Singapore legislation
Section 20
Section 20
Exempt financial advisers and their representatives
(1)
Subject to subsection (10), the following persons are exempt from holding a financial adviser’s licence to act as a financial adviser in Singapore in respect of any financial advisory service:
a bank licensed under the Banking Act 1970;
a merchant bank licenced under the Banking Act 1970;
a company or co-operative society licensed under the Insurance Act (Cap. 142);
a holder of a capital markets services licence under the Securities and Futures Act 2001;
a finance company which has been granted an exemption from section 25(2) of the Finance Companies Act 1967 to carry on a business of providing any financial advisory service;
an approved 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 an organised market, or to its performance as an approved holding company, as the case may be; and
such other persons or classes of persons as may be prescribed.
(2)
Subject to the provisions of this Act, sections 34 to 38, 41, 42, 43, 45, 47 and 48 apply, with the necessary modifications, to an exempt financial adviser (other than a person mentioned in subsection (1)(f) or (g)) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser.
(3)
Subject to the provisions of this Act, sections 34, 35 and 45 apply, with the necessary modifications, to —
a person mentioned in subsection (1)(f) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser; and
any of its representatives in respect of the person acting as such as if the person is a licensed financial adviser.
(4)
The reference in subsections (2) and (3) to specific sections of this Act do not include references to any regulations made under those sections unless the Authority prescribes that such regulations so apply.
(5)
The Authority may, on the application of an exempt financial adviser (other than a person mentioned in subsection (1)(g)), exempt the exempt financial adviser from complying with any of the provisions mentioned in subsection (2) or (3), as the case may be.
(6)
The Authority may, on the application of a person mentioned in subsection (1)(f), exempt any of its representatives from complying with any of the provisions mentioned in subsection (3).
(7)
The Authority may prescribe or specify in written directions the provisions of this Act that apply to the persons mentioned in subsection (1)(g) or their representatives.
(8)
An exemption granted under subsection (5) need not be published in the Gazette.
(9)
The Authority may prescribe or specify in written directions such conditions or restrictions as may be imposed on an exempt financial adviser or a representative of a person mentioned in subsection (1)(f) or (g) 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 fails to pay the annual fee under section 21;
the person contravenes any other provision of this Act; or
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 does not operate so as to —
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
affect any right, obligation or liability arising under any agreement, transaction or arrangement mentioned in paragraph (a).
(14)
Any exempt financial adviser which contravenes any condition or restriction imposed under subsection (9) 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 of a day during which the offence continues after conviction.
(15)
Any representative who contravenes any condition or restriction imposed under subsection (9) 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 of a day during which the offence continues after conviction.[23