On 4 June 2018, the Monetary Authority of Singapore (MAS) issued a consultation paper (Consultation Paper), proposing to introduce two new sets of guidelines as follows: (1) Guidelines on Provision of Financial Advisory Service (Financial Advisory Service Guidelines); and (2) Guidelines on the Design of Advisory and Sales Form (Advisory and Sales Form Guidelines).
This client alert focuses on the proposed Financial Advisory Service Guidelines.
The Financial Advisory Guidelines seek to provide clarity to the industry and public on how MAS assesses if a person is deemed to be carrying on the business of financial advisory services, and is particularly relevant to online activities, digital business models and software and aggregator tools.
MAS also provides clarity on specific business activities such as distribution of research reports and portfolio allocation services provided by robo-advisory websites.
The proposed Financial Advisory Guidelines is set out in Annex A to the Consultation Paper.