Singapore legislation
Schedule TWENTY‑FIRST SCHEDULE
Schedule TWENTY‑FIRST SCHEDULE
Examples of non‑compliance with requirements for advertisement or publication
Regulation 17(3) to (6)Examples of non‑compliance with requirements for advertisement or publication
1. For the purposes of regulation 17(3), each of the following advertisements or publications in respect of an offer or intended offer of securities or securities‑based derivatives contracts is false or misleading:
an advertisement or a publication that omits any material information, and as a result of that omission, the advertisement or any part of the advertisement is false or misleading;
an advertisement or a publication that contains a false or misleading statement;
an advertisement or a publication that contains information that cannot be justified based on the facts known to the person who disseminated or published the advertisement or publication, or caused the advertisement or publication to be disseminated or published;
an advertisement or a publication that contains any information, in text or otherwise, that is inaccurate or inconsistent with the nature or risks of the securities or securities‑based derivatives contracts;
an advertisement or a publication that contains any exaggerated statement that is calculated to exploit an individual’s lack of experience and knowledge;
an advertisement or a publication that contains information that is inconsistent with any information provided by the issuer of the securities or securities‑based derivatives contracts to the person who disseminated or published the advertisement or publication, or caused the advertisement or publication to be disseminated or published;
an advertisement or a publication that contains or refers to any graph, chart, formula or other device and represents directly or indirectly, that —
the graph, chart, formula or device can, in and of itself, be used to determine which securities or securities‑based derivatives contracts to buy or sell, or when to buy or sell securities or securities‑based derivatives contracts; or
the graph, chart, formula or device will assist any person in deciding which securities or securities‑based derivatives contracts to buy or sell, or when to buy or sell securities or securities‑based derivatives contracts,but does not prominently disclose the limitations, and difficulties in respect of the use, of the graph, chart, formula or device;
an advertisement or a publication that contains any statement to the effect that any report, analysis or other service will be furnished free or without charge, when there is any condition or obligation for the furnishing of that report, analysis or service in its entirety.
2. For the purposes of regulation 17(4), each of the following advertisements or publications in respect of an offer or intended offer of securities or securities‑based derivatives contracts does not provide a fair and balanced view of the securities or securities‑based derivatives contracts:
an advertisement or a publication that contains a statement on any return of the principal sum invested in the securities or securities‑based derivatives contracts, or any benefit of holding those securities or securities‑based derivatives contracts, but —
does not provide an unbiased description of the risks associated with the securities or securities‑based derivatives contracts; or
does not give a proportionate level of prominence to any warning, disclaimer or qualification that is disclosed in relation to that statement;
an advertisement or a publication in respect of securities or securities‑based derivatives contracts that are structured with the objective of returning the full principal sum invested in the securities or securities‑based derivatives contracts to a holder of the securities or securities‑based derivatives contracts upon the maturity of the securities or securities‑based derivatives contracts, where —
the return of the full principal sum invested in the securities or securities‑based derivatives contracts at maturity is not unconditionally guaranteed; and
the advertisement or publication does not contain a statement that clearly highlights the matter mentioned in sub‑paragraph (i);
an advertisement or a publication that contains a representation that the return of all or a part of the principal sum invested in the securities or securities‑based derivatives contracts is guaranteed, or that the rate of return on the securities or securities‑based derivatives contracts is guaranteed, but —
does not state the name of the guarantor; or
does not contain a statement that clearly highlights that while there is a guarantor who guarantees the return of all or a part of the principal sum invested in the securities or securities‑based derivatives contracts, or the rate of return on the securities or securities‑based derivatives contracts, there is no assurance that the guarantor will be able to fulfil its obligations under such guarantee;
an advertisement or a publication that contains historical information on the securities or securities‑based derivatives contracts, but does not contain a statement that the information presented is historical information, and that the past performance of the securities or securities‑based derivatives contracts is not indicative of its future performance;
an advertisement or a publication that gives the impression that an investor can profit from investing in the securities or securities‑based derivatives contracts without any risk;
an advertisement or a publication that suggests that the nature of the securities or securities‑based derivatives contracts is, or is comparable to, a deposit;
an advertisement or a publication that —
is in respect of securities or securities‑based derivatives contracts where the return of the principal sum invested is not guaranteed; but(ii)suggests that the risk of the holder of the securities or securities‑based derivatives contracts losing the holder’s principal sum invested is low or does not exist;
an advertisement or a publication that —
is in respect of securities or securities‑based derivatives contracts where the rate of return on the principal sum invested is not guaranteed; but(ii)suggests that the risk of the holder of the securities or securities‑based derivatives contracts not achieving the stated, targeted or expected rate of return on the principal sum invested is low or does not exist.
3. For the purposes of regulation 17(5), each of the following advertisements or publications in respect of an offer or intended offer of securities or securities‑based derivatives contracts does not present information in a clear manner:
an advertisement or a publication in respect of an offer or intended offer of securities or securities‑based derivatives contracts that presents information (including information in footnotes) in a manner that is not easily understood by —
in any case where the advertisement or publication states that it is directed at or intended for a class of persons, a reasonable person belonging to that class of persons; or
in any other case, a reasonable person who may rely on the advertisement or publication;
an advertisement or a publication that contains any jargon or technical term, but does not define or explain that jargon or term in a manner that is easily understood by —
in a case where the advertisement or publication states that it is directed at or intended for a class of persons, a reasonable person belonging to that class of persons; or
in any other case, a reasonable person who may rely on the advertisement or publication.
4. For the purposes of regulation 17(6), each of the following advertisements or publications in respect of an offer or intended offer of securities or securities‑based derivatives contracts is not clearly legible:
an advertisement or a publication that appears in any document in written or printed form, including any newspaper, periodical, magazine or letter, and that —
presents information in a font size that is smaller than 10‑point Times New Roman, or a visually equivalent font size of any other standard font typeface; or
presents information in any footnote in a font size that is smaller than —
where the font size of the word or statement to which the footnote relates is or is smaller than 20‑point Times New Roman or a visually equivalent font size of any other standard font typeface — 10‑point Times New Roman, or a visually equivalent font size of any other standard font typeface;
where the font size of the word or statement to which the footnote relates is larger than 20‑point Times New Roman or a visually equivalent font size of any other standard font typeface but smaller than 29‑point Times New Roman or a visually equivalent font size of any other standard font typeface — half the font size of that word or statement; or
where the font size of the word or statement to which the footnote relates is or is larger than 29‑point Times New Roman or a visually equivalent font size of any other standard font typeface — 14‑point Times New Roman, or a visually equivalent font size of any other standard font typeface;
an advertisement or a publication that appears in any form other than a document mentioned in sub‑paragraph (a), and that presents information in any footnote in a font size that is smaller than half the font size of the word or statement to which the footnote relates.
5. In this Schedule, unless the context otherwise requires —“bank” means a bank in Singapore or a merchant bank;“bank in Singapore” has the meaning given by section 2(1) of the Banking Act (Cap. 19);“deposit” means —
where the deposit is accepted by a bank, a deposit as defined in section 4B(4) of the Banking Act; or
where the deposit is accepted by a finance company, a deposit as defined in section 2 of the Finance Companies Act (Cap. 108);“finance company” has the meaning given by section 2 of the Finance Companies Act;“merchant bank” means any merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act.[S 470/2021 wef 01/07/2021]