Law of investments and Financial Markets Week 1 Introduction to the law of investments and Financial Markets

Regulators- Singapore
MAS- Monetary Authority of Singapore Singapore Stock Exchange

Regulators- Singapore
MAS- Monetary Authority of Singapore MAS' Mission To promote sustained non-inflationary economic growth, and a sound and progressive financial centre. MAS' Objectives To conduct monetary policy and issue currency, and to manage the official foreign reserves and the issuance of government securities; To supervise the banking, insurance, securities and futures industries, and develop strategies in partnership with the private sector to promote Singapore as an international financial centre; and To build a cohesive and integrated organisation of excellence. http://www.mas.gov.sg/ 3

Regulators- Singapore http://sgx.com

Mission Statement :SGX offers a comprehensive and efficient infrastructure for raising capital, and for investors to transact and clear financial products. As a leading marketplace, we strive to continually innovate and provide our customers with convenient access, quality products and the best price discovery at a competitive cost while seeking to create value for our shareholders. Singapore Exchange Limited (SGX) is Asia-Pacific's first demutualised and integrated securities and derivatives exchange. SGX was inaugurated on 1 December 1999, following the merge of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). On 23 November 2000, SGX became the first exchange in AsiaPacific to be listed via a public offer and a private placement. Listed on our own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index 4and the Straits Times Index.

Source of Investment Law (Singapore)

Statutory Law Securities and Futures Act 2002, Financial Advisers Act 2002 ( replaced the Securities Industry Act, Futures trading Act, Insurance Intermediation Act.) FAA regulations MAS Guidelines- MAS has power under s.64 to issue Notices, guidelines( breach of guidelines-no criminal sanctions c/f breach of notices,) Common Law or Case Law - Contract Law, Negligence and Fiduciary Duty

Source of Investment Law (Singapore)

Codes, guidelines, etc., by Authority 64. (1) The Authority may issue, and in its discretion publish by notification in the Gazette or in any other manner it considers appropriate, such codes, guidelines, policy statements, practice notes and no-action letters as it considers appropriate for providing guidance (a) in furtherance of its regulatory objectives; (b) in relation to any matter relating to any of the functions of the Authority under this Act; or (c) in relation to the operation of any of the provisions of this Act.

Legal Framework Singapore

FAA Purpose to govern all financial advisory activities in respect of investment products and the marketing of specific investment products namely life insurance policies and collective investment schemes across all financial institutions, from banks, life insurance Cos and insurance brokers through to independent advisers BG Lee Hsien Loong

Legal Framework Singapore

FAA Important definitions: 6(1) (a) & (b) financial advisers need to hold a financial advisers licence when providing a financial advisory service ( unless exempt) 22 No person shall hold himself out as a Financial adviser unless he has a licence Financial advisory service defined in Schedule 2 7(1) & (2) representatives must have a representatives licence
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 Notice on minimum entry and examination requirements for representatives FAA No 7 Guidelines on licence applications and payment of fees Guidelines on criteria for granting licence Notices on recommendations on Investment products ( KYC) FAA-No 1 Notice on information to clients and product information disclosure FAA No 3 Notice on appointment and introducers by FA Guidelines on standards of conduct for FA GO 4 Guidelines on the use of the term independent by FA Guidelines on fit and proper criteria
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Important definitions: financial adviser a person who carries on the business of providing any financial advisory service s.2 FA need to hold a FA licence when providing a financial advisory service ( unless exempt) Financial Advisory service includes rendering financial advice, the promulgation of analyses and reports concerning any investment product and the marketing of any investment scheme and life insurance contracts CMFAS exam for people intending to carry on activities under the FAA and SFA
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