Clause 8

An exempt financial adviser which is also a company registered as an insurance broker under the Insurance Act (Cap. 142) referred to in section 23(1)(c), must, at all times when it carries on the business of providing any financial advisory service —

comply with such financial requirements prescribed under section 104 or specified by the Authority by written notice to the exempt financial adviser; and

have in force a professional indemnity insurance policy the cover of which is consistent with such limit and deductible requirements as may be prescribed under section 104 or specified by the Authority by written notice to the exempt financial adviser, or such other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy.(2) Where an exempt financial adviser contravenes subsection (1), the Authority may, without prejudice to any other remedy available to the Authority under this Act —

permit the exempt financial adviser to continue providing any financial advisory service in accordance with such conditions as the Authority may impose; or

impose on the exempt financial adviser requirements specified in written directions, including requiring the exempt financial adviser —

to stop providing any financial advisory service other than for the purpose of giving effect to any agreement, transaction or arrangement entered into before the time of contravention of subsection (1); or

to submit such statements or reports on a weekly basis or at such other interval as the Authority may require, until the exempt financial adviser meets the financial requirements prescribed or specified under subsection (1)(a).(3) Any exempt financial adviser which, without reasonable excuse, contravenes subsection (1) or any condition imposed by the Authority under subsection (2)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.(4) A written notice issued under this section need not be published in the Gazette.”.