The Singapore branch of the Hongkong and Shanghai Banking Corporation (HSBC) has been reprimanded by the Monetary Authority of Singapore (MAS) for breaching Section 23B(3) of the Financial Advisers Act (FAA).
Under the section, a principal cannot allow any individual to provide any type of financial advisory service on its behalf, unless the individual is an appointed representative or provisional representative in respect of that type of financial advisory service.
HSBC contravened that when it allowed two representatives, who were not appointed or provisional representatives, to carry out certain financial advisory services, MAS said on Thursday. One representative was found advising others on life policies and arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance, between Jan 27, 2012 and Feb 26, 2013.
The other representative had carried out financial advisory service concerning securities other than collective investment schemes between June 21, 2012, and March 19, 2013.
The regulator said on its website: MAS expects all financial institutions to ensure that they do not permit any individual to provide any financial advisory service under the FAA on their behalf, unless the individual is an appointed representative or provisional representative in respect of that type of financial advisory service.
HSBCs Singapore branch is the second financial institution reprimanded by the central bank this month.
On Nov 6, MAS reprimanded finexis advisory Pte Ltd for similar breaches of the FAA. finexis had allowed an individual, who was not an appointed or provisional representative, to advise others on life policies and to arrange contracts of insurance in respect of life policies on its behalf from Nov 26, 2010 to July 9, 2012.
This article was first published on November 29, 2014.
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