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Contents

Long Title

Part I PRELIMINARY

Part II LICENSING OF FINANCIAL ADVISERS AND THEIR REPRESENTATIVES

Part III CONDUCT OF BUSINESS

Division 1 — General

Division 2 — Life Insurance

Division 3 — Securities

Division 4 — Register of Interests in Securities

Part IV ACCOUNTS AND AUDIT

Division 1 — Accounts

Division 2 — Audit

Part V POWERS OF AUTHORITY

Part VI SUPERVISION AND INVESTIGATION

Division 1 — General

Division 2 — Inspection Powers of Authority

Division 3 — Investigative Powers of Authority

Part VII ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

Part VIII OFFENCES

Part IX APPEALS

Part X MISCELLANEOUS

FIRST SCHEDULE Excluded Financial Advisers

SECOND SCHEDULE Types of Financial Advisory Service

THIRD SCHEDULE Specified Provisions

Legislative Source Key

Legislative History

Comparative Table

 
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PART II
LICENSING OF FINANCIAL ADVISERS AND THEIR REPRESENTATIVES
Need for financial adviser’s licence
6.
—(1)  No person shall act as a financial adviser in Singapore in respect of any financial advisory service unless he —
(a)
is authorised to do so in respect of that financial advisory service by a financial adviser’s licence; or
(b)
is an exempt financial adviser.
(2)  For the purposes of subsection (1), a person shall be deemed to be acting as a financial adviser in Singapore if he engages in any activity or conduct that is intended to or likely to induce the public in Singapore or any section thereof to use any financial advisory service provided by the person, whether or not the activity or conduct is intended to or likely to have that effect outside Singapore.
(3)  In determining whether a person is engaging in any activity or conduct that is intended to or likely to have the effect referred to in subsection (2), regard shall be had to such considerations as the Authority may prescribe.
(4)  Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $7,500 for every day or part thereof during which the offence continues after conviction.
[SIA, s. 26; Aust. Corporations 2001, Clause 911D]
Need for representative’s licence
7.
—(1)  No person shall act as or hold himself out to be a representative of a financial adviser unless the following conditions are satisfied:
(a)
that person is an individual;
(b)
where the financial adviser is a licensed financial adviser, that person holds a representative’s licence that is related to that financial adviser; and
(c)
where the financial adviser is an exempt financial adviser, that person is a representative of that financial adviser.
[2/2005]
(2)  Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
[SIA, s. 27]
Application for grant or renewal of licence
8.
—(1)  An application for the grant or renewal of a licence shall be —
(a)
made to the Authority in such form and manner as may be prescribed;
(b)
in the case of an application for the renewal of a licence, made not later than one month or such other period before the expiry of the licence (referred to in this section as the late renewal period) as the Authority may prescribe; and
(c)
accompanied by a non-refundable application fee of a prescribed amount, which shall be paid in the manner specified by the Authority.
[2/2005]
(2)  The Authority may require an applicant to furnish it with such information or documents as it considers necessary in relation to the application.
(3)  An application for the grant of a representative’s licence shall be supported by a person who is, or who has submitted an application to be, a licensed financial adviser.
[15/2003]
(3A)  An application for the renewal of a representative’s licence shall be supported by a person who is a licensed financial adviser.
[15/2003]
(4)  An application for the grant of a representative’s licence shall be deemed to be withdrawn with effect from the date on which the person who supported the application —
(a)
withdraws his support in writing;
(b)
withdraws his application for a financial adviser’s licence; or
(c)
has his application for a financial adviser’s licence refused by the Authority.
(5)  An application for the renewal of a representative’s licence shall be deemed to be withdrawn with effect from the date on which the person who supported the application withdraws his support in writing.
(6)  Where a person submits an application for the renewal of his licence before or during the late renewal period, the licence shall continue in force until the date on which the licence is renewed or the application for its renewal is refused, as the case may be.
[15/2003]
(7)  Where a person submits an application for the renewal of his licence during the late renewal period, the Authority may impose a late renewal fee not exceeding $100 for every day or part thereof that the application for renewal is late, subject to a maximum of $3,000.
[SF Bill, Clause 84]
Grounds for refusal to grant or renew financial adviser’s licence
9.
—(1)  The Authority may refuse an application for the grant or renewal of a financial adviser’s licence if —
(a)
the applicant is not a corporation;
(b)
the applicant is unable to meet or continue to meet such minimum financial requirements or such other requirements as the Authority may prescribe, either generally or specifically;
(c)
the applicant does not have in force a professional indemnity insurance policy, the cover of which is consistent with such limit and deductible requirements as may be prescribed, or any other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy;
(d)
the applicant has not furnished the Authority with such information or documents as may be required under section 8(2), or such other information or documents relating to it or any person employed by or associated with it for the purposes of its business or relating to any circumstance likely to affect its manner of conducting business as may be required by the Authority;
(da)
any information or document that is furnished by the applicant to the Authority is false or misleading;
(e)
the applicant or any of its substantial shareholders is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
(f)
a receiver, receiver and manager, judicial manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the applicant or any of its substantial shareholders;
(g)
the applicant or any of its substantial shareholders has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation;
(h)
execution against the applicant or any of its substantial shareholders in respect of a judgment debt has been returned unsatisfied in whole or in part;
(i)
the Authority is not satisfied as to the educational qualification or experience of the officers or employees of the applicant who are to perform duties in connection with the holding of the financial adviser’s licence;
(j)
the Authority has reason to believe that the applicant, or any of its officers or employees, will not perform the functions of a financial adviser efficiently, honestly or fairly;
(k)
a prohibition order under section 59 has been made by the Authority, and remains in force, against the applicant;
(l)
the applicant or any of its substantial shareholders or officers —
(i)
has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it or he acted fraudulently or dishonestly; or
(ii)
has been convicted of an offence under this Act;
(m)
the applicant fails to satisfy the Authority —
(i)
that it is a fit and proper person to be licensed; or
(ii)
that all of its officers, employees and substantial shareholders are fit and proper persons;
(n)
the Authority has reason to believe that the applicant may not act in the best interests of its clients, having regard to the reputation, character, financial integrity and reliability of the applicant or any of its officers, employees or substantial shareholders;
(o)
the Authority is not satisfied as to —
(i)
the financial standing of the applicant or any of its substantial shareholders;
(ii)
the manner in which the applicant’s business is to be conducted; or
(iii)
the record of past performance or expertise of the applicant, having regard to the nature of the business which the applicant may carry on in connection with the holding of the licence;
(p)
there are other circumstances which are likely —
(i)
to lead to the improper conduct of business by the applicant, or any of its officers, employees or substantial shareholders; or
(ii)
to reflect discredit on the manner of conduct of the business of the applicant or any of its substantial shareholders; or
(q)
the Authority is of the opinion that it would be contrary to the public interest to grant or renew the licence.
[15/2003; 2/2005]
(2)  For the purposes of subsection (1)(c) —
(a)
the Authority may prescribe different amounts of cover under a professional indemnity insurance policy according to the activities undertaken or to be undertaken by any applicant; and
(b)
“professional indemnity insurance policy” means a contract of insurance with an insurer under which a person is indemnified in respect of the liabilities arising out of or in the course of his business as a financial adviser.
(3)  Subject to subsection (4), the Authority shall not refuse an application for the grant or renewal of a financial adviser’s licence without giving the applicant an opportunity to be heard.
(4)  The Authority may refuse an application for the grant or renewal of a financial adviser’s licence on any of the following grounds without giving the applicant an opportunity to be heard:
(a)
the applicant is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
(b)
a receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to or in respect of any property of the applicant;
(c)
a prohibition order under section 59 has been made by the Authority, and remains in force, against the applicant;
(d)
the applicant has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.
[15/2003]
[Insurance Intermediaries, s. 17; SF Bill Clause 86]
Failure to maintain minimum financial requirements or professional indemnity insurance policy
10.
—(1)  A licensed financial adviser shall —
(a)
maintain, at all times during the currency of its licence, such minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b); and
(b)
have in force, at all times during the currency of its licence, a professional indemnity insurance policy, the cover of which is consistent with such limit and deductible requirements as may be prescribed, or any other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy, under section 9(1)(c).
[15/2003]
(2)  Where a licensed financial adviser contravenes subsection (1), the Authority may, without prejudice to any other remedy available to the Authority under this Act —
(a)
permit the financial adviser to continue to act as such, subject to such conditions as the Authority may impose; or
(b)
impose such requirements as may be specified in written directions, including requiring the financial adviser —
(i)
to cease to act as a financial adviser other than for the purpose of giving effect to any agreement, transaction or arrangement that is permitted by or by virtue of its licence, and that has been entered into before the time of its failure to comply with the minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b);
(ii)
to cease to act as a financial adviser other than for the purpose of giving effect to any agreement, transaction or arrangement that is permitted by or by virtue of its licence, and that has been entered into before the time of its failure to have in force a professional indemnity insurance policy, or such other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy, under section 9(1)(c); or
(iii)
to submit such statements or reports on a weekly basis or at such other intervals as the Authority may require until it meets the minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b).
[15/2003]
(3)  Any licensed financial adviser which, without reasonable excuse, contravenes subsection (1) or any condition imposed by the Authority under subsection (2)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
[15/2003]
[FTA, s. 24A]
Grounds for refusal to grant or renew representative’s licence
11.
—(1)  The Authority may refuse an application for the grant or renewal of a representative’s licence if —
(a)
the applicant is not an individual;
(b)
the applicant is not a fit and proper person to be licensed;
(c)
the applicant has not furnished the Authority with such information or documents as may be required under section 8(2);
(ca)
any information or document that is furnished by the applicant to the Authority is false or misleading;
(d)
the applicant is an undischarged bankrupt, whether in Singapore or elsewhere;
(e)
the applicant has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation;
(f)
execution against the applicant in respect of a judgment debt has been returned unsatisfied in whole or in part;
(g)
the Authority is not satisfied as to the educational qualification or experience of the applicant, having regard to the nature of the duties of a licensed representative;
(h)
the Authority has reason to believe that the applicant will not perform the functions of a representative efficiently, honestly or fairly;
(i)
a prohibition order under section 59 has been made by the Authority, and remains in force, against the applicant;
(j)
the applicant —
(i)
has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that he acted fraudulently or dishonestly; or
(ii)
has been convicted of an offence under this Act;
(k)
the Authority has reason to believe that the applicant may not act in the best interests of the clients of the financial adviser of which he is a representative, having regard to his reputation, character, financial integrity and reliability;
(l)
the Authority is not satisfied as to —
(i)
the financial standing of the applicant; or
(ii)
the record of past performance or expertise of the applicant;
(m)
there are other circumstances which are likely to lead to the improper conduct of business by, or which reflect discredit on the manner of conduct of the business of, the applicant or any person employed by or associated with him for the purpose of his business;
(n)
the applicant is in arrears in the payment of such contributions on his own behalf as a self-employed person to the Central Provident Fund as are required under the Central Provident Fund Act (Cap. 36); or
(o)
the Authority is of the opinion that it would be contrary to the public interest to grant or renew the licence.
[2/2005]
(2)  The Authority may, for the purposes of subsection (1)(g), specify in written directions the qualifications to be obtained by any class or description of applicants for representative’s licences.
(3)  Subject to subsection (4), the Authority shall not refuse an application for the grant or renewal of a representative’s licence without giving the applicant an opportunity to be heard.
(4)  The Authority may refuse an application for the grant or renewal of a representative’s licence on any of the following grounds without giving the applicant an opportunity to be heard:
(a)
the applicant is an undischarged bankrupt, whether in Singapore or elsewhere;
(b)
a prohibition order under section 59 has been made by the Authority, and remains in force, against the applicant;
(c)
the applicant has been convicted, whether in Singapore or elsewhere, of an offence —
(i)
involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly; and
(ii)
punishable with imprisonment for a term of 3 months or more.
[15/2003]
[HK SF Bill, Clause 119]
Representative to act for only one financial adviser
12.
—(1)  Subject to subsection (2), no licensed representative shall, at any one time, be a representative of more than one financial adviser.
(2)  A licensed representative may be a representative of more than one financial adviser if the financial advisers are related corporations.
(3)  Any licensed representative who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
Grant or renewal of licence
13.
—(1)  The Authority may grant or renew any licence, subject to such conditions or restrictions as it thinks fit.
(2)  Without prejudice to the generality of subsection (1), the Authority may —
(a)
in granting or renewing any licence, impose conditions or restrictions with respect to the type of financial advisory service which may or may not be provided by the licensee, described in such manner as the Authority may consider appropriate; or
(b)
in granting or renewing a representative’s licence, relate the representative’s licence to the financial adviser which supported the application for the licence.
(3)  The Authority may at any time add to, vary or revoke any condition or restriction of a licence.
(4)  Any licensed financial adviser which contravenes any condition or restriction imposed by the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
(5)  Any licensed representative who contravenes any condition or restriction imposed by the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
[SIA, s. 33]
Licence fees
14.
—(1)  Every licensee shall pay to the Authority such licence fees as may be prescribed.
(2)  Any licence fee paid to the Authority under this Act shall not be refunded or remitted if —
(a)
during the period to which the licence fee relates, the licence is revoked or suspended or lapses under section 19;
(b)
the licence fee is paid in relation to an application for the renewal of a licence and such application is withdrawn after the date on which, but for its renewal, the licence would have expired;
(c)
during the period to which the licence fee relates, the licensee fails or ceases to provide any financial advisory service; or
(d)
a prohibition order has been made against the licensee under section 59.
(3)  Subject to subsection (2), the Authority may, where it considers appropriate, refund or remit the whole or part of any licence fee paid or payable to it.
[15/2003]
[SF Bill, Clause 85]
Period of licence
15.
—(1)  Subject to subsection (2) and section 8(6), a licence shall be in force for a period of 3 years, or such other period as the Authority may specify in writing to the licensee, from the date of its issue under this Act.
(2)  A licence that has been renewed in accordance with the provisions of this Part shall continue in force for a period of 3 years, or such other period as the Authority may specify in writing to the licensee, from the date immediately following that on which, but for its renewal, the licence would have expired.
[SF Bill, Clause 89]
Variation of licence
16.
—(1)  A licensee may apply to the Authority, in such form and manner as may be prescribed, to vary his licence —
(a)
by adding one or more types of financial advisory service authorised to be provided by his licence; or
(b)
by adding one or more types of investment product in respect of which he provides any financial advisory service.
[15/2003]
(1A)  The Authority may require an applicant to furnish it with such information or documents as it considers necessary in relation to the application.
[15/2003]
(2)  An application under subsection (1) —
(a)
shall be accompanied by a non-refundable application fee of such amount as may be prescribed, which shall be paid in the manner specified by the Authority; and
(b)
if made in respect of a representative’s licence, shall be supported by a person who is —
(i)
a licensed financial adviser in respect of the type or types of financial advisory service or investment product (as the case may be) to be added to the representative’s licence; or
(ii)
a licensed financial adviser which has applied under subsection (1) to add to its licence the type or types of financial advisory service or investment product (as the case may be) to be added to the representative’s licence.
[15/2003; 2/2005]
(2A)  An application under subsection (1), if made in respect of a representative’s licence, shall be deemed to be withdrawn with effect from the date on which the licensed financial adviser which supported the application —
(a)
withdraws its support in writing;
(b)
withdraws its application to add to its licence the type or types of financial advisory service or investment product (as the case may be) to be added to the representative’s licence; or
(c)
has its application to add to its licence the type or types of financial advisory service or investment product (as the case may be) to be added to the representative’s licence refused by the Authority.
[15/2003]
(3)  The Authority may approve an application under subsection (1) subject to such conditions or restrictions as the Authority thinks fit, or may refuse the application on any of the grounds set out in section 9(1) or 11(1), as the case may be.
[2/2005]
(4)  The Authority shall not refuse an application under subsection (1) without giving the applicant an opportunity to be heard.
[15/2003]
[SF Bill, Clause 90]
False statements in relation to application for grant, renewal or variation of licence
17.  Any person who, in connection with an application for the grant, renewal or variation of a licence —
(a)
without reasonable excuse, makes any statement which is false or misleading in a material particular; or
(b)
without reasonable excuse, omits to state any matter or thing without which the application is misleading in a material respect,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
[2/2005]
[SF Bill, Clause 92]
Notification of change in particulars, etc.
18.
—(1)  Where —
(a)
a licensed financial adviser ceases to act as a financial adviser; or
(b)
a change occurs in any matter in relation to a licensed financial adviser, particulars of which are required to be entered in the register of licensees under section 63,
the licensed financial adviser shall, not later than 14 days after the occurrence of that event, furnish particulars of the event to the Authority in the prescribed form.
(2)  Where —
(a)
a licensed representative ceases to be the representative of a licensed financial adviser; or
(b)
a change occurs in any matter in relation to a licensed representative, particulars of which are required to be entered in the register of licensees under section 63,
the licensed representative shall, not later than 14 days after the occurrence of that event, furnish particulars of the event to the Authority in the prescribed form.
(3)  A person who ceases to act as a licensed financial adviser or a licensed representative, as the case may be, shall return the licence to the Authority within 14 days of the date of the cessation.
[15/2003]
(4)  Any person who, without reasonable excuse, contravenes this section shall be guilty of an offence.
[SF Bill, Clause 93]
Lapsing, revocation, suspension and expiry of licence
19.
—(1)  A licence shall lapse —
(a)
in the case of a licensed financial adviser, if it is wound up or otherwise dissolved, whether in Singapore or elsewhere;
(b)
in the case of a licensed representative, if he dies or becomes mentally incapacitated; or
(c)
in the event of such other occurrence or in such other circumstances as may be prescribed.
(2)  The Authority may revoke a licence —
(a)
in the case of a licensed financial adviser, if —
(i)
there exists a ground on which the Authority may refuse an application under section 9(1);
(ii)
the financial adviser has contravened any provision of this Act, or any condition or restriction imposed or any written direction given by the Authority under this Act;
(iii)
it appears to the Authority that the financial adviser has failed to satisfy any of its obligations under or arising from this Act;
(iv)
it appears to the Authority that the financial adviser is carrying on its business in a manner that is —
(A)
likely to be detrimental to its clients; or
(B)
contrary to the public interest;
(iva)
any information or document that is furnished by the financial adviser to the Authority is false or misleading; or
(v)
the financial adviser fails or ceases to carry on the business for which it was licensed; or
(b)
in the case of a licensed representative, if —
(i)
there exists a ground on which the Authority may refuse an application under section 11(1);
(ii)
the representative has contravened any provision of this Act, or any condition or restriction imposed or any written direction given by the Authority under this Act;
(iii)
it appears to the Authority that the representative has failed to satisfy any of his obligations under or arising from this Act;
(iv)
it appears to the Authority that the representative is carrying on his functions in a manner that is —
(A)
likely to be detrimental to the clients of the financial adviser of which he is a representative; or
(B)
contrary to the public interest;
(iva)
any information or document that is furnished by the representative to the Authority is false or misleading;
(v)
the representative fails or ceases to perform the functions for which he was licensed; or
(vi)
the licence of the financial adviser of which he is a representative is revoked.
[2/2005]
(3)  The Authority may, if it considers it desirable to do so —
(a)
suspend a licence for a specific period instead of revoking it under subsection (2); and
(b)
at any time extend or revoke the suspension.
(4)  Subject to subsection (5), the Authority shall not revoke or suspend a licence under subsection (2) or (3), respectively, without giving the licensee an opportunity to be heard.
(5)  The Authority may revoke or suspend a licence under subsection (2) or (3), respectively, without giving the licensee an opportunity to be heard —
(a)
in the case of a licensed financial adviser, on any of the following grounds:
(i)
the licensee is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
(ii)
a receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to or in respect of any property of the licensee;
(iii)
a prohibition order under section 59 has been made by the Authority, and remains in force, against the licensee;
(iv)
the licensee has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly; or
(b)
in the case of a licensed representative, on any of the following grounds:
(i)
the licensee is an undischarged bankrupt, whether in Singapore or elsewhere;
(ii)
a prohibition order under section 59 has been made by the Authority, and remains in force, against the licensee;
(iii)
the licensee has been convicted, whether in Singapore or elsewhere, of an offence —
(A)
involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly; and
(B)
punishable with imprisonment for a term of 3 months or more.
[15/2003]
(6)  A person whose licence is revoked or suspended shall cease to act as a financial adviser or representative, as the case may be, from the date on which the revocation or suspension takes effect.
(7)  A financial adviser whose licence is revoked or suspended shall immediately inform all of its representatives, in writing, of such revocation or suspension.
(8)  Every representative who has been informed of the revocation or suspension of the licence of the financial adviser of which he is a representative shall —
(a)
in the case of revocation, immediately cease to act as a representative of the financial adviser; or
(b)
in the case of suspension, immediately cease to act as a representative of the financial adviser during the period of the suspension.
(9)  Any lapsing, revocation, suspension or expiry of a licence shall not operate so as to —
(a)
avoid or affect any agreement, transaction or arrangement, relating to any investment product, entered into by the licensee, whether the agreement, transaction or arrangement was entered into before or after the lapsing, revocation, suspension or expiry of the licence; or
(b)
affect any right, obligation or liability arising under any agreement, transaction or arrangement referred to in paragraph (a).
(10)  Any person who continues to act as a financial adviser in contravention of subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.
(11)  Any person who continues to act as a representative in contravention of subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
(12)  Any financial adviser which contravenes subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.
(13)  Any representative who contravenes subsection (8) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
[SF Bill, Clause 95]
Right of appeal
20.  Any person who is aggrieved —
(a)
by the refusal of the Authority to grant a licence to him, or to renew or vary his licence; or
(b)
by the revocation or suspension of his licence by the Authority,
may, within 30 days of the refusal, revocation or suspension, appeal in writing to the Minister.
[2/2005]
[SF Bill, Clause 98]
Use of words “financial adviser” or “life insurance broker”
21.
—(1)  No person, other than —
(a)
a licensed financial adviser;
(b)
an exempt financial adviser; or
(c)
a person, or a person belonging to a class of persons, approved by the Authority,
shall —
(i)
use the words “financial adviser” in any language, or any other word indicating that that person carries on business as a financial adviser, in the name, description or title under which it carries on business in Singapore; or
(ii)
make any representation to such effect in any bill head, letter paper, notice, advertisement, publication or writing, whether in electronic, print or other form.
(2)  Nothing in this section shall prohibit —
(a)
a licensed representative of a licensed financial adviser; or
(b)
a representative of an exempt financial adviser ,
from using the words “financial adviser” together with the word “representative” or any other word indicating that he is a representative of a financial adviser.
(3)  No person, other than —
(a)
a licensed financial adviser which is authorised by its licence to provide any financial advisory service in respect of life policies;
(b)
an exempt financial adviser which provides any financial advisory service in respect of life policies; or
(c)
a person, or a person belonging to a class of persons, approved by the Authority,
shall —
(i)
use the words “life insurance broker” or any of its derivatives in any language, or any other word indicating that that person carries on business of providing any financial advisory service in respect of life policies, in the name, description or title under which he carries on business in Singapore; or
(ii)
make any representation to such effect in any bill head, letter paper, notice, advertisement, publication or writing, whether in electronic, print or other form.
(4)  Nothing in this section shall prohibit —
(a)
a licensed representative of a licensed financial adviser which is authorised by his licence to provide any financial advisory service in respect of life policies; or
(b)
a representative of an exempt financial adviser which provides any financial advisory service in respect of life policies,
from using the words “life insurance broker” together with the word “representative” or any other word indicating that he is a representative of a financial adviser providing any financial advisory service in respect of life policies.
(5)  Any person who contravenes subsection (1) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500 and, in the case of a continuing offence, to a further fine not exceeding $1,250 for every day or part thereof during which the offence continues after conviction.
[Insurance Intermediaries, s. 14]
Holding out as financial adviser
22.
—(1)  No person shall hold himself out to be a financial adviser unless he is a licensed financial adviser, an exempt financial adviser or a person specified in the First Schedule.
(2)  Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $7,500 for every day or part thereof during which the offence continues after conviction.
[Insurance Intermediaries, s. 13]
Exempt financial advisers and their representatives
23.
—(1)  Subject to subsection (10), the following persons shall be exempt from holding a financial adviser’s licence to act as a financial adviser in Singapore in respect of any financial advisory service:
(a)
a bank licensed under the Banking Act (Cap. 19);
(b)
a merchant bank approved as a financial institution and approved to carry on a business of providing any financial advisory service under the Monetary Authority of Singapore Act (Cap. 186);
(c)
a company or society registered under the Insurance Act (Cap. 142);
(d)
a holder of a capital markets services licence under the Securities and Futures Act (Cap. 289);
(e)
a finance company which has been granted an exemption from section 25(2) of the Finance Companies Act (Cap. 108) to carry on a business of providing any financial advisory service;
(ea)
a securities exchange, a futures exchange, a recognised market operator, or an approved holding company, in respect of the provision of any financial advisory service that is solely incidental to its operation of a securities market, a futures market, or to its performance as an approved holding company, as the case may be; and
(f)
such other persons or classes of persons as may be prescribed.
[2/2005]
(2)  [Deleted by Act 2 of 2005]
(3)  [Deleted by Act 2 of 2005]
(4)  Subject to the provisions of this Act, sections 25 to 29, 32, 33, 34 and 36 shall apply, with the necessary modifications, to an exempt financial adviser (other than a person referred to in subsection (1)(ea) or (f)) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser.
[2/2005]
(5)  Subject to the provisions of this Act, sections 12, 25, 26, 27, 29, 33, 34 and 36 shall apply, with the necessary modifications, to a representative of an exempt financial adviser (other than a person referred to in subsection (1)(ea) or (f)) in respect of his acting as such as if he is a licensed representative.
[2/2005]
(5A)  Subject to the provisions of this Act, sections 25, 26 and 36 shall apply, with the necessary modifications, to —
(a)
a person referred to in subsection (1)(ea) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser; and
(b)
any of its representatives in respect of his acting as such as if he is a licensed representative.
[2/2005]
(5B)  Subject to the provisions of this Act, section 70 shall apply, with the necessary modifications, to —
(a)
an exempt financial adviser in respect of its business of providing any financial advisory service as if it is a licensed financial adviser; and
(b)
a representative of an exempt financial adviser in respect of his acting as such as if he is a licensed representative.
[2/2005]
(5C)  For the avoidance of doubt, references in subsections (4), (5), (5A) and (5B) to specific sections in this Act that apply to exempt financial advisers or their representatives, respectively, do not include references to any regulations made under those sections unless the Authority prescribes that such regulations so apply.
[2/2005]
(6)  The Authority may, on the application of an exempt financial adviser (other than a person referred to in subsection (1)(f)), exempt it or any of its representatives from complying with any of the provisions referred to in subsection (4), (5), (5A) or (5B), as the case may be.
[15/2003; 2/2005]
(7)  The Authority may prescribe or specify in written directions the provisions of this Act that apply to the persons referred to in subsection (1)(f) or their representatives.
[2/2005]
(8)  An exemption granted under subsection (6) need not be published in the Gazette.
[2/2005]
(9)  The Authority may prescribe or specify in written directions such conditions or restrictions as may be imposed on an exempt financial adviser or any of its representatives in relation to the provision of any financial advisory service as the Authority thinks fit.
(10)  The Authority may withdraw an exemption granted to any person under this section if the person contravenes any provision of this Act, or if the Authority considers it necessary in the public interest.
(11)  Where the Authority withdraws an exemption granted to any person under this section, the Authority need not give the person an opportunity to be heard.
(12)  An exempt financial adviser which is aggrieved by the decision of the Authority to withdraw an exemption granted to it under this section may, within 30 days of the decision, appeal in writing to the Minister.
(13)  A withdrawal under subsection (10) of an exemption granted to any person shall not operate so as to —
(a)
avoid or affect any agreement, transaction or arrangement, relating to any investment product entered into by the person, whether the agreement, transaction or arrangement was entered into before or after the withdrawal of the exemption; or
(b)
affect any right, obligation or liability arising under any agreement, transaction or arrangement referred to in paragraph (a).
[SF Bill, Clause 99]
Annual fees
23A.
—(1)  Every exempt financial adviser and representative of an exempt financial adviser shall pay to the Authority such annual fee as may be prescribed and in such manner as may be specified by the Authority.
[2/2005]
(2)  Any annual fee paid by an exempt financial adviser or a representative of an exempt financial adviser to the Authority under subsection (1) shall not be refunded or remitted if —
(a)
during the period to which the annual fee relates, the exemption of the exempt financial adviser or representative, as the case may be, is withdrawn;
(b)
during the period to which the annual fee relates, the exempt financial adviser or representative, as the case may be, fails or ceases to provide any financial advisory service; or
(c)
a prohibition order has been made against the exempt financial adviser or representative, as the case may be, under section 59.
[2/2005]
(3)  Subject to subsection (2), the Authority may, where it considers appropriate, refund or remit the whole or part of any annual fee paid or payable to it.
[2/2005]