Singapore legislation

Regulation 38

Exemption of licensed financial advisers for distribution of direct purchase insurance products

Amended byS 222/2023 wef 31/12/2021S 222/2023 wef 31/12/2021S 169/2015 wef 31/03/2015

Subregulation 1

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

Subject to the conditions in paragraph (2), a licensed financial adviser which distributes direct purchase insurance products on behalf of one or more direct life insurers, is exempt from —

(a)

sections 34 and 36 of the Act in respect of the provision of any specified financial advisory service by the licensed financial adviser that is solely incidental to the distribution of the direct purchase insurance products; and

(b)

section 22(5) of the Act in respect of the distribution of the direct purchase insurance products by any of the licensed financial adviser’s customer service officers.

Subregulation 2

Amended byS 169/2015 wef 31/03/2015

For the purposes of paragraph (1), the conditions are —

(a)

other than by any specified advertisement, the licensed financial adviser must not, whether through a customer service officer, representative or otherwise, and whether in Singapore or elsewhere —

(i)

offer to sell to the public in Singapore or any section of the public in Singapore;

(ii)

invite the public in Singapore or any section of the public in Singapore to purchase; or

(iii)

solicit from the public in Singapore or any section of the public in Singapore offers to purchase,any direct purchase insurance product;

(b)

other than by any specified advertisement, the licensed financial adviser must not, whether through a customer service officer, representative or otherwise, and whether in Singapore or elsewhere —

(i)

offer to sell to a member of the public in Singapore;

(ii)

invite any such member to purchase; or

(iii)

solicit from any such member an offer to purchase,any direct purchase insurance product, unless the member of the public has first requested for information on any life policy;

(c)

the licensed financial adviser must not, whether through a customer service officer, representative or otherwise, omit to disclose any matter that is material to any statement or representation made in relation to any direct purchase insurance product to any client; and

(d)

the licensed financial adviser must establish and maintain a register containing the following details of each appointed or provisional representative who distributes the direct purchase insurance products on behalf of the licensed financial adviser under paragraph (1)(a) and each customer service officer referred to in paragraph (1)(b):

(i)

name;

(ii)

identity card number or passport number;

(iii)

contact number;

(iv)

the places of business of the licensed financial adviser at which the appointed or provisional representative or customer service officer distributes the direct purchase insurance products;

(v)

the date on which the appointed or provisional representative or customer service officer commences distributing the direct purchase insurance products;

(vi)

the date on which the appointed or provisional representative or customer service officer ceases distributing the direct purchase insurance products, where applicable.

Read in full context — Financial Advisers Regulations →