The remuneration practice of the financial advisory (“FA“) industry is regulated by the Monetary Authority of Singapore (“MAS“). To better align the interests of FA representatives and supervisors with those of their clients, MAS made the following key proposals on remuneration requirements:
- Clarification on policy intent and refinement to the tier structure requirements, including defining “overriding benefits” and when they may be paid;
- New restrictions on direct payment of remuneration to, and acceptance of remuneration by, representatives and/or supervisors of other FA firms.
MAS also suggested extending the application of the proposed refined tier structure requirements to all financial advisers, including exempt financial advisers that operate tier structures.
These proposals come on the back of MAS reprimanding a number of major insurers for failing to meet requirements on remuneration of FA supervisors in June 2021, and are set out in MAS’ Consultation Paper titled “Proposals to Refine the Tier Structure Requirements and to Introduce New Requirements Relating to Remuneration”.
The consultation period is from 12 July 2021 to 13 August 2021.
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