28 June 2018

On 4 June 2018, the Monetary Authority of Singapore (“MAS”) issued a consultation paper on “Guidelines on Provision of Financial Advisory Service and Design of Advisory and Sales Forms”. The consultation closes on 5 July 2018.

MAS is seeking feedback on the proposed Guidelines on Provision of Financial Advisory Service and the proposed Guidelines on the Design of Advisory and Sales Forms.

Guidelines on Provision of Financial Advisory Service

Under the Financial Advisers Act (“FAA”), a person who is carrying on a business of providing financial advisory service is required to hold a financial adviser’s licence and comply with the relevant provisions of the FAA, unless otherwise exempted.

The proposed Guidelines on Provision of Financial Advisory Service will provide for a two-stage test in determining whether a person is deemed to be carrying on a business of providing financial advisory service. The first stage is to assess whether the activity in question amounts to providing financial advice. The second stage is to assess whether the person is carrying on a business of providing financial advice.

Guidelines on the Design of Advisory and Sales Forms

The proposed Guidelines on the Design of Advisory and Sales Forms will introduce key principles setting out what financial advisers should incorporate in the design of the forms used to conduct fact-finding and needs-analysis, and to make suitable product recommendations. It is proposed that financial advisers should use clear and concise language in their forms, organise and present information in a reader-friendly manner, and ensure that their forms facilitate
an efficient and effective advisory and sales process.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

 

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