Financial Advisers (Transitional and Savings Provisions) Regulations

These Regulations may be cited as the Financial Advisers (Transitional and Savings Provisions) Regulations.

In these Regulations, unless the context otherwise requires —“FTA” means the repealed Futures Trading Act (Cap. 116, 1996 Ed.) in force immediately before 1st October 2002*;* Date of commencement of sections 1−104 of the Financial Advisers Act. Section 105 (formerly section 106) came into operation on 6th August 2002.“IIA” means the repealed Insurance Intermediaries Act (Cap. 142A, 2000 Ed.) in force immediately before 1st October 2002;“SIA” means the repealed Securities Industry Act (Cap. 289, 1986 Ed.) in force immediately before 1st October 2002.

“FTA” means the repealed Futures Trading Act (Cap. 116, 1996 Ed.) in force immediately before 1st October 2002*;* Date of commencement of sections 1−104 of the Financial Advisers Act. Section 105 (formerly section 106) came into operation on 6th August 2002.

“IIA” means the repealed Insurance Intermediaries Act (Cap. 142A, 2000 Ed.) in force immediately before 1st October 2002;

“SIA” means the repealed Securities Industry Act (Cap. 289, 1986 Ed.) in force immediately before 1st October 2002.

Subject to regulation 5, from 1st October 2002 —

any person (not being a person referred to in paragraph (e)) who, immediately before that date, is registered as a direct life insurance broker under Part III of the IIA shall be deemed to hold a financial adviser’s licence (referred to in this regulation as a deemed licence) under the Act to provide financial advisory services in respect of life policies —

until 31st December 2002; or

where an application for the renewal of the deemed licence is made by that person on or before 31st December 2002, until the date on which the deemed licence is renewed under the Act or the application is refused or withdrawn,whichever is the later;

paragraph (a) shall not apply to a person referred to in paragraph (f) unless the Authority has notified that person in writing under paragraph (f) that paragraph (a) shall apply to him;

in relation to an application for the renewal of a deemed licence referred to in paragraph (a)(ii) —

section 8(1) (other than paragraph (b)) and (2) of the Act shall apply; and

section 8(3) to (7) of the Act shall not apply;

where an application for the renewal of a deemed licence is made on any day between 1st December 2002 and 31st December 2002 (both dates inclusive), the Authority may impose a late renewal fee not exceeding $100 for every day or part thereof from 1st December 2002 until the application is made, subject to a maximum of $3,000;

any individual who, immediately before 1st October 2002, is a broking staff carrying on direct life insurance broking activities on behalf of a person referred to in paragraph (a) shall be deemed to hold a representative’s licence (referred to in this regulation as a deemed representative’s licence) under the Act to provide financial advisory services in respect of life policies —

for a period of 3 months from 1st October 2002; or

where an application for a representative’s licence under the Act is made by the individual within 3 months from that day, until the date on which the licence is granted to that individual or the application is refused or withdrawn,whichever is the later;

any person who, immediately before 1st October 2002, is registered as a direct life insurance broker and as one or more of the following under Part III of the IIA shall, unless the Authority has notified that person in writing by 1st October 2002 that paragraph (a) shall apply to him, be deemed to be an insurance broker registered under section 35X(2) of the Insurance Act (Cap. 142):

a direct general insurance broker;

a general reinsurance broker;

a life reinsurance broker;

any condition to which the registration of a direct life insurance broker referred to in paragraph (a) is subject immediately before 1st October 2002 shall, to the extent that it is consistent with the provisions of the Act, be deemed to be a condition to which the deemed licence is subject;

the Authority may at any time —

by notice in writing to any person referred to in paragraph (a), specify any additional condition or restriction to which the deemed licence is subject; or

by notice in writing to any person referred to in paragraph (e), specify any condition or restriction to which the deemed representative’s licence is subject; and

any condition to which the registration of a person deemed to be an insurance broker under paragraph (f) is subject immediately before 1st October 2002 shall, to the extent that it is consistent with the provisions of the Insurance Act (Cap. 142), be deemed to be a condition of the corresponding registration of the person as an insurance broker.

Subject to regulation 5, from 1st October 2002—

where the Authority has before that date so notified, in writing, any person who holds any of the following licences immediately before that date, that person shall be deemed to hold a financial adviser’s licence or representative’s licence (referred to in this regulation as a deemed licence) under the Act in respect of the activities authorised by the first-mentioned licence:

a futures trading adviser’s licence granted under Part III of the FTA;

a futures trading adviser’s representative’s licence granted under Part III of the FTA;

a dealer’s licence granted under Part IV of the SIA;

a dealer’s representative’s licence granted under Part IV of the SIA;

an investment adviser’s licence granted under Part IV of the SIA;

an investment representative’s licence granted under Part IV of the SIA;

where a person holds a licence referred to in paragraph (a)(i), (iii) or (v) and carries on any direct life insurance broking activity immediately before 1st October 2002, that person shall be authorised to provide financial advisory services in respect of life policies under the corresponding deemed licence; (c)any condition or restriction to which the licence referred to in paragraph (a)(i), (ii), (iii), (iv), (v) or (vi) is subject immediately before 1st October 2002 shall, to the extent that it is consistent with the provisions of the Act, be deemed to be a condition or restriction to which the corresponding deemed licence is subject;

the Authority may, by notice in writing to any person referred to in paragraph (a), specify —

the date of expiry of the deemed licence of the person;

notwithstanding paragraphs (a) and (b), the scope of the activities to which the deemed licence relates; and

any additional condition or restriction to which the deemed licence is subject;

upon the expiry of the deemed licence of any person referred to in paragraph (a) —

in a case where the date of expiry of the deemed licence is in the same month as the month in which Part III of the FTA and Part IV of the SIA are repealed, the person shall be entitled to provide such financial advisory service as authorised by the deemed licence if an application for the renewal of the deemed licence is made not later than 2 months after its date of expiry;

in a case where the date of expiry of the deemed licence is in the month following the month in which Part III of the FTA and Part IV of the SIA are repealed, the person shall be entitled to provide such financial advisory service as authorised by the deemed licence if an application for the renewal of the deemed licence is made not later than one month after its date of expiry; or

in any other case, the person shall be entitled to provide such financial advisory service as authorised by the deemed licence if an application for the renewal of the deemed licence is made on or before its date of expiry,until the date on which the deemed licence is renewed under the Act or the application is refused or withdrawn, as the case may be;

where no application for renewal of the deemed licence has been made in accordance with paragraph (e)(i) or (ii), a person referred to in paragraph (a) shall be entitled to provide such financial advisory service as authorised by the deemed licence —

in a case where the date of expiry of the deemed licence is in the same month as the month in which Part III of the FTA and Part IV of the SIA are repealed, for a period of 2 months after its date of expiry; or

in a case where the date of expiry of the deemed licence in the month following the month in which Part III of the FTA and Part IV of the SIA are repealed, for a period of one month after its date of expiry;

in relation to an application for the renewal of a deemed licence of a financial adviser which is made in accordance with paragraph (e) —

section 8(1) (other than paragraph (b)) and (2) of the Act shall apply; and

section 8(3) to (7) of the Act shall not apply;

in relation to an application for the renewal of a deemed licence of a representative which is made in accordance with paragraph (e) —

section 8(1) (other than paragraph (b)) and (2) to (5) of the Act shall apply; and

section 8(6) and (7) of the Act shall not apply;

where an application referred to in paragraph (e)(iii) is made on any day during the period of one month immediately before the expiry of the deemed licence, the Authority may impose a late renewal fee not exceeding $100 for every day or part thereof from the date such period commences until the application is made, subject to a maximum of $3,000;

any application made before 1st October 2002 for the renewal of a licence referred to in paragraph (a)(i), (ii), (iii), (iv), (v) or (vi) which corresponds to a deemed licence shall be deemed to be withdrawn, and the Authority shall refund any fee paid in respect of the application;

for the purposes of paragraphs (e) and (f), and unless otherwise notified by the Authority under paragraph (d) —

where a person holds a licence referred to in paragraph (a)(i), (ii), (iii), (iv), (v) or (vi) immediately before 1st October 2002, the date of expiry of the corresponding deemed licence shall be the date on which the first-mentioned licence would have expired but for the repeal of Part III of the FTA or Part IV of the SIA, as the case may be; or

where a person holds 2 or more of the licences referred to in paragraph (a)(i), (ii), (iii), (iv), (v) or (vi) immediately before 1st October 2002, the date of expiry of the last of such licences to expire shall be taken to be the date of expiry of all the corresponding deemed licences; and

any individual who, immediately before 1st October 2002, is carrying on direct life insurance broking activities on behalf of a person who holds a licence referred to in paragraph (a)(i), (iii) or (v) shall, if the individual does not hold a representative’s licence under the FTA or SIA immediately before that date, be deemed to hold a representative’s licence under the Act to provide financial advisory services in respect of life policies —

for a period of 3 months from 1st October 2002; or

where an application for a representative’s licence under the Act is made by the individual within 3 months from that date, until the date on which the licence is granted to that individual or the application is refused or withdrawn,whichever is the later.

From 1st October 2002—

where the Authority has by that date so notified, in writing, any person who is registered as a direct life insurance broker under Part III of the IIA, and who holds one or more of the licences referred to in regulation 4(a)(i), (iii) or (v), immediately before that date —

that person shall be deemed to hold a financial adviser’s licence (referred to in this regulation as a deemed licence) under the Act in respect of the activities authorised by such registration and licence immediately before that date;

any condition or restriction to which that person is subject by virtue of such registration and licence immediately before that date shall, to the extent that it is consistent with the provisions of the Act, be deemed to be a condition or restriction to which the deemed licence is subject;

unless otherwise notified in writing by the Authority, that person shall be entitled to carry on the activities authorised by such registration and licence immediately before that date until the date of expiry of the deemed licence;

for the purpose of sub-paragraph (iii), the date of expiry of the deemed licence shall, unless otherwise notified in writing by the Authority, be the date of expiry of the licence referred to in regulation 4(a)(i), (iii) or (v) held by that person or, where that person holds more than one such licence, the date of expiry of the last of such licences to expire; and

regulation 4(d) to (j) shall, with the necessary modifications, apply to that person;

any individual who, immediately before 1st October 2002, is a broking staff carrying on direct life insurance broking activities on behalf of a person referred to in paragraph (a) shall, if the individual does not hold a representative’s licence under the FTA or SIA immediately before that date, be deemed to hold a representative’s licence under the Act to provide financial advisory services in respect of life policies —

for a period of 3 months from 1st October 2002; or

where an application for a representative’s licence under the Act is made by the individual within 3 months from 1st October 2002, until the date on which the licence is granted to that individual or the application is refused or withdrawn,whichever is the later; and

without prejudice to the application of regulation 4 to any representative of a person referred to in paragraph (a), such representative shall be entitled to continue with any direct life insurance broking activity as he may have carried on immediately before 1st October 2002 for as long as he is deemed to be licensed under the Act in respect of the activities authorised by his representative’s licence under the FTA or SIA, as the case may be.

Any person who, immediately before 1st October 2002, was a person exempted under regulation 22A(1)(a) of the revoked Futures Trading Regulations (Cap. 116, Rg 1, 1998 Ed.) or regulation 41(1)(a) of the revoked Securities Industry Regulations (Cap. 289, Rg 1, 1995 Ed.) from the requirement to hold the applicable licence under the FTA or SIA, as the case may be, to carry on business in the activity referred to in that regulation shall be exempted from the requirement under the Act to hold a financial adviser’s licence to carry on business in respect of such activity —

for a period of 6 months from 1st October 2002; or

if, before the expiry of the period of 6 months, he applies for a capital markets services licence for that activity or for activities which include that activity under the Securities and Futures Act (Cap. 289), until the date on which the licence is granted to him, or his application is refused or withdrawn,whichever is the later.

Any person who, immediately before 1st October 2002, was acting as a representative for a person referred to in paragraph (1) (referred to in this regulation as the principal) in respect of the activity referred to in regulation 22A(1)(a) of the revoked Futures Trading Regulations or regulation 41(1)(a) of the revoked Securities Industry Regulations, as the case may be, shall be exempted from the requirement under the Act to hold a licence to act as a representative for that principal in respect of such activity —

for a period of 6 months from 1st October 2002; or

if, before the expiry of the period of 6 months, he applies for a representative’s licence for that activity or for activities which include that activity under the Securities and Futures Act (Cap. 289), until the date on which the licence is granted to him, or his application is refused or withdrawn,whichever is the later.

The exemption of a person under paragraph (1) shall cease to apply under any of the circumstances specified in regulation 22A(2) and (4) of the revoked Futures Trading Regulations (Cap. 116, Rg 1, 1998 Ed.) or regulation 41(2)(a) and (4) of the revoked Securities Industry Regulations (Cap. 289, Rg 1, 1995 Ed.), as the case may be.

The exemption of a person under paragraph (2) shall cease to apply if the exemption of his principal under paragraph (1) ceases to apply by virtue of the expiry of the period referred to in paragraph (1)(a) or (b), or by virtue of paragraph (3).

Any person who, immediately before 1st October 2002, was a person exempted under regulation 22A(1)(a) of the revoked Futures Trading Regulations (Cap. 116, Rg 1, 1998 Ed.) or regulation 41(1)(a) of the revoked Securities Industry Regulations (Cap. 289, Rg 1, 1995 Ed.) from the requirement to hold the applicable licence under the FTA or SIA, as the case may be, to carry on business in the activity referred to in that regulation shall be exempted from the requirement under the Act to hold a financial adviser’s licence to carry on business in respect of such activity —

for a period of 6 months from 1st October 2002; or

if, before the expiry of the period of 6 months, he applies for a capital markets services licence for that activity or for activities which include that activity under the Securities and Futures Act (Cap. 289), until the date on which the licence is granted to him, or his application is refused or withdrawn,whichever is the later.

Any person who, immediately before 1st October 2002, was acting as a representative for a person referred to in paragraph (1) (referred to in this regulation as the principal) in respect of the activity referred to in regulation 22A(1)(a) of the revoked Futures Trading Regulations or regulation 41(1)(a) of the revoked Securities Industry Regulations, as the case may be, shall be exempted from the requirement under the Act to hold a licence to act as a representative for that principal in respect of such activity —

for a period of 6 months from 1st October 2002; or

if, before the expiry of the period of 6 months, he applies for a representative’s licence for that activity or for activities which include that activity under the Securities and Futures Act (Cap. 289), until the date on which the licence is granted to him, or his application is refused or withdrawn,whichever is the later.

The exemption of a person under paragraph (1) shall cease to apply under any of the circumstances specified in regulation 22A(2) and (4) of the revoked Futures Trading Regulations (Cap. 116, Rg 1, 1998 Ed.) or regulation 41(2)(a) and (4) of the revoked Securities Industry Regulations (Cap. 289, Rg 1, 1995 Ed.), as the case may be.

The exemption of a person under paragraph (2) shall cease to apply if the exemption of his principal under paragraph (1) ceases to apply by virtue of the expiry of the period referred to in paragraph (1)(a) or (b), or by virtue of paragraph (3).