—(1) A licensee shall disclose, to every client and prospective client, all material information relating to any designated investment product that the licensee recommends to such person, including —
the terms and conditions of the designated investment product;
the benefits to be, or likely to be, derived from the designated investment product, and the risks that may arise from the designated investment product;
the premium, costs, expenses, fees or other charges that may be imposed in respect of the designated investment product;
where the designated investment product is a unit in a collective investment scheme, the name of the manager of the scheme and the relationship between the licensee and the manager;
where the designated investment product is a life policy, the name of the registered insurer under the life policy and the relationship between the licensee and the insurer; and
such other information as the Authority may prescribe.
(2) The Authority may specify, in written directions, the information required to be disclosed under subsection (1)(a), (b) or (c), and the form or manner in which information relating to any designated investment product may be disclosed to any client of a licensee .
(3) The Authority may, in writing, require a licensee to submit to it —
all written communication which sets out information relating to any designated investment product for the time being in use by the licensee; and
where any written communication referred to in paragraph (a) is not in English, a translation of such written communication in English.
(4) If it appears to the Authority, after affording the licensee an opportunity to make representations orally or in writing, that any written communication submitted under subsection (3) contravenes any provision of this Act, or is in any respect likely to mislead, the Authority may, in writing, direct the licensee to discontinue the use, in Singapore, of the written communication immediately or from a specified date.
(5) Any licensee who —
contravenes subsection (1);
fails to comply with a requirement imposed by the Authority under subsection (3); or
fails to comply with a direction of the Authority under subsection (4),
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.
(6) In this section —
“client”, in relation to a designated investment product which is a group life policy under which any person insured is liable to pay the premium, includes every person insured under the group life policy;
“designated investment product” means a unit in a collective investment scheme, a life policy (including a group life policy), or such other investment product as the Authority may prescribe;
“written communication” includes a brochure, a leaflet, a circular or an advertising matter, whether in electronic, print or other form.
[Insurance Intermediaries, ss. 5, 9; SIA, s. 50]