Singapore legislation
Regulation 17
Regulation 17
Professional indemnity insurance
For the purposes of section 8(1)(c) of the Act, the limit of indemnity to be covered under the professional indemnity insurance policy for the grant of a financial adviser’s licence in respect of all types of financial advisory service to be provided or provided by the applicant for such licence shall be an amount of not less than $500,000, under which the deductible allowed shall be —
in the case of an applicant which is a foreign company —
where the foreign company does not have an immediately preceding financial year, not more than 20% of its net head office funds before the date on which the licence is granted; or
in any other case, not more than 20% of the net head office funds of the applicant as at the end of its immediately preceding financial year; or
in the case of any other applicant —
where the applicant does not have an immediately preceding financial year, not more than 20% of its paid-up capital; or
in any other case, not more than 20% of the net asset value of the applicant as at the end of its immediately preceding financial year.