Singapore legislation

Regulation 21

Use of term “independent”

Subregulation 1

No licensed financial adviser or exempt financial adviser shall use the word “independent” or any of its derivatives in any language, or any other word or expression in any language that is of like import to “independent” —

(a)

in the name, description or title under which it carries on business in Singapore;

(b)

to promote or advertise its services; or

(c)

in respect of its provision of any financial advisory service, unless —

(i)

the financial adviser does not receive any commission or other benefit from a product provider which may create product bias and does not pay any commission to or confer other benefit upon its representatives which may create product bias;

(ii)

the financial adviser operates free from any direct or indirect restriction relating to any investment product which is recommended; and

(iii)

the financial adviser operates without any conflict of interest created by any connection to or association with any product provider.

Subregulation 2

Where a licensed financial adviser or an exempt financial adviser —

(a)

is prohibited from using the word “independent” under paragraph (1); or

(b)

is not prohibited from using the word “independent” under paragraph (1) but decides not to do so,it shall ensure that its representatives do not use the word “independent” or any of its derivatives in any language, or any other word or expression in any language that is of like import to “independent” in the manner specified in paragraph (1)(a), (b) or (c).

Subregulation 3

No representative of a licensed financial adviser or an exempt financial adviser shall use the word “independent” or any of its derivatives in any language, or any other word or expression in any language that is of like import to “independent”, in acting as a representative of the financial adviser if the financial adviser has informed him that it may not do so.

Subregulation 4

Any financial adviser which contravenes paragraph (1) shall be guilty of an offence.

Subregulation 4A

Any financial adviser which, without reasonable excuse, contravenes paragraph (2) shall be guilty of an offence.

Subregulation 5

Any representative who contravenes paragraph (3) shall be guilty of an offence.

Read in full context — Financial Advisers Regulations →