Financial Advisers Act (FAA) chapter explainers — Costs and fees breakdown
The Financial Advisers Act 2001 regulates the provision of financial advisory services in Singapore, and compliance costs begin with a S$1,000 financial adviser’s licence application fee and extend to professional indemnity insurance and ongoing compliance retainers. This guide sets out the fees, thresholds and timelines advisers should expect in 2026.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What the Financial Advisers Act covers
The Financial Advisers Act governs anyone who advises on investment products, markets collective investment schemes, or arranges life insurance in Singapore. It is administered by MAS. Section 6 of the Financial Advisers Act 2001 establishes that a person must not carry on a business of providing any financial advisory service without a financial adviser’s licence, unless exempt. This licensing requirement is the anchor for the cost analysis below. The Act is published on Singapore Statutes Online, with licensing guidance from MAS.
Who needs a licence
Licensed financial advisers, insurance brokers advising on life policies, and firms distributing investment products fall within the Act. Banks and insurers operate under exemptions tied to their primary licences. Appointed and provisional representatives must be registered. Directors of an advisory firm carry general corporate duties too, discussed in our note on the director’s duty to act in good faith.
Cost and fee breakdown (2026)
The financial adviser’s licence application fee is S$1,000, with an annual fee of S$4,000. Firms must maintain minimum financial resources, commonly a base capital of S$150,000 for a licensed financial adviser, and hold professional indemnity insurance appropriate to the business, which typically costs S$5,000 to S$25,000 a year. Representative registration and continuing professional development add per-head costs. Compliance manual preparation and set-up commonly runs S$15,000 to S$40,000, with ongoing compliance support of S$2,000 to S$8,000 a month.
Timelines
MAS review of a financial adviser’s licence application generally takes three to five months for a straightforward applicant. Preparation of the business plan, compliance framework and fit-and-proper documentation typically takes a further two months before submission.
Step-by-step: obtaining an FA licence
First, define the financial advisory services to be offered. Second, incorporate the entity and meet the base capital and financial resources requirements. Third, appoint fit-and-proper directors and a CEO. Fourth, arrange professional indemnity insurance. Fifth, prepare compliance, risk and anti-money-laundering policies. Sixth, submit the application with the S$1,000 fee and respond to MAS queries.
Common mistakes and gotchas
Applicants often confuse the FAA licence with a CMS licence, under-provision for professional indemnity insurance, or fail to register representatives correctly. Staffing a new advisory arm also raises employment obligations, so review the Workplace Fairness Act employer obligations before you hire.
Related guides
For the adjacent MAS regime, read our breakdown of MAS financial adviser and FA representative licensing costs, which drills into per-representative fees.
Documents and information you will need
A licence application requires a detailed business plan, group structure chart, financial projections, evidence of base capital, fit-and-proper declarations for directors and key officers, a compliance manual, and anti-money-laundering and countering-the-financing-of-terrorism policies. Representatives’ qualifications and examination records must be documented. MAS also expects clarity on outsourcing arrangements and technology risk management. Assembling these before submission shortens the review and controls advisory cost.
Consequences of getting it wrong
Carrying on a regulated activity without the required licence is a serious offence attracting fines and potential imprisonment, and MAS can impose prohibition orders on individuals. Deficient compliance frameworks can lead to enforcement action, reputational damage and loss of licence. Because MAS supervises on a continuing basis, ongoing compliance spending is not optional; it is the cost of retaining authorisation.
How we can help
Raffles Corporate Services handles the full lifecycle described above: gathering the documents, meeting the deadlines, and coordinating with the relevant authority so nothing falls through the cracks. We work with a panel of corporate and employment law firms where formal legal advice is needed, and we keep fees transparent and fixed where possible so you can budget with confidence. Engaging early, before deadlines loom, is consistently the cheapest path.
FAQs
What does an FA licence cost? The application fee is S$1,000 and the annual fee is S$4,000, plus base capital of around S$150,000 and professional indemnity insurance.
How long does approval take? Typically three to five months from a complete submission.
Is professional indemnity insurance mandatory? Licensed financial advisers are generally required to maintain professional indemnity cover appropriate to their business.
What is the difference between the FAA and the SFA? The FAA regulates financial advisory services, while the SFA regulates dealing, fund management and other capital markets activities.
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.