Financial Advisers Act 2001 · 2020 Revised Edition · Part 3 · Conduct of Business
42. Negotiation and placement of risk with unlicensed insurer
Feedback & supportLast amended by an amending law of 2013. 2 amendments in all.
Subject to subsection (4), a licensed financial adviser must not, in the course of the licensed financial adviser’s business as such, negotiate any contract of insurance with an insurer (directly or indirectly) except with a licensed insurer acting in the course of his business as such.
financial adviser
“financial adviser” means a person who carries on a business of providing any financial advisory service, but does not include any person specified in the First Schedule;
The reference in subsection (1) to a contract of insurance does not apply to —
reinsurance;
business relating to risks outside Singapore; or
such other risks as may be prescribed.
In subsection (2)(b), “risks outside Singapore” means any risk which would be classified as an offshore policy as defined in the First Schedule to the Insurance Act 1966 had the risk been underwritten by a licensed insurer in Singapore.
licensed insurer
“licensed insurer” means an insurer who is for the time being licensed under section 11 of the Insurance Act 1966;
Where in any particular case the Authority is satisfied that, by reason of the exceptional nature of the risk or other exceptional circumstances, it is not reasonably practicable to comply with subsection (1), the Authority may permit any licensed financial adviser —
to negotiate the contract of insurance with such insurer as the licensed financial adviser sees fit; and
if in the opinion of the Authority the case requires it, to effect the contract of insurance and receive the premium in Singapore on behalf of such insurer.
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 3 years or to both.[33