Clause 10

A licensed financial adviser must establish and maintain a remuneration framework in conformity with subsection (2) for the purpose of —

reviewing and assessing the performance of its representatives and its supervisors; and

determining the remuneration of its representatives and supervisors.(2) Every remuneration framework in respect of representatives and supervisors of a licensed financial adviser must contain terms consistent with the requirements prescribed under section 104 or specified by the Authority by written notice, from time to time.(3) A licensed financial adviser must ensure that every agreement or arrangement entered into between the licensed financial adviser and each of its representatives or supervisors on or after the date of commencement of section 10 of the Financial Advisers (Amendment) Act 2015 (called in this section the commencement date) does not contain terms which are inconsistent with the remuneration framework referred to in subsection (1).(4) A licensed financial adviser must —

review and assess the performance, and determine the remuneration of its representatives and supervisors; and

pay remuneration accruing on or after the commencement date to its representatives and supervisors, in accordance with the remuneration framework referred to in subsection (1).(5) This section applies despite —

any written law in force on the commencement date or rule of law to the contrary; or

any agreement or arrangement entered into before, on or after the commencement date.(6) In carrying out any act in accordance with the remuneration framework referred to in subsection (1), the licensed financial adviser is not to be treated as having —

breached any rule of law or written law referred to in subsection (5)(a); or

breached any agreement or arrangement referred to in subsection (5)(b) entered into before the commencement date,and no such agreement or arrangement is taken to be brought to an end by frustration solely by reason of any act done in compliance with the remuneration framework or any requirements prescribed or specified under subsection (2).(7) Any licensed financial adviser which contravenes subsection (1), (3) or (4) 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.(8) The Authority may by regulations under section 104 prescribe —

the persons to whom this section does not apply; and

the circumstances in which this section does not apply.(9) A written notice issued under this section need not be published in the Gazette.(10) In this section, “remuneration” includes —

any monetary commission, incentive, benefit or reward; (b)any non-monetary incentive, benefit or reward; and

such other consideration as may be prescribed under section 104 or specified by the Authority by written notice.Independent sales audit unit39.—

A licensed financial adviser must have an independent sales audit unit comprising only individuals who have the qualification or experience and perform the duties prescribed under section 104 or specified by the Authority by written notice. (2) The licensed financial adviser must ensure that the independent sales audit unit reports only to —

the board of directors and chief executive officer of the licensed financial adviser; or

such other unit of the licensed financial adviser determined by the board of directors or the chief executive officer, which is independent from all units of the licensed financial adviser which provide financial advisory services.(3) The licensed financial adviser must ensure that the independent sales audit unit —

audits the quality of the financial advisory services provided by the representatives of the licensed financial adviser at such times and in such manner as may be prescribed under section 104 or specified by the Authority by written notice; (b)carries out such other functions and duties as may be prescribed under section 104 or specified by the Authority by written notice; and (c)applies the processes, criteria and methods prescribed (if any) under section 104 or specified by the Authority by written notice, in connection with the functions and duties in paragraphs (a) and (b). (4) Any licensed financial adviser which contravenes subsection (1), (2) or (3) 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. (5) The Authority may by regulations under section 104 prescribe —

the licensed financial adviser or class of licensed financial advisers to whom this section does not apply; and

the circumstances in which this section does not apply.(6) A written notice issued under this section need not be published in the Gazette.”.