FAQs on Financial Advisers Act, Financial Advisers Regulations, Notices and Guidelines

The Monetary Authority of Singapore (MAS) has published revised FAQs on the Financial Advisers Act (FAA), Financial Advisers Regulations (FAR), Notices and Guidelines. The frequently asked questions provide guidance to financial advisers about the FAA regime and covers topics including licensing requirements, exemptions therefrom, the representative notification framework, business conduct and reporting requirements, specific product issues, and many others.
##### This last revised version contains a new FAQ in section II, setting out „Licensing Requirements for Financial Advisers“:
FAQ 15: What are the procedures if my company wishes to establish a subsidiary or an overseas branch? (page 16)
Answer: A licensed financial adviser is required to seek MAS’ approval before establishing a subsidiary or an overseas branch. In general, MAS will not approve such set-ups, unless there are exceptional reasons. This is because the operations of such entities could have a significant impact on the licensed financial adviser and MAS’ oversight does not extend to their operations. Any such subsidiary or branch should be established to primarily support the business of the licensed financial adviser. The licensed financial adviser must also, among others, demonstrate its ability to effectively oversee and take responsibility for the subsidiary’s or branch activities.