Qualified trading reps can provide investment advice
We refer to the article by R Sivanithy, “Reinvent rules for remisiers” (BT, Nov 18).
Remisier kings
The cousins who have taken over Peter Lim’s throne View PDF
Popular posts from this blog
Ex-bank owner Agus Anwar declared bankrupt
Prominent former bank owner Agus Anwar was yesterday declared bankrupt by the High Court.
Two ex-UOBKH staff charged with lying to MAS over due diligence reports on a Catalist aspirant
TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issue manager
Comments
27 November 2014
We refer to the article by R Sivanithy, “Reinvent rules for remisiers” (BT, Nov 18).
He mentioned that trading representatives (TRs) of broking houses are prohibited from offering investment advice under the Securities and Futures Act (SFA). We would like to clarify that the provision of financial advice is regulated under the Financial Advisers Act (FAA).
TRs with necessary qualifications and who have passed relevant examinations can provide investment and financial advice, as long as they comply with relevant business conduct requirements under the FAA.
The required qualifications and applicable examinations are set out in the Notice on Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers (FAA-N13).
The business conduct requirements under the FAA are set out in the Notice on Recommendations on Investment Products (FAA-N16), under which TRs are required to have a reasonable basis for advice and ensure that the investment product recommended to the customer meets his financial objectives, risk profile and personal situation through a needs-analysis assessment.
We agree with Mr Sivanithy that TRs can play a greater professional and advisory role in the market place. Many TRs of the broking houses today provide what is known as execution-related advice. Such advice is provided in relation to enquiries from customers on their share transaction decisions and execution.
As the provision of such advice does not take into account the financial needs and situation of the individual customer, it is not subject to a needs analysis of the customer.
Qualified TRs who are prepared to comply with the relevant business conduct requirements under the FAA can go beyond providing execution-related advice, to providing a fuller range of personal financial advice for their customers.
The Monetary Authority of Singapore will work with the relevant industry stakeholders such as the Society of Remisiers (Singapore), the Securities Association of Singapore and the Securities Investors Association of Singapore to provide greater clarity and guidance to the industry on the scope of financial advice that can be provided by qualified TRs and the applicable business conduct requirements.
Bey Mui Leng (Ms)
Director (corporate communications)
Monetary Authority of Singapore