Financial Advisers Act 2001 · 2020 Revised Edition · Part 3 · Conduct of Business
48. Independent sales audit unit
Feedback & supportLast amended by an amending law of 2015.
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 135 or specified by the Authority by written notice.
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 licensed financial adviser must ensure that the independent sales audit unit reports only to —
independent sales audit unit
“independent sales audit unit”, in relation to a licensed financial adviser, means a unit of the licensed financial adviser which —(a)audits the quality of the provision of financial advisory services by representatives of the licensed financial adviser; and(b)is independent from all units of the licensed financial adviser which provide financial advisory services;
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.
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 135 or specified by the Authority by written notice;
carries out such other functions and duties as may be prescribed under section 135 or specified by the Authority by written notice; and
applies the processes, criteria and methods prescribed (if any) under section 135 or specified by the Authority by written notice, in connection with the functions and duties in paragraphs (a) and (b).
Any licensed financial adviser who 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.
The Authority may by regulations under section 135 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.
A written notice issued under this section need not be published in the Gazette.[39