MAS Consults on Revised Notices on Misconduct Reporting Requirements under Financial Advisers Act, Insurance Act, Securities and Futures Act

On 19 April 2022, the Monetary Authority of Singapore (“MAS“) issued a Consultation Paper on “Revised Notices on Misconduct Reporting Requirements under the Financial Advisers Act, Insurance Act and Securities and Futures Act” (“2022 Consultation Paper“). This follows from a 2018 consultation exercise conducted by MAS where it sought views on, among other things, changes to misconduct reporting requirements under the Financial Advisers Act 2001 (“FAA“), Insurance Act 1966 (“IA“) and Securities and Futures Act 2001 (“SFA“). MAS issued its Response to feedback received on the 2018 consultation in 2021.

At present, financial institutions (“FIs“) are required under the FAA, IA and SFA to lodge a report with MAS when they become aware of misconduct committed by their representatives or broking staff. The misconduct reporting requirements are set out in the following existing MAS Notices: FAA-N14 Notice on Reporting of Misconduct of Representatives by Financial Advisers (“FAA Notice“); MAS 504 Notice on Reporting of Misconduct of Broking Staff by Insurance Brokers (“IA Notice“); and SFA 04-N11 Notice on Reporting of Misconduct of Representatives by Holders of Capital Markets Services Licence and Exempt Financial Institutions (“SFA Notice“).

The 2022 Consultation Paper seeks comments on the proposed legal amendments to the FAA Notice, IA Notice and SFA Notice to implement the proposed changes to the misconduct reporting requirements. MAS also seeks views on the new prescribed templates for FIs to submit the misconduct and investigation reports to MAS. The 2022 consultation exercise closes on 20 May 2022.

This Update briefly highlights some of the key proposed changes to the misconduct reporting requirements following feedback from the 2018 MAS consultation and the new prescribed templates for misconduct and investigation reports.