MAS issues guidance on Fit and Proper Certification of Representatives
11 Feb 2011
On 26 November 2010, the regulation of representatives carrying out capital markets services (“CMS”) or providing financial advice (“FA”) underwent a significant change. Prior to that date, CMS or FA representatives had to apply to the Monetary Authority of Singapore (“MAS”) for a licence to conduct the business activities they carried out for their principals.
Under the new representative notification framework (“RNF”), financial institutions (“FIs”) wishing to appoint CMS or FA representatives are required to notify MAS of their intention. They must also ensure that their representatives meet the following conditions:
- they are at least 21 years of age;
- they satisfy certain minimum academic qualification and examination requirements; and
- they satisfy the “fit and proper” criteria found in the MAS Guidelines on Fit and Proper Criteria (the “Guidelines”).
Within the notification form, the FI must also certify and declare that the representative is fit and proper to carry out the relevant type of activity or service (the “Fit and Proper Declaration”). Thus there is a shift in emphasis towards self-regulation under the new RNF, where the onus to check the representative’s qualifications lies with the FI wishing to appoint the representative.
MAS has now issued a circular titled “Due Diligence Checks and Documentation in Respect of the Appointment of Appointed, Provisional and Temporary Representatives” (the “Circular”). The Circular provides guidance on the types of measures which an FI should take in order to submit the Fit and Proper Declaration.
To read the update, please click here.