Regulatory Alerts2025-12-26
Added · Updated
MAS Notice FAA-N16 Recommendations on Investment Products
This Notice sets out standards for licensed and exempt financial advisers and their representatives regarding recommendations on investment products, cancelling the earlier FAA-N01 notice. It establishes specific applicability rules, excluding certain simple life policies, factual information provision, and specific over-the-counter derivatives used solely for hedging by non-individual, non-accredited clients. The document defines key terms and mandates that advisers maintain a reasonable basis for recommendations by considering client objectives, financial situations, and knowledge levels. It further requires adherence to know-your-client, needs analysis, and documentation procedures, including specific protocols for identifying and assisting 'selected clients' who may lack adequate qualifications or language proficiency.
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