Singapore legislation
Clause 23
Clause 23
Exempt financial advisers and their representatives
(1)
Subject to subsection (10), the following persons shall be 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 (Cap. 19);
a merchant bank approved as a financial institution and approved to carry on a business of providing any financial advisory service under the Monetary Authority of Singapore Act (Cap. 186);
a company or society registered under the Insurance Act (Cap. 142); (d)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 (Cap. 108) to carry on a business of providing any financial advisory service; and
such other persons or classes of persons as may be prescribed.
(2)
The Authority may, at any time and subject to such conditions or restrictions as it may think fit to impose, approve an application made in writing by a securities exchange, futures exchange or recognised trading system provider to be exempt from holding a financial adviser’s licence if the Authority is of the opinion that the provision of any financial advisory service is not or will not be a significant business of the securities exchange, futures exchange or recognised trading system provider, as the case may be.
(3)
Any securities exchange, futures exchange or recognised trading system provider which contravenes any condition or restriction imposed by the Authority under subsection (2) shall be guilty of an offence.
(4)
Subject to this Act, sections 25 to 29, 32, 33, 34, 36 and 70 shall, with the necessary modifications, apply to an exempt financial adviser (other than a person referred to in subsection (1)(f) or (2)) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser.
(5)
Subject to this Act, sections 12, 25, 26, 27, 29, 33, 34, 36 and 70 shall, with the necessary modifications, apply to a representative of an exempt financial adviser (other than a person referred to in subsection (1)(f) or (2)) in respect of his acting as such as if he is a licensed representative.
(6)
The Authority may, on the application of an exempt financial adviser (other than a person referred to in subsection (1)(f) or (2)), exempt it or any of its representatives from complying with any of the provisions referred to in subsection (4) or (5), as the case may be.
(7)
The Authority may prescribe or specify in written directions the provisions of this Act that apply to the persons referred to in subsection (1)(f) or (2).
(8)
An exemption granted under subsection (2) or (6) 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 any of its representatives in relation to the provision of any financial advisory service as it deems fit.
(10)
The Authority may withdraw an exemption granted to any person under this section if the person contravenes any provision of this Act, or if 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 of an exemption under subsection (10) shall not operate so as to —
avoid or affect any agreement, transaction or arrangement, relating to any investment product entered into by the licensee, 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 referred to in paragraph (a).