Singapore legislation

Regulation 40E

Prescribed criteria for consent under section 62(2) of Act

Amended byS 815/2015 wef 01/01/2016S 222/2023 wef 31/12/2021

For the purposes of section 62(2) of the Act, a financial adviser must not give its consent to an appointed representative or a provisional representative to engage in any of the acts referred to in section 62(1) of the Act (called in this regulation the restricted act) unless the financial adviser is satisfied that —

(a)

the engagement in the restricted act will not give rise to a conflict of interest for the representative;

(b)

the engagement in the restricted act will not cause reputational damage to the financial adviser, or to the financial advisory industry, or to both;

(c)

the engagement in the restricted act is unlikely to result in the representative neglecting the representative’s duties as the financial adviser’s appointed representative or provisional representative, as the case may be;

(d)

the representative has, before engaging in the restricted act with or for a third party —

(i)

informed the financial adviser that the representative intends to engage in the restricted acts with or for the third party; and

(ii)

disclosed to the third party that the representative is an appointed representative or a provisional representative of the financial adviser;

(e)

the representative will not be engaging in any of the following acts:

(i)

carrying on, or holding himself out in any way as carrying on, the business of moneylending or being concerned, engaged or employed in the business of moneylending;

(ii)

organising, promoting or conducting a casino marketing arrangement in or with respect to any casino;

(iii)

acting as an associate of an international market agent;

(iv)

being concerned, engaged or employed in the business of an international market agent;

(v)

being an applicant for an international market agent licence;

(vi)

exercising or carrying on the business of an estate agent, or acting or holding himself out as an estate agent;

(vii)

being concerned, engaged or employed in the business of an estate agent;

(viii)

acting or holding himself out as a salesperson for any licensed estate agent;

(ix)

marketing any investment that is not an investment product;

(f)

the representative will not invest in, or hold any interest in, any moneylending business or in any business of an international market agent or of an estate agent; and

(g)

it has in place, in a manner commensurate with the nature, scale and complexity of its business, the following:

(i)

systems and controls to evaluate the criteria set out in paragraphs (a) to (f);

(ii)

processes in place to maintain records of every evaluation carried out by the financial adviser in relation to any restricted act which its appointed representative or provisional representative engages in.

Read in full context — Financial Advisers Regulations →