Singapore legislation
Regulation 8
of Financial Advisers (Exemption for Cross-Border Arrangements) (Foreign Offices) Regulations 2021
Regulation 8
Circumstances for exemption
Subregulation 1
For the purposes of regulations 4(1) and (3)(b), 6(1)(a) and (4)(b) and 7(3)(b), the circumstances are —
the licensed financial adviser or specified exempt financial adviser (as the case may be) (called in this regulation A) is subject to regulatory oversight, in respect of any activity that is carried out by the foreign office, by a foreign regulatory authority in the foreign jurisdiction where the foreign office is established;
A is subject to AML/CFT requirements of the foreign jurisdiction mentioned in sub‑paragraph (a) that are consistent with the standards set by the FATF and supervised by a foreign regulatory authority in that foreign jurisdiction as to whether A complies with the AML/CFT requirements;
both A and the foreign jurisdiction mentioned in sub‑paragraph (a) are not subject to any sanction imposed pursuant to a Resolution of the Security Council of the United Nations; and
every customer of A to whom the specified financial advisory service is provided —
is an accredited investor, institutional investor or expert investor; and
either —
belongs to a class of persons that the Authority has specified under any condition or restriction imposed under section 10(2) or 20(9) of the Act (as the case may be) as being a class of persons to whom A may provide the specified financial advisory service; or
does not belong to a class of persons that the Authority has specified under any condition or restriction imposed under section 10(2) or 20(9) of the Act (as the case may be) as being a class of persons to whom A may not provide the specified financial advisory service.
Subregulation 2
For the purposes of regulations 4(4) and (5) and 6(5)(a) and (7) the circumstances are —
the licensed financial adviser or specified exempt financial adviser (as the case may be) (called in this regulation B) is subject to regulatory oversight, in respect of any activity that is carried out by the foreign office, by a foreign regulatory authority in the foreign jurisdiction where the foreign office is established; and
B has implemented policies and procedures to ensure that in the course of providing the financial advisory service mentioned in regulation 4(4) or 6(5)(b) (as the case may be) through the foreign office under the cross‑border arrangement, every research analysis or research report rendered by B (through the foreign office) contains —
a statement to the effect that the recipient of the analysis or report is to contact a representative of B who is located in Singapore in respect of any matters arising from, or in connection with, the analysis or report; and
a statement to the effect that B accepts legal responsibility for the contents of the analysis or report without any disclaimer limiting or otherwise curtailing such legal responsibility unless the analysis or report is issued or promulgated to a person who is an accredited investor, expert investor or institutional investor.
Subregulation 3
In this regulation —
Definition
“accredited investor” means any of the following persons in relation to a counterparty, if the person has opted, under regulation 3(2) of the Securities and Futures (Classes of Investors) Regulations 2018 (G.N. No. S 665/2018), to be treated by the counterparty as an accredited investor for all the consent provisions:
an individual mentioned in section 4A(1)(a)(i) of the Securities and Futures Act 2001;
a corporation mentioned in section 4A(1)(a)(ii) of the Securities and Futures Act 2001;
a trustee mentioned in section 4A(1)(a)(iii) of the Securities and Futures Act 2001;
a person mentioned in section 4A(1)(a)(iv) of the Securities and Futures Act 2001;
Definition
“consent provision” and “counterparty” have the meanings given by regulation 3(9) of the Securities and Futures (Classes of Investors) Regulations 2018;
Definition
“foreign office” means the foreign office mentioned in regulation 4(1) or (4), 6(1) or (5) or 7(1), as the case may be;
Definition
“specified financial advisory service” means the financial advisory service in respect of which A is exempt under regulation 4(1), 6(2) or 7(1), as the case may be.