Singapore legislation
Clause 10
Clause 10
Failure to maintain minimum financial requirements or professional indemnity insurance policy
(1)
A licensed financial adviser which —
becomes aware of any inability by it to comply with the minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b); or
fails to have in force a professional indemnity insurance policy under section 9(1)(c),shall immediately notify the Authority, in writing, of such inability or failure.
(2)
Where the Authority becomes aware —
of any inability by a licensed financial adviser to comply with the minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b); or
that a licensed financial adviser has failed to have in force a professional indemnity insurance policy under section 9(1)(c),the Authority may, whether or not the financial adviser has notified the Authority under subsection (1) —
suspend the financial adviser’s licence for such period as it may consider appropriate; (ii)permit the financial adviser to continue to act as such, subject to such conditions as the Authority may impose; or
require the financial adviser to comply with such written directions as the Authority may impose and, in particular, require the financial adviser —
to cease to act as a financial adviser other than for the purpose of giving effect to any agreement, transaction or arrangement permitted by or by virtue of its licence, and entered into before the time when it became aware of its inability to comply with the minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b); (B)to cease to act as a financial adviser other than for the purpose of giving effect to any agreement, transaction or arrangement permitted by or by virtue of its licence, and entered into before the time of its failure to have in force a professional indemnity insurance policy under section 9(1)(c); or
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).
(3)
For the purposes of subsection (1), a licensed financial adviser shall be deemed to be aware of an inability to comply with the minimum financial requirements or such other requirements as may be prescribed under section 9(1)(b) if any of its officers is so aware or would, with the exercise of reasonable diligence, have been aware of such inability.
(4)
Any licensed financial adviser which, without reasonable excuse, contravenes subsection (1) or any condition imposed by the Authority under subsection (2)(ii) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.