MAS Financial Adviser (FA) and FA Rep licensing — Costs and fees breakdown
MAS Financial Adviser licensing is required for firms advising on investment products or arranging life insurance in Singapore, while their advisers must be appointed as FA representatives. This guide explains the licence, the representative regime, and the realistic costs in Singapore dollars as at June 2026.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What MAS Financial Adviser licensing covers
A financial adviser advises on investment products, issues research, markets collective investment schemes, or arranges life policies. Carrying on these activities requires a financial adviser’s licence, and Section 6 of the Financial Advisers Act 2001 establishes the requirement to hold a licence to act as a financial adviser. Individuals who provide the advice must be appointed as FA representatives and meet competency and fit-and-proper standards.
Who needs an FA licence
Independent financial advisory firms, wealth managers advising clients on products, and insurance-focused advisory businesses fall within scope. Banks and certain regulated entities operate under exemptions. Firms that also manage assets on a discretionary basis should consider whether a Capital Markets Services licence is additionally required. The conduct framework sits alongside the wider securities regime explained in our Securities and Futures Act chapter explainers.
FA licensing requirements and the representative regime
An FA firm must have a resident CEO and directors who are fit and proper, at least two relevant professionals, base capital appropriate to the scope (commonly S$150,000 for many FA firms), professional indemnity insurance, and a compliance and risk framework. FA representatives must pass the relevant Capital Markets and Financial Advisory Services (CMFAS) examinations, be fit and proper, and be notified to MAS through the representative notification framework. Representatives may not act until properly appointed.
Costs and timeline
Indicative figures as at June 2026: MAS application fees are modest (in the region of S$1,000 to S$4,000). Licensing and compliance setup support typically runs S$20,000 to S$50,000. Base capital is commonly S$150,000, with professional indemnity insurance of S$5,000 to S$20,000 a year. CMFAS examination and onboarding costs for each representative run several hundred dollars. MAS review usually takes 4 to 8 months from a complete submission. Annual audit and compliance add S$15,000 to S$40,000.
Step-by-step application process
Confirm the advisory activities require an FA licence. Incorporate the entity and fund base capital. Recruit the CEO and relevant professionals, and arrange professional indemnity cover. Prepare the compliance manual, business plan and risk framework. Submit the FA licence application through MAS, and notify FA representatives once they have passed the CMFAS papers. Address MAS queries and, on approval, commence advising. Foreign founders should first complete Singapore Pte Ltd registration for foreigners, and review Section 13O vs Section 13U where advising high-net-worth and family-office clients.
Common mistakes and gotchas
Common errors include allowing representatives to advise before notification, under-scoping the CMFAS papers required for the product range, and weak compliance monitoring of advice. Firms also misjudge base capital where the scope is broad. Marketing collective investment schemes without the correct authorisation is a frequent compliance gap.
Related guides
See the CMS licence guide, the Securities and Futures Act chapter explainers, and VCC Act 2018 Section 46 permissible fund manager rules where advice connects to fund vehicles.
Authoritative references: the Monetary Authority of Singapore publishes FA licensing and representative requirements, and the Inland Revenue Authority of Singapore addresses the tax treatment of advisory income.
FAQs
Who must hold an FA licence?
Firms advising on investment products, issuing research, marketing collective investment schemes, or arranging life policies, unless they fall within an exemption.
What is an FA representative?
An individual appointed to provide financial advice on the firm’s behalf, who must pass the relevant CMFAS examinations and be fit and proper.
What base capital is required?
Commonly S$150,000 for many FA firms, alongside professional indemnity insurance, though the exact figure depends on scope.
How long does FA licensing take?
Typically 4 to 8 months from a complete submission, plus time to recruit professionals and complete CMFAS papers.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.