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Chap 9 - Coggle Diagram
Chap 9
Exemption for
specialised units
regarding high net worth
High net worth individual
More than $300,000
in annual income
More than $1 million
in financial assets
Potential to have
more than $1 million
in assets in
2 years
More than
$2 million
in
net personal assets
Assessment
criteria
Track record of applicant
Range of products and services
offered by the unit
Unit should have own
marketing
or
client service staff
Applicant may be licensed FA or exempt FA
Circular on Due Dilligence Checks
Fit and Proper Declaration
FAs should obtain written self-declarations from representatives
Fit and Proper
Financial soundness
Has been subject of
winding-up petition
Unable to fulfill financial
obligations in Singapore
Subject of a bankruptcy petition
Honesty, Integrity & Reputation
Competence and capability
Due Dilligence Checks
Guidelines on
standards of conduct
Due care and dilligence
Prompt execution of client's orders
followed by prompt confirmation
Proper supervision of reps
and their activities
Ensure liabilities/obligations to clients have
been discharged before cessation of business
Disclosure to Client
Renumeration
Amount of soft commissions
or trailer commissions
Amount of distribution cost but not
amount and type of renumeration
for life policy
FA License
Criteria
CEOs and EDs have
minimum 5 years
working experience
Minimum 3-year
proven track record
If cannot then CEO should own
not less than 20%
shares of applicant
Guidelines for
Approval of Arrangements
Foreign company allowed to provide FA service if related corporation is
licensed or exempt FA