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On 26 June 2012, MAA Financial Planners Pte Ltd (“MAA”) paid a composition amount of $20,000 for contravention of section 13(1) of the FAA and $15,000 for contraventions of written directions issued to MAA on 16 October 2008 under section 58(1) of the FAA.
2 MAA contravened a condition of its financial adviser’s licence and hence section 13(1) of the FAA by allowing four of its representatives to conduct financial advisory services in Singapore without holding a valid financial adviser’s representative’s licence under the FAA.
3 In addition, MAA failed to maintain the requisite transactions logs; failed to ensure that the Chief Executive Officer signs on the log of all switching transactions on a weekly basis; and failed to ensure that its compliance function is exercised in an independent manner and not placed in a conflict of interest situation, as required under the written directions issued to MAA on 16 October 2008. As such, MAA has contravened section 58(1) of the FAA.
4 MAA has informed MAS that it is in process of winding down its financial advisory services.
A financial institution must ensure that any individual it appoints to provide financial advisory services holds the requisite licence. MAS also expects CEOs to discharge the duties of their office properly. MAS expects all licensed financial advisers to comply with the provisions of the FAA, the Financial Advisers Regulations and the conditions of their licence at all times.
