MAS Notice FAA-N16 Recommendations on Investment Products

Notices

Last Revised Date: 29 December 2025

Notice FAA-N16 Recommendations on Investment Products

Requirements for financial advisers and their representatives with respect to recommendations made on investment products.

Representative-related

Disclosures

Advisory and Sales

Record Keeping

Issued pursuant to:

Financial Advisers Act (Cap. 110) section 58

Applies to:

Licensed Financial Adviser

,

Exempt Financial Adviser

View Notice

Notice FAA-N16 Recommendations on Investment Products

(554.5 KB)

This notice applies to:

Licensed financial advisers and their representatives.

Exempt financial advisers and their representatives.

Service companies and their representatives exempt under regulation 29 of the Financial Advisers Regulations.

It sets out the standards to be maintained by financial advisers and representatives when making recommendations on investment products, including assessing a customer’s knowledge and experience in complex products. These requirements cover the following aspects:

Know your client.

Customer knowledge assessment.

Needs analysis.

Documentation and record keeping.

29 Dec 2025 MAS Notice FAA-N16 (Amendment) 2025 (599.4 KB) takes effect. 17 Sep 2021 MAS Notice FAA-N16 (Amendment) 2021 (726.2 KB) takes effect from 9 Oct 2021, except for amendments in respect of paragraph 3 which are effective from 17 Sep 2021.

4 Jan 2019 MAS Notice FAA-N16 (Amendment) 2019 takes effect.

08 Oct 2018 MAS Notice FAA-N16 (Amendment No.3) 2018

(562.1 KB) takes effect.

09 Jul 2018 MAS Notice FAA-N16 (Amendment No. 2) 2018 (521.3 KB) takes effect.

02 Jul 2018 MAS Notice FAA-N16 (Amendment) 2018 (604.4 KB) takes effect.

01 Apr 2017 MAS Notice FAA-N16 (Amendment) 2017 (73.6 KB) takes effect.

29 Apr 2015 MAS Notice FAA (Amendment) 2015 (82.8 KB) takes effect.

11 Dec 2012 MAS Notice FAA-N16 (Amendment) 2012 (167.5 KB) takes effect.

01 Jan 2012 MAS Notice FAA-N16 (Amendment) 2011 takes effect.

Provides guidance to financial advisers on the expanded scope of exemptions to Notice FAA-N16, when advising corporate clients on selected over-the-counter derivatives contracts for hedging purposes.

Proposed legislative amendments to enhance pre and post-transaction safeguards for retail clients

Consultation number:

P005-2024

Start date:

31 July 2024

Closing date:

30 August 2024

MAS response date:

28 March 2025

Requirements for the development and pricing of life insurance products and investment-linked policy sub-funds.

Guidelines for Board and Senior Management on implementing fair dealing outcomes to customers.

This consultation paper seeks to: i. reduce the information collection for recommendation of selected insurance products based on the Basic Financial Planning Guide ii. introduce accompanying safeguards for the collection of a reduced set of information items

Consultation number:

P001-2024

Start date:

02 February 2024

Closing date:

15 March 2024

Outlines rules of thumb for individuals to address their savings, insurance, investment, retirement and legacy planning needs at different life stages.

Requirements and standards in relation to disclosure, investment guidelines, borrowing limits and operational practices for investment-linked policies.

Provides guidance to financial advisers and their representatives on the assessment they must conduct on a client before recommending any complex investment product to their clients.

Guidelines on the standards dealers and their representatives are required to adhere to when providing execution-related advice to clients.

Sets out the circumstances under which financial advisers are permitted to receive or accept remuneration.

Requirements and standards for life insurers as product providers.

Sets out that all licensed insurers are not allowed to pay volume or value-based incentives on the sale of any life policy excepted under stipulated conditions.

Proposed legislative amendments to the Financial Advisers Regulations to exempt execution-related advice on listed excluded investment products from the Financial Advisers Act and consequential amendments to the Notice on Recommendations on Investment Products.

Consultation number:

P006 - 2016

Start date:

29 June 2016

Closing date:

28 July 2016

MAS response date:

30 December 2016

Proposed legislative amendments to raise the competency of FA representatives and quality of FA firms; lower distribution cost by enhancing market efficiency; and promote a culture of fair dealing.

Consultation number:

P022-2014

Start date:

02 October 2014

Closing date:

03 November 2014

MAS response date:

11 May 2015

Proposed recommendations aimed at raising the quality of financial advisers (FA) and competency of FA representatives, improving efficiency in the distribution of life insurance and investment products, and promoting a culture of fair dealing in Singapore.

Consultation number:

P004-2013

Start date:

05 March 2013

Closing date:

04 June 2013

MAS response date:

30 September 2013

Proposed guidance for Board and Senior Management on the implementation of fair dealing outcomes to customers. The fair dealing outcomes include ensuring that consumers receive clear, relevant and timely information to make informed financial decisions and that financial institutions handle complaints in an independent, effective and prompt manner.

Consultation number:

P001 - 2008

Start date:

21 February 2008

Closing date:

21 May 2008

Governs the regulation of financial advisers in Singapore, including their representatives and supervisors.

Proposed guidance on safeguards to guard against representatives advising clients to switch from one designated investment product (i.e. a collective investment scheme, a life policy or any other investment product prescribed by MAS) to another, that is detrimental to the client.

Consultation number:

P006 - 2004

Start date:

14 June 2004

Closing date:

14 July 2004

MAS response date:

26 October 2004