Singapore legislation
Section 35
Section 35
False or misleading statements, etc., by licensed financial advisers
(1)
A licensed financial adviser must not make a false or misleading statement —
as to any amount that would be payable in respect of a proposed contract in respect of any investment product;
as to the effect of any provision of a contract or a proposed contract in respect of any investment product; or
in connection with the provision of any financial advisory service,if, when the licensed financial adviser makes the statement —
the licensed financial adviser does not care whether the statement is true or false; or
the licensed financial adviser knows or ought reasonably to have known that the statement is false or misleading.
(2)
A licensed financial adviser must not, in connection with the provision of any financial advisory service —
employ any device, scheme or artifice to defraud; or
engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, on any person.
(3)
Where, on or after 18 March 2013 —
a licensed financial adviser makes a false or misleading statement mentioned in subsection (1) and thereby contravenes that subsection;
a person, in reliance on that statement, does, or refrains from doing, a particular act;
it is reasonable, having regard to that statement and all other relevant circumstances, for that person to do, or refrain from doing (as the case may be) that act, in reliance on that statement; and
that person suffers any loss or damage as a result of doing, or refraining from doing, (as the case may be) that act,then, without affecting any other remedy available to that person, the licensed financial adviser is liable to pay damages to that person in respect of that loss or damage.
(4)
Where, on or after 18 March 2013 —
a licensed financial adviser contravenes subsection (2);
a person does, or refrains from doing, a particular act as a result of that contravention;
it is reasonable, having regard to that contravention and all other relevant circumstances, for that person to do, or refrain from doing (as the case may be) that act as a result of that contravention; and
that person suffers any loss or damage as a result of doing, or refraining from doing (as the case may be) that act,then, without affecting any other remedy available to that person, the licensed financial adviser is liable to pay damages to that person in respect of that loss or damage.
(5)
A reference in subsection (1) to the making of a false or misleading statement includes a reference to omitting to disclose any matter that is material to the statement.
(6)
Any licensed financial adviser who contravenes subsection (1) or (2) shall, even if a contract does not come into being, be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both.[26