Financial Advisers Licenses

Financial Advisers Licenses are issued by the Monetary Authority of Singapore (MAS), specifically under the Financial Advisers Act (FAA) (Cap. 110 or 2001). This licensing regime is distinct from the Payment Services Act (PS Act) and the Securities and Futures Act (SFA), although there are interconnections within Singapore’s financial regulatory framework.

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Here’s a breakdown of information regarding Financial Advisers Licenses based on the provided sources:

• Regulatory Authority: The MAS is the authority responsible for regulating licensed financial advisers.
• Purpose: While the sources do not explicitly detail the purpose of the Financial Advisers Act, they indicate that it regulates “providing financial advisory services”. These services are part of the broader financial products and capital raising landscape supervised by MAS.
• Types of Entities: Entities that are “Licensed Financial advisers” or “Exempt Person Providing Financial Advisory Services” are subject to MAS oversight and utilise MASNET e-services.
• Interrelation with other Acts:
  • The Companies (Model Constitutions) Regulations 2015 and Companies Act 1967 indicate that a person can be disqualified from being a director by virtue of provisions in the Financial Advisers Act, specifically section 57.
  • The Income Tax Act 1947 refers to “a holder of a capital markets services licence licensed to carry on business in the following regulated activities under the Securities and Futures Act 2001… (other than any person licensed under the Financial Advisers Act 2001)”. This suggests that there can be overlaps in activities, but distinct licensing requirements. Similarly, it mentions exemptions under section 20(1)(g) of the Financial Advisers Act 2001.
  • The Payment Services Act 2019 guidelines mention “financial advisory” as another activity regulated by MAS, which an applicant for a payment services license might also intend to conduct.
• Financial Institutions and MAS Approval: More broadly, sources refer to financial assistance or services provided by an “institution licensed or approved by the Monetary Authority of Singapore” on normal commercial terms and in the ordinary course of business. This encompasses entities licensed under the Financial Advisers Act.
• Regulatory Submissions: Like other MAS-regulated entities, financial advisory companies and exempt persons providing financial advisory services are listed as users of MASNET for various functions, including viewing circulars and receiving emails.
• Compliance Landscape: SingaporeLegalAdvice.com explicitly lists “CMS and Financial Advisor Licence Applications” under its “Fintech and Financial Regulation” services, indicating that obtaining these licenses is a key part of navigating the regulatory landscape for financial technology and financial services businesses.

In essence, Financial Advisers Licenses are crucial for individuals and corporations that provide financial advisory services in Singapore, operating under the specific regulatory framework of the Financial Advisers Act, with oversight from MAS.