Singapore legislation

Regulation 16

Continuing financial requirements

Amended byS 222/2023 wef 31/12/2021S 222/2023 wef 31/12/2021

Subregulation 1

Amended byS 222/2023 wef 31/12/2021

For the purposes of section 8(1)(b) of the Act, a licensed financial adviser, not being a foreign company, shall at all times maintain a net asset value of not less than —

(a)

in the case where it does not have an immediately preceding financial year, three-quarters of the minimum paid-up capital required under regulation 15; or

(b)

in any other case —

(i)

one-quarter of its relevant annual expenditure of the immediately preceding financial year; or

(ii)

three-quarters of the minimum paid-up capital required under regulation 15, whichever is the higher.

Subregulation 2

Amended byS 222/2023 wef 31/12/2021

For the purposes of section 8(1)(b) of the Act, a licensed financial adviser which is a foreign company shall at all times maintain net head office funds of not less than —

(a)

in the case where it does not have an immediately preceding financial year, the minimum net head office funds required under regulation 15; or

(b)

in any other case —

(i)

one-quarter of its relevant annual expenditure of the immediately preceding financial year; or

(ii)

the minimum net head office funds required under regulation 15, whichever is the higher.

Subregulation 3

For the purposes of paragraphs (1)(b)(i) and (2)(b)(i), the relevant annual expenditure of a licensed financial adviser for the immediately preceding financial year means the total expenditure of the financial adviser for that year less the following:

(a)

staff bonuses (except to the extent that they are guaranteed);

(b)

employees’ and directors’ shares in profits (except to the extent that they are guaranteed); and

(c)

any commission or fee paid to its representatives which is directly related to the commission or fee received by the financial adviser.

Read in full context — Financial Advisers Regulations →