On 13 July 2015, the Financial Advisers (Amendment) Bill 2015 and the Insurance (Amendment) Bill 2015 (collectively, the “Bills”) were passed in Parliament. The Bills are not yet in force.

When in force, the Bills will implement the recommendations of the Financial Advisory Industry Review Panel (the “FAIR Recommendations”). The FAIR Recommendations will raise the standards and professionalism of the financial advisory industry and encourage greater efficiency in the distribution of life insurance and investment products. It will also create a more competitive market for insurance products and empower consumers to make informed decisions through better access to information.

To implement the FAIR proposals, the Financial Advisers Act and the Insurance Act will be amended to achieve the following broad objectives:

  • Improve the remuneration structure of the FA industry to promote fair dealing;
  • Making the provision of financial advisory services a dedicated profession;
  • Enhancing the standards of registered insurance brokers which carry on a business of providing FA services;
  • Facilitating the comparison of life insurance products; and
  • Facilitating inspections of financial advisers by foreign regulatory authorities.

Reference materials

The following materials are available from the Singapore Parliament website www.parliament.gov.sand the MAS website www.mas.gov.sg:

An article about the Bills when they were introduced in Parliament was featured in a previous issue of the Allen & Gledhill Financial Services Bulletin (May 2015). To read the article entitled “Financial Advisers (Amendment) Bill 2015 and Insurance (Amendment) Bill 2015 introduced in Parliament: Implementing FAIR recommendations and inspections by foreign regulatory authorities”, please click here