Regulatory Alerts2024-07-26
Added
Clarification of MAS Policy Intent Regarding Persons Deemed as Supervisors
The Monetary Authority of Singapore issued this circular to clarify the definition of 'supervisor' under the Financial Advisers Act following compliance failures by financial advisers. It mandates that firms assess whether individuals exercise significant direct or indirect control over representatives' conduct and performance, thereby subjecting their remuneration to Balanced Scorecard and commission capping frameworks. The guidance specifies that payments tied to sales variables constitute variable income requiring strict oversight, while expense reimbursements are excluded, and advises firms to implement robust internal controls to ensure regulatory adherence.
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