Financial Advisers Act (FAA) chapter explainers — Timeline and processing benchmarks
The Financial Advisers Act 2001 governs who may provide financial advisory services in Singapore, how they are licensed, and the conduct standards they must meet. In practice, a firm that advises on investment products, arranges life policies or markets collective investment schemes will generally need a Financial Adviser licence from the Monetary Authority of Singapore, an application MAS typically assesses within about four months.
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 regulates financial advisory services, which include advising others on investment products, issuing analyses or reports, marketing collective investment schemes, and arranging life policies. Section 6 of the Financial Advisers Act 2001 addresses the requirement to hold a financial adviser’s licence to carry on a business of providing any financial advisory service, subject to defined exemptions. The Act is administered by MAS, and it operates in parallel with the Securities and Futures Act 2001, which governs the underlying capital markets products.
Representatives who deal directly with clients must be appointed and must satisfy the applicable competency requirements, including the relevant Capital Markets and Financial Advisory Services examination modules. The conduct provisions cover disclosure of remuneration, suitability of recommendations, and handling of client interests.
Who this explainer is for
The series is written for wealth advisory start-ups, insurance intermediaries, multi-family offices that advise on products, and directors of groups adding an advisory arm. It is equally relevant to a foreign adviser considering relocation to Singapore, since the licensing timeline and the work-pass timeline need to be sequenced together.
Licence types and requirements
MAS distinguishes between a Financial Adviser licence and exempt financial advisers, such as banks and insurers already regulated under other statutes. A licensed FA must meet minimum financial requirements, maintain professional indemnity insurance, appoint fit-and-proper directors and representatives, and put compliance arrangements in place. The base financial requirement for a licensed financial adviser is commonly set at S$150,000 in net assets, though this depends on the scope of activities and whether client moneys are handled.
Cost and timeline benchmarks
A complete FA licence application is typically assessed by MAS within about four months, extending where the business model is novel or key personnel require further scrutiny. Application and annual fees apply, and representatives must be lodged and pay per-representative fees. Realistic first-year set-up costs, including compliance consultancy, PI insurance, examinations and legal review, commonly run from S$40,000 to S$120,000, excluding the net-asset requirement held on the balance sheet. For the corporate secretarial baseline every licensed entity must maintain, see our Section 156 Companies Act Singapore (2026) guide, and for the running-a-company obligations of the underlying vehicle review the Compliance Guide for Singapore F&B Companies (2026) resource.
Step-by-step: licensing an advisory firm
Begin with an activity analysis to confirm which advisory services fall within the Act and whether an exemption applies. Incorporate or repurpose the corporate vehicle, appoint directors, and identify representatives who meet the competency modules. Draft compliance manuals covering suitability, disclosure and complaints handling. Submit the application through the MAS portal with business plans, financial projections and key-personnel details. Respond to MAS queries, attend interviews where required, and on approval lodge representatives before they begin advising clients. Continuing obligations then apply on reporting, conduct and financial resources.
Common mistakes and gotchas
A common error is assuming that advising only accredited or institutional clients removes the need for a licence; the exemptions are specific and must be verified. Another is deploying representatives before they are properly appointed and have cleared the required examinations. Firms also underestimate the ongoing suitability and disclosure obligations, which are enforced through inspections. Finally, PI insurance is sometimes treated as optional; for most licensed advisers it is a continuing requirement.
Related regulatory context
Because advisory firms often touch capital markets products, the Financial Advisers Act and the Securities and Futures Act 2001 are frequently engaged together, and the Companies Act 1967 governs the corporate vehicle underneath. Firms relocating advisers into Singapore should align licensing with immigration; our Singapore EP and S Pass Salary Floors Rising guidance addresses the work-pass timeline.
FAQs
What activities require a Financial Adviser licence? Advising on investment products, issuing investment analyses, marketing collective investment schemes and arranging life policies, unless an exemption applies.
How long does an FA licence take? MAS typically assesses a complete application within about four months.
What is the financial requirement? A licensed financial adviser is commonly required to maintain net assets of at least S$150,000, depending on activity scope.
Who administers the Financial Advisers Act? The Monetary Authority of Singapore.
Can representatives advise before appointment? No; representatives must be appointed and meet competency requirements before dealing with clients.
Authoritative sources: the Financial Advisers Act 2001 at Singapore Statutes Online, licensing guidance at the Monetary Authority of Singapore, and corporate registration at ACRA.
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.