MAS issues Guidelines on Provision of Financial Advisory Service
30 July 2019
On 10 July 2019, the Monetary Authority of Singapore (“MAS”) issued the “Guidelines on Provision of Financial Advisory Service” (“Guidelines”).
The Second Schedule to the Financial Advisers Act (“FAA”) sets out the types of financial advisory services regulated under the FAA. The Guidelines provide greater clarity on what constitutes the provision of financial advisory service under paragraphs 1 and 2 of the Second Schedule, namely:
- advising others, either directly or through publications or writings, whether in electronic, print or other form, concerning any investment product, other than advising on corporate finance within the meaning of the Securities and Futures Act; and
- advising others by issuing or promulgating analyses or reports, whether in electronic, print or other form, concerning any investment product.
In addition to discussing the two-stage test used to assess whether a person is carrying on a business of providing a financial advisory service, the Guidelines explain MAS’ position on the distribution or reproduction of research reports and portfolio allocation advice.
The Guidelines also set out a flowchart summarising its application.The Guidelines should be read in conjunction with the provisions of the FAA, the Financial Advisers Regulations, as well as written directions, notices, codes and other guidelines that MAS may issue from time to time.
Reference materials
The Guidelines are available from the MAS website www.mas.gov.sg or by clicking here.