20(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; |
[S 222/2023 wef 31/12/2021] | | (b) | the foreign research house —| (i) | carries out all its activities under the arrangement through one or more branches or offices (including its head office) that are established in foreign jurisdictions; and | | (ii) | is subject to regulatory oversight, in respect of any activity that is carried out by the foreign research house, by a foreign regulatory authority in each of the foreign jurisdictions mentioned in sub‑paragraph (i); [S 766/2021 wef 09/10/2021] |
| | (c) | the research analysis or research report contains 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 [S 766/2021 wef 09/10/2021] | | (d) | the analysis or report contains 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 unless the analysis or report is issued or promulgated to a person who is any of the following:| (i) | an accredited investor; | | (ii) | an expert investor; | | (iii) | an institutional investor; | | (iv) | an ex-accredited investor who is an existing customer of the financial adviser in Singapore, but only in respect of any research analysis or research report issued or promulgated in the period from 8 October 2018 to 7 April 2019 (both dates inclusive). [S 294/2019 wef 08/10/2018] [S 766/2021 wef 09/10/2021] [S 222/2023 wef 31/12/2021] |
|
(2) In this regulation ––| [Deleted by S 766/2021 wef 09/10/2021] |
| “foreign jurisdiction” means a country or jurisdiction other than Singapore; [S 766/2021 wef 09/10/2021] |
“foreign regulatory authority” means —| (a) | an authority of a foreign jurisdiction, exercising any function that corresponds to a regulatory function of the Authority under the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act; or [S 222/2023 wef 31/12/2021] [S 222/2023 wef 28/04/2023] | | (b) | a non-governmental organisation exercising any function that corresponds to a regulatory function of the Authority under the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act under the law of, or by delegation from an authority of, a foreign jurisdiction; [S 766/2021 wef 09/10/2021] [S 222/2023 wef 31/12/2021] [S 222/2023 wef 28/04/2023] |
|
| “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. [S 766/2021 wef 09/10/2021] |
| [Deleted by S 766/2021 wef 09/10/2021] |
|
|
| 32CA. [Deleted by S 794/2022 wef 09/10/2022] |
| Exemption for certain entities providing financial advisory service under approved arrangements |
| 32CB.—(1) Subject to the conditions in paragraph (2), a relevant entity is exempt under section 20(1)(g) of the Act from holding a financial adviser’s licence for providing a financial advisory service in respect of any ASEAN capital markets products. [S 515/2019 wef 01/08/2019] [S 222/2023 wef 31/12/2021] (2) The conditions mentioned in paragraph (1) are —| (a) | the financial advisory service is provided under an arrangement between the relevant entity and —| (i) | a company that is incorporated in Singapore; [S 515/2019 wef 01/08/2019] | | (ii) | an unincorporated association formed or constituted in Singapore; or [S 515/2019 wef 01/08/2019] | | (iii) | a licensed financial adviser, or a financial adviser who is exempt under section 20(1)(a), (b), (c), (d) or (e) of the Act, that is not a person mentioned in sub‑paragraph (i) or (ii); [S 515/2019 wef 01/08/2019] [S 222/2023 wef 31/12/2021] |
| | (b) | the arrangement mentioned in sub-paragraph (a) is approved by the Authority pursuant to an application made by the person mentioned in sub-paragraph (a)(i), (ii) or (iii), as the case may be; and [S 515/2019 wef 01/08/2019] | | (c) | the conditions subject to which the arrangement mentioned in sub-paragraph (a) is approved by the Authority are complied with. |
|
(3) In this regulation —| [Deleted by S 515/2019 wef 01/08/2019] |
“ASEAN capital markets products” means capital markets products that have previously been issued to one or more persons, and —| (a) | are listed for quotation or quoted on an organised market that is established in a member country of the Association of Southeast Asian Nations; or | | (b) | if not listed for quotation or quoted on an organised market, are the subject of —| (i) | an offer made to a person in a member country of the Association of Southeast Asian Nations which upon acceptance by such person, would give rise to a contract for the sale of those capital markets products; or | | (ii) | an invitation to any person in any member country of the Association of Southeast Asian Nations to make an offer, which upon acceptance by any person, would give rise to a contract for the sale of those capital markets products; [S 515/2019 wef 01/08/2019] |
|
|
| “ASEAN participating country” means such country, other than Singapore, that is a participant of the ASEAN Capital Market Professional Mobility Framework as the Authority may specify; [S 515/2019 wef 01/08/2019] |
| [Deleted by S 515/2019 wef 01/08/2019] |
“relevant entity” means —| (a) | a corporation (whether formed or incorporated or existing in Singapore or outside Singapore) that is licensed, registered, approved, or authorised by an authority of an ASEAN participating country exercising any function that corresponds to a regulatory function of the Authority under the Act, in accordance with the laws of that ASEAN participating country; or | | (b) | an unincorporated society, association or other body which —| (i) | under the law of any country, may sue or be sued, or hold property in the name of the secretary or any other officer of the society, association or body duly appointed for that purpose; and | | (ii) | is licensed, registered, approved, or authorised by an authority of an ASEAN participating country exercising any function that corresponds to a regulatory function of the Authority under the Act, in accordance with the laws of that ASEAN participating country. [S 515/2019 wef 01/08/2019] [S 515/2019 wef 01/08/2019] |
|
|
|
|
| Exemption for, and application of Regulations to, venture capital fund manager and its representatives |
32D.—(1) A venture capital fund manager is exempt from sections 34 to 38, 41, 42, 43 and 45 of the Act, as applied by section 20(2) of the Act, in respect of its business of advising one or more venture capital funds concerning any investment product, other than —| (a) | advising by issuing or promulgating research analyses or research reports concerning any investment product; or | | (b) | advising on corporate finance within the meaning of the Securities and Futures Act 2001. [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
| (2) A person acting as a representative of a venture capital fund manager in respect of the financial advisory service mentioned in paragraph (1) is exempt from section 22(1) of the Act. [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
| (3) A venture capital fund manager who is the principal of a representative providing the financial advisory service mentioned in paragraph (1) on behalf of the venture capital fund manager is exempt from section 22(5) of the Act. [S 659/2018 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
| (4) Regulation 37(1) does not apply to a venture capital fund manager. [S 586/2017 wef 20/10/2017] |
|
| Exemption from section 34 of Act for advising accredited investor or expert investor |
33.—(1) Section 34 of the Act shall not apply to a licensed financial adviser, an exempt financial adviser, or any of its appointed or provisional representatives, when providing any financial advisory service in respect of —| (a) | any designated investment product (within the meaning of section 34(7) of the Act) to any of the following: | (i) | an accredited investor; | | (ii) | an ex-accredited investor who is an existing customer of the licensed financial adviser or exempt financial adviser (as the case may be) but only in respect of the provision of the financial advisory service by the licensed financial adviser, the exempt financial adviser, or any of its appointed or provisional representative (as the case may be) in the period from 8 October 2018 to 7 April 2019 (both dates inclusive); or [S 294/2019 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
| | (b) | any designated investment product (within the meaning of section 34(7) of the Act), that is a capital markets product, to an expert investor. [S 222/2023 wef 31/12/2021] |
(2) Where a licensed financial adviser, an exempt financial adviser, or any of its appointed or provisional representatives, provides any financial advisory service in the circumstances specified in paragraph (1), the licensed financial adviser, exempt financial adviser or representative, as the case may be, shall disclose the exemption under that paragraph to the accredited investor, expert investor or ex-accredited investor, as the case may be, unless the accredited investor, expert investor or ex-accredited investor is —| (a) | an institutional investor; | | (b) | a related corporation of the licensed financial adviser or exempt financial adviser, as the case may be; | | (c) | a person who is connected to the licensed financial adviser 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 43D(2)(a) or 43E(2)(a) of the Income Tax Act 1947, as the case may be. [S 294/2019 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
|
| (3) Any person who contravenes paragraph (2) shall be guilty of an offence. [S 362/2005 wef 01/07/2005] [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
| Exemption from section 36 for dealers and related exemptions |
33A.—(1) A dealer is exempt from section 36 of the Act (as it applies to the dealer by reason of section 20(2) of the Act) in relation to a recommendation of a listed excluded investment product provided to the dealer’s client by the dealer or a trading representative of the dealer, subject to the following conditions:| (a) | the dealer or trading representative, as the case may be, provides together with the recommendation —| (i) | execution‑related advice for the listed excluded investment product being recommended; and | | (ii) | the rationale for the advice; |
| | (b) | the dealer has given to the client notice of the matters mentioned in paragraph (2), at the time mentioned in paragraph (3), whether directly, or indirectly through the dealer’s trading representative or any other agent. [S 222/2023 wef 31/12/2021] |
(2) The matters to be in the notice under paragraph (1)(b) are all of the following:| (a) | that any execution‑related advice provided by the dealer or the dealer’s trading representative, as the case may be, does not take into account any of the client’s investment objectives, financial situation or particular needs; | | (b) | that it is the responsibility of the client to ensure that the listed excluded investment product to which the execution‑related advice relates, and in which the client intends to invest, suits the client. |
|
| (3) The time of giving the notice under paragraph (1)(b) is before any execution‑related advice is given by the dealer, or the dealer’s trading representative, to the client for the first time on or after 1 April 2017. |
| (4) A dealer under paragraph (1) is exempt from section 22(5)(a) of the Act in respect of any trading representative that provides a recommendation of a listed excluded investment product on behalf of the dealer to a client of the dealer under the conditions mentioned in that paragraph, and such trading representative is exempt from section 22(1)(a) of the Act in providing such recommendation. [S 222/2023 wef 31/12/2021] |
(5) A dealer must keep a register containing the details mentioned in paragraph (6) of every trading representative —| (a) | in respect of whom the exemption under paragraph (4) relates; and | | (b) | who is not specified in the public register of representatives as an appointed representative or a provisional representative in respect of any type of financial advisory service. |
|
(6) For the purpose of paragraph (5), the details of the trading representative are as follows:| (a) | name; | | (b) | identity card number or passport number; | | (c) | date on which the trading representative commences providing recommendations in accordance with paragraph (1)(a) on behalf of the dealer; | | (d) | date on which the trading representative ceases providing recommendations in accordance with paragraph (1)(a) on behalf of the dealer. |
|
| (7) A dealer that fails to comply with paragraph (5) shall be guilty of an offence. |
(8) In this regulation —| “client” includes a prospective client; |
| “dealer” means a person exempt from holding a financial adviser’s licence under section 20(1)(a), (b) or (d) of the Act and who carries on a business of providing execution‑related advice; [S 222/2023 wef 31/12/2021] |
“execution activities” means dealing in capital markets products that are specified products that —| (a) | have received approval in-principle for listing and quotation on any approved exchange or overseas exchange; or | | (b) | are listed for quotation or quoted on any approved exchange or overseas exchange; [S 659/2018 wef 08/10/2018] |
|
“execution‑related advice” means advice that is provided by a dealer, or a trading representative of the dealer, to a client of the dealer where —| (a) | the advice concerns any listed excluded investment product; | | (b) | the advice is provided to the client directly or through any publication or writing, whether in electronic, print or other form (other than through the issuance or promulgation of any research analysis or research report, whether in electronic, print or other form); | | (c) | the provision of the advice is solely incidental to the carrying out of any execution activities by the dealer or the trading representative (as the case may be); and | | (d) | no discrete fee is charged by the dealer or trading representative (as the case may be) for the advice; |
|
| “listed excluded investment product” means a listed excluded investment product specified in the Fifth Schedule; |
| [Deleted by S 659/2018 wef 08/10/2018] |
| “trading representative”, in relation to a dealer, means an individual who is an appointed representative, a provisional representative or a temporary representative, as defined in section 2(1) of the Securities and Futures Act 2001, of the dealer in respect of the execution activities. [S 113/2017 wef 01/04/2017] [S 222/2023 wef 31/12/2021] |
|
|
| Exemption from section 36 of Act in certain circumstances |
34.—(1) Section 36 of the Act shall not apply to a licensed financial adviser, an exempt financial adviser, or any of its appointed or provisional representatives, when making a recommendation in respect of —| (a) | any investment product to any of the following:| (i) | an accredited investor; | | (ii) | an ex-accredited investor who is an existing customer of the licensed financial adviser or exempt financial adviser (as the case may be) but only in respect of the making of any recommendation by the licensed financial adviser, the exempt financial adviser, or any of its appointed or provisional representatives (as the case may be) in the period from 8 October 2018 to 7 April 2019 (both dates inclusive); [S 294/2019 wef 08/10/2018] |
| | (b) | any capital markets product to an expert investor; or | | (c) | any Government securities. |
(2) Where a licensed financial adviser, an exempt financial adviser, or any of its appointed or provisional representatives, provides any financial advisory service in the circumstances specified in paragraph (1), the licensed financial adviser, exempt financial adviser or appointed or provisional representative, as the case may be, shall disclose the exemption under that paragraph to the accredited investor, expert investor or ex-accredited investor, as the case may be, unless the accredited investor, expert investor or ex-accredited investor is —| (a) | an institutional investor; | | (b) | a related corporation of the licensed financial adviser or exempt financial adviser, as the case may be; | | (c) | a person who is connected to the licensed financial adviser 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 43D(2)(a) or 43E(2)(a) of the Income Tax Act 1947, as the case may be. [S 294/2019 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
|
| (3) Any person who contravenes paragraph (2) shall be guilty of an offence. [S 362/2005 wef 01/07/2005] [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
| Non‑application of sections 47 and 48 of Act for certain persons |
34A.—(1) Sections 47 and 48 of the Act do not apply to the following:| (a) | any bank in Singapore or any merchant bank which is exempt under the Financial Advisers (Exemption from Sections 34 to 38 and 45) Regulations (Rg 6) in respect of the provision of any financial advisory service relating to an existing product or a new product within the meaning of those Regulations, in relation to its business of providing such service; [S 222/2023 wef 31/12/2021] | | (b) | a bank or merchant bank which is exempt from holding a financial adviser’s licence under section 20(1)(a) or (b) of the Act in relation to its business involving an activity for which it is exempt under regulation 27A from complying with section 20(2) of the Act; [S 222/2023 wef 31/12/2021] | | (c) | a licensed financial adviser or an exempt financial adviser who solely advises others by issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning any investment product; | | (d) | a licensed financial adviser or an exempt financial adviser, in relation to —| (i) | its business of providing any financial advisory service to a client —| (A) | who is any of the following:| (AA) | an accredited investor; | | (AB) | an expert investor; | | (AC) | an institutional investor; | | (AD) | an existing customer of the licensed financial adviser or exempt financial adviser (as the case may be) but only in respect of the business of providing any financial advisory service that is carried out by the licensed financial adviser or exempt financial adviser (as the case may be) in the period from 8 October 2018 to 7 April 2019 (both dates inclusive); or |
| | (B) | that is not an individual; [S 294/2019 wef 08/10/2018] |
| | (ii) | its business of providing any financial advisory service through a department, division, section or unit within the financial adviser, for which the department, division, section or unit within the financial adviser has been exempted under section 130(2) of the Act from having to comply with —| (A) | sections 34, 36, 37 and 45 of the Act; and [S 222/2023 wef 31/12/2021] | | (B) | the relevant written directions; [S 222/2023 wef 31/12/2021] |
| | (iii) | its business of making recommendations with respect to life policies which are sold as an ancillary product to loans with a simple payment basis for the insurance cover (including policies that cover outstanding loans such as personal loans, car loans and credit card balances, but excluding mortgage reducing term assurance plans); | | (iv) | its business of making recommendations with respect to selling or purchasing group life policies; | | (v) | its business of providing execution‑related advice as a dealer; | | (vi) | its business of providing any financial advisory service where —| (A) | only factual information is provided to a client with respect to any investment product (including the marketing of any designated investment product through the use of direct response, advertising, or communications through any medium); and | | (B) | no advice or recommendation is provided by the licensed financial adviser, exempt financial adviser or their representatives, to such client with respect to such investment product; |
| | (vii) | its business involving an activity for which the licensed financial adviser or exempt financial adviser is exempt under regulation 31, 32B or 34 from complying with section 36 of the Act; or [S 386/2018 wef 10/12/2018] [S 222/2023 wef 31/12/2021] | | (viii) | its business involving an activity to which section 36 of the Act does not apply to a licensed financial adviser or an exempt financial adviser by virtue of regulation 18A. [S 222/2023 wef 31/12/2021] |
|
(2) In this regulation —| “collective investment scheme” has the same meaning as in section 2(1) of the Securities and Futures Act 2001; [S 222/2023 wef 31/12/2021] |
| “dealer” means a person exempt from holding a financial adviser’s licence under section 20(1)(a), (b) or (d) of the Act and who carries on a business of providing execution‑related advice; [S 222/2023 wef 31/12/2021] |
| “designated investment product” has the same meaning as in section 34(7) of the Act; [S 222/2023 wef 31/12/2021] |
“execution activities” means either or both of the following activities:| (a) | dealing in capital markets products that are specified products which have received approval in-principle for listing and quotation on, or are listed for quotation or quoted on, any approved exchange or overseas exchange; | | (b) | dealing in capital markets products that are futures contracts; [S 659/2018 wef 08/10/2018] |
|
| “execution‑related advice” means advice provided which is solely incidental to the execution activities of a dealer with no discrete fee charged by the dealer for the advice rendered; |
“group life policy” means a life policy in respect of which —| (a) | the policy owner is not an individual; and | | (b) | there are 2 or more insured persons; |
|
| [Deleted by S 659/2018 wef 08/10/2018] |
| “policy owner” has the same meaning as in the First Schedule to the Insurance Act 1966; [S 222/2023 wef 31/12/2021] |
“relevant written directions” means the following written directions issued by the Authority under section 67 of the Act:| (a) | Notice on Recommendations on Investment Products (Notice No. FAA‑N16); | | (b) | Notice on Appointment and Use of Introducers by Financial Advisers (Notice No. FAA‑N02); | | (c) | Notice on Information to Clients and Product Information Disclosure (Notice No. FAA‑N03); | | (d) | Notice on Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers (Notice No. FAA‑N13). [S 815/2015 wef 01/01/2016] [S 222/2023 wef 31/12/2021] |
|
|
|
| Exemption from section 45 of Act |
35.—(1) Section 45 of the Act shall not apply to a licensed financial adviser, an exempt financial adviser, or any of its appointed or provisional representatives when sending a circular or other similar written communication in which a recommendation is made in respect of —| (a) | any specified product to any of the following:| (i) | an expert investor; | | (ii) | an accredited investor; | | (iii) | an ex-accredited investor who is an existing customer of the licensed financial adviser or exempt financial adviser (as the case may be) but only in respect of the sending of any circular or other similar written communication in which a recommendation is made by the licensed financial adviser, the exempt financial adviser, or any of its appointed or provisional representatives in the period from 8 October 2018 to 7 April 2019 (both dates inclusive); or [S 294/2019 wef 08/10/2018] |
| | (b) | any Government securities. [S 362/2005 wef 01/07/2005] [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
(2) Where a licensed financial adviser, an exempt financial adviser, or any of its appointed or provisional representatives, provides any financial advisory service in the circumstances specified in paragraph (1), the licensed financial adviser, exempt financial adviser or appointed or provisional representative, as the case may be, shall disclose the exemption under that paragraph to the accredited investor, expert investor or ex-accredited investor, as the case may be, unless the accredited investor, expert investor or ex-accredited investor is —| (a) | an institutional investor; | | (b) | a related corporation of the licensed financial adviser or exempt financial adviser, as the case may be; | | (c) | a person who is connected to the licensed financial adviser 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 43D(2)(a) or 43E(2)(a) of the Income Tax Act 1947, as the case may be. [S 362/2005 wef 01/07/2005] [S 294/2019 wef 08/10/2018] [S 222/2023 wef 31/12/2021] |
|
| (3) Any person who contravenes paragraph (2) shall be guilty of an offence. [S 362/2005 wef 01/07/2005] [S 716/2010 wef 26/11/2010] [S 222/2023 wef 31/12/2021] |
|
| 36. [Deleted by S 386/2018 wef 10/12/2018] |
| Reporting requirements for exempt financial advisers |
37.—(1) A person who is exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act shall lodge with the Authority —| (a) | where the person arranges contracts of insurance in respect of life policies, but is not an insurer which arranges contracts of insurance in respect of life policies on its own behalf, a statement of placement of direct life insurance business handled by the person in Form 16 within 5 months after the end of its financial year or such longer period as the Authority may approve; | | (b) | unless sub-paragraph (ba) applies, where the person commences business in —| (i) | any financial advisory service or any additional financial advisory service; or | | (ii) | any financial advisory service in respect of any additional type of investment product, |
| a notice of such commencement in Form 26 not later than 14 days prior to the commencement or such later date as the Authority may allow in any particular case; or |
[S 659/2018 wef 08/10/2018] | | (ba) | where immediately before 8 October 2018, the person carried on a business of providing any financial advisory service specified in paragraph 1 or 2 of the Second Schedule to the Act in respect of any specified investment product, a notice of this fact in Form 26 not later than 36 months after 8 October 2018 or such later date as the Authority may allow in any particular case; [S 659/2018 wef 08/10/2018] [S 830/2020 wef 30/09/2020] | | (c) | where there is any change in any particulars required to be notified in —| (i) | Form 26 under sub-paragraph (b) or (ba); [S 659/2018 wef 08/10/2018] | | (ii) | Form 20 under regulation 37(1)(b) of these Regulations in force immediately before 26th November 2010; or | | (iii) | Form 21 under regulation 37(1)(c) of these Regulations in force immediately before 26th November 2010, |
| a notice of such change in Form 27, not later than 14 days after the date of change or such later date as the Authority may allow in any particular case; |
[S 716/2010 wef 26/11/2010] | | (d) | where the person ceases business in any or all financial advisory service, or any financial advisory service in respect of any investment product, for which notice has been given in —| (i) | Form 26 under sub‑paragraph (b) or (ba); [S 659/2018 wef 08/10/2018] | | (ii) | Form 20 under regulation 37(1)(b) of these Regulations in force immediately before 26th November 2010; or | | (iii) | Form 21 under regulation 37(1)(d) of these Regulations in force immediately before 26th November 2010, |
| a notice of such cessation in Form 28, not later than 14 days after the cessation or such later date as the Authority may allow; |
[S 716/2010 wef 26/11/2010] [S 659/2018 wef 08/10/2018] | | (da) | where an appointed representative or a provisional representative of the person ceases to act as a representative in relation to any financial advisory service in respect of any investment product that is indicated against the name of the representative in the public register of representatives, a notice of such cessation in Form 10 not later than the next business day after the date of such cessation; and [S 659/2018 wef 08/10/2018] | | (e) | where the person arranges contracts of insurance in respect of life policies and is required to maintain an insurance broking account under section 41(1) of the Act, an audited statement of the insurance broking premium account in Form 24 within 5 months after the end of its financial year or such longer period as the Authority may approve. [S 222/2023 wef 31/12/2021] |
(2) A person referred to in regulation 27(1)(d) shall lodge with the Authority —| (a) | a notice of commencement of business in Form 20 not later than 14 days after the date of commencement of its business as a financial adviser; | | (b) | a notice of change of particulars in Form 21 providing any change in the particulars required to be notified under sub-paragraph (a) not later than 14 days after the date of the change; | | (c) | a notice of cessation of business in Form 22 not later than 14 days after the date of cessation of its business as a financial adviser; and | | (d) | a declaration in Form 23 within 14 days after the end of its financial year or such longer period as the Authority may approve. |
|
(3) A person referred to in regulation 27(1)(d) who has, at any time before 1st October 2002, lodged a notice of commencement of business in the prescribed form —| (a) | under regulation 22A(5)(a)(i) of the revoked Futures Trading Regulations (Cap. 116, Rg 1, 1998 Ed.) in relation to the activity specified in paragraph (a) or (b) of the definition of “futures trading adviser” in section 2(1) of the repealed Futures Trading Act (Cap. 116, 1986 Ed.), or both activities; or | | (b) | under regulation 41(5)(a) of the revoked Securities Industry Regulations (Cap. 289, Rg 1, 1995 Ed.) in relation to the activity specified in paragraph (a) or (b) of the definition of “investment adviser” in section 2(1) of the repealed Securities Industry Act (Cap. 289, 1986 Ed.), or both activities, |
| shall be deemed to have lodged a notice of commencement of business in compliance with paragraph (2)(a). |
|
| (4) Any person who contravenes paragraph (1) or (2) shall be guilty of an offence. |
|
| Exemption of licensed financial advisers for distribution of direct purchase insurance products |
38.—(1) Subject to the conditions in paragraph (2), a licensed financial adviser which distributes direct purchase insurance products on behalf of one or more direct life insurers, is exempt from —| (a) | sections 34 and 36 of the Act in respect of the provision of any specified financial advisory service by the licensed financial adviser that is solely incidental to the distribution of the direct purchase insurance products; and [S 222/2023 wef 31/12/2021] | | (b) | section 22(5) of the Act in respect of the distribution of the direct purchase insurance products by any of the licensed financial adviser’s customer service officers. [S 222/2023 wef 31/12/2021] |
(2) For the purposes of paragraph (1), the conditions are —| (a) | other than by any specified advertisement, the licensed financial adviser must not, whether through a customer service officer, representative or otherwise, and whether in Singapore or elsewhere —| (i) | offer to sell to the public in Singapore or any section of the public in Singapore; | | (ii) | invite the public in Singapore or any section of the public in Singapore to purchase; or | | (iii) | solicit from the public in Singapore or any section of the public in Singapore offers to purchase, |
| any direct purchase insurance product; |
| | (b) | other than by any specified advertisement, the licensed financial adviser must not, whether through a customer service officer, representative or otherwise, and whether in Singapore or elsewhere —| (i) | offer to sell to a member of the public in Singapore; | | (ii) | invite any such member to purchase; or | | (iii) | solicit from any such member an offer to purchase, |
| any direct purchase insurance product, unless the member of the public has first requested for information on any life policy; |
| | (c) | the licensed financial adviser must not, whether through a customer service officer, representative or otherwise, omit to disclose any matter that is material to any statement or representation made in relation to any direct purchase insurance product to any client; and | | (d) | the licensed financial adviser must establish and maintain a register containing the following details of each appointed or provisional representative who distributes the direct purchase insurance products on behalf of the licensed financial adviser under paragraph (1)(a) and each customer service officer referred to in paragraph (1)(b):| (i) | name; | | (ii) | identity card number or passport number; | | (iii) | contact number; | | (iv) | the places of business of the licensed financial adviser at which the appointed or provisional representative or customer service officer distributes the direct purchase insurance products; | | (v) | the date on which the appointed or provisional representative or customer service officer commences distributing the direct purchase insurance products; | | (vi) | the date on which the appointed or provisional representative or customer service officer ceases distributing the direct purchase insurance products, where applicable. [S 169/2015 wef 31/03/2015] |
|
|
|
| Exemption of specified financial advisers for distribution of direct purchase insurance products |
39.—(1) Subject to the conditions in paragraph (2), a specified financial adviser is exempt from —| (a) | sections 34 and 36 of the Act (as they apply to a specified financial adviser by reason of section 20(2) of the Act) in respect of the provision of any specified financial advisory service that is solely incidental to the distribution of direct purchase insurance products on the specified financial adviser’s own behalf or on behalf of one or more direct life insurers, as the case may be; and [S 222/2023 wef 31/12/2021] | | (b) | section 22(5) of the Act in respect of the distribution of direct purchase insurance products by any of the specified financial adviser’s customer service officers on the specified financial adviser’s own behalf or on behalf of one or more direct life insurers, as the case may be. [S 222/2023 wef 31/12/2021] |
| (2) The conditions referred to in paragraph (1) are the same conditions specified in regulation 38(2), with each reference in that provision to a licensed financial adviser replaced with a reference to a specified financial adviser. [S 169/2015 wef 31/03/2015] |
|
| Exemption of appointed or provisional representative of exempt adviser for distribution of direct purchase insurance products |
40.—(1) Subject to the conditions in paragraph (2), when a financial adviser is exempt from sections 34 and 36 of the Act in respect of the provision of any specified financial advisory service that is solely incidental to the distribution of direct purchase insurance products, its appointed or provisional representative is also exempt from sections 34 and 36 of the Act (as they apply to an appointed or provisional representative by reason of section 46 of the Act) in respect of the provision of that service on behalf of the financial adviser.(2) The conditions referred to in paragraph (1) are that the appointed or provisional representative comply with the conditions specified in regulation 38(2)(a), (b) and (c), as modified in the following manner:| (a) | each reference in regulation 38(2)(a), (b) and (c) to a licensed financial adviser is replaced with a reference to the appointed or provisional representative; | | (b) | each reference in regulation 38(2)(a) and (b) to “whether through a customer service officer, representative or otherwise, and” is deleted; | | (c) | the reference in regulation 38(2)(c) to “, whether through a customer service officer, representative or otherwise,” is deleted. [S 169/2015 wef 31/03/2015] |
|
|
| Exemption of customer service officers of exempt adviser for distribution of direct purchase insurance products |
| 40A.—(1) Subject to the conditions in paragraph (2), when a financial adviser is exempt from sections 34 and 36 of the Act in respect of the provision of any specified financial advisory service that is solely incidental to the distribution of direct purchase insurance products, its customer service officer is also exempt from section 22(1) of the Act in respect of the provision of that service on behalf of the financial adviser. [S 222/2023 wef 31/12/2021] (2) The conditions referred to in paragraph (1) are that the customer service officer, in relation to the distribution of the direct purchase insurance products by the customer service officer —| (a) | complies with sections 27(1) (read with section 27(2) and (3) of the Act), 35(1) (read with section 35(5) of the Act) and (2), 42(1) (read with section 42(2) and (3) of the Act) and 43(1) and (2) of the Act, as modified in the following manner:| (i) | every reference in sections 35(1) and (2), 42(1) and 43(1) and (2) of the Act to a licensed financial adviser is replaced with a reference to the customer service officer; [S 222/2023 wef 31/12/2021] | | (ii) | every reference in section 27(1) and (2) of the Act to an appointed or provisional representative is replaced with a reference to the customer service officer; [S 222/2023 wef 31/12/2021] |
| | (b) | furnishes to the Authority any information about the distribution of the direct purchase insurance product as the Authority may require; and | | (c) | complies with the conditions specified in regulation 38(2)(a), (b) and (c), as modified in the following manner:| (i) | every reference in regulation 38(2)(a), (b) and (c) to a licensed financial adviser is replaced with a reference to the customer service officer; | | (ii) | every reference in regulation 38(2)(a) and (b) to “whether through a customer service officer, representative or otherwise, and” is deleted; | | (iii) | the reference in regulation 38(2)(c) to “, whether through a customer service officer, representative or otherwise,” is deleted. [S 169/2015 wef 31/03/2015] |
|
|
|
| Definitions of terms in regulations 38 to 40B |
40B. In regulations 38 to 40A and this regulation —| [Deleted by S 515/2019 wef 01/08/2019] |
| “client” includes a prospective client; |
“customer service officer”, in relation to a financial adviser, means any individual —| (a) | who is in the direct employment of the financial adviser, acting for the financial adviser or has an arrangement with the financial adviser to act for the financial adviser; | | (b) | who has undergone the training required by the financial adviser to distribute direct purchase insurance products on behalf of the financial adviser; and | | (c) | who is not an appointed representative or a provisional representative of the financial adviser; |
|
| “direct insurer” has the same meaning as in section 2 of the Insurance Act 1966; [S 222/2023 wef 31/12/2021] |
| “direct life insurer” means a direct insurer licensed under section 11 of the Insurance Act 1966 to carry on life business; [S 222/2023 wef 31/12/2021] |
“direct purchase insurance product” means —| (a) | a term life insurance product; | | (b) | a term life insurance product with a critical illness rider; | | (c) | a whole life participating insurance product; or | | (d) | a whole life participating insurance product with a critical illness rider, |
| which satisfies the requirements set out in Part 1 of the Fourth Schedule and is manufactured and offered by any direct life insurer; |
|
“distribute”, in relation to a direct purchase insurance product, means all or any of the following services:| (a) | provide any information on the direct purchase insurance product, including any of the following, to any client:| (i) | a product summary setting out the principal features of the direct purchase insurance product, which is prepared by the direct life insurer which manufactured and offered the direct purchase insurance product pursuant to such notice as may be issued by the Authority and published on the Authority’s website at http://www.mas.gov.sg; [S 515/2019 wef 01/08/2019] | | (ii) | a policy illustration setting out the projected benefits payable under the direct purchase insurance product, which is prepared by the direct life insurer which manufactured and offered the direct purchase insurance product pursuant to such notice as may be issued by the Authority and published on the Authority’s website at http://www.mas.gov.sg; [S 515/2019 wef 01/08/2019] | | (iii) | the name of the direct purchase insurance product; | | (iv) | any information on the direct life insurer on whose behalf the direct purchase insurance product is distributed; |
| | (b) | highlight any disclaimer, exclusion or warning of the direct purchase insurance product to any client; | | (c) | assist or prompt any client to provide any personal information on any proposal form for the purchase of the direct purchase insurance product or to complete such proposal form; | | (d) | collect any proposal form, cheque, or both for the purchase of the direct purchase insurance product by any client; | | (e) | provide any other assistance to any client to purchase the direct purchase insurance product; |
|
| “life business” has the same meaning as in section 3(1) of the Insurance Act 1966; [S 222/2023 wef 31/12/2021] |
| “life policy” has the same meaning as in the First Schedule to the Insurance Act 1966; [S 222/2023 wef 31/12/2021] |
| [Deleted by S 515/2019 wef 01/08/2019] |
“specified advertisement”, in relation to an offer to sell, an invitation to purchase, or a solicitation for an offer to purchase any direct purchase insurance product, means the dissemination or conveyance of any information on the direct purchase insurance product, or on the offer, invitation or solicitation, by any of the following means:| (a) | any written, printed or electronic communication, including by means of the Internet; | | (b) | radio, television or other mass media; | | (c) | a recorded telephone message; |
|
“specified financial adviser” is any financial adviser —| (a) | who —| (i) | is exempt from holding a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e) of the Act; [S 222/2023 wef 31/12/2021] | | (ii) | is not a direct life insurer; and | | (iii) | distributes direct purchase insurance products on behalf of one or more direct life insurers; or |
| | (b) | who —| (i) | is exempt from holding a financial adviser’s licence under section 20(1)(c) of the Act; [S 222/2023 wef 31/12/2021] | | (ii) | is a direct life insurer; and | | (iii) | distributes direct purchase insurance on the financial adviser’s own behalf or on behalf of one or more other direct life insurers; |
|
|
“specified financial advisory service” means —| (a) | advising others, either directly or through any publication or writing (other than by issuing or promulgating any research analysis or research report), concerning any direct purchase insurance product; or | | (b) | arranging any contract of insurance in respect of any direct purchase insurance product. [S 169/2015 wef 31/03/2015] |
|
|
| Division 2 — [Deleted by S 222/2023 wef 28/04/2023] |
| 40BA. [Deleted by S 222/2023 wef 28/04/2023] |
| Subdivision (1) — [Deleted by S 222/2023 wef 28/04/2023] |
| 40BB. [Deleted by S 222/2023 wef 28/04/2023] |
| 40BC. [Deleted by S 222/2023 wef 28/04/2023] |
| 40BD. [Deleted by S 222/2023 wef 28/04/2023] |
| Subdivision (2) — [Deleted by S 222/2023 wef 28/04/2023] |
| 40BE. [Deleted by S 222/2023 wef 28/04/2023] |
| 40BF. [Deleted by S 222/2023 wef 28/04/2023] |
| 40BG. [Deleted by S 222/2023 wef 28/04/2023] |
| Subdivision (3) — [Deleted by S 222/2023 wef 28/04/2023] |
| 40BH. [Deleted by S 222/2023 wef 28/04/2023] |
|
