The Monetary Authority of Singapore, MAS, has published updated frequently asked questions (FAQs) on the licensing and business conduct of financial market participants other than fund management companies. The FAQs provide guidance to numerous market participants, including venture capital funds, investment trusts, exempt OTC derivatives brokers, and certain (other) Capital Market Service (CMS) license holders with respect to the scope of a CMS license, the applicable business conduct rules, and the appointment of representatives, to name a few. In this latest version, MAS has added the following two FAQs – as quoted:
Q81: My company holds a CMS licence under the SFA. Are we allowed to mention our licensing/regulatory status on our company’s website or marketing materials?
A81: The company should display only factual information pertaining to its licensing/regulatory status on its website and/or any other communications or marketing materials. The company should not misrepresent MAS’ role in and/or association with any information presented on the company’s website and/or any other communications or marketing materials.
Q82: My company holds a CMS licence for dealing in capital markets products and operates as a securities-based crowdfunding (SCF) platform. We are reviewing our website contents and other marketing materials. What should we look out for?
A82: The company should review the information on its website and other marketing materials to ensure compliance with regulations 46, 46AA, 46AB, 46AC and 46AD of the SF(LCB)R. The company should not, among others misrepresent the nature and risk profile of the capital markets products it offers to investors. For example, it should not present the loans offered as comparable to financial products of a different risk profile such as fixed or saving deposits and Singapore Savings Bonds, or market the loans as safe, low risk or suitable for risk averse investors when it is not the case.
FAQs on Licensing and Business Conduct (Other than for Fund Management Companies)
ID
24925
Other Features
companies
compliance
crowdfunding
investors
marketing
regulatory
securities trading
Date Published: 2023-09-13
Regulatory Framework: Securities and Futures Act 2001
Regulatory Type: Q&As
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