The action taken against the companies, for which the fines were between S$5,000 ($3,900, £2490, €2,904) and S$216,000, were in relation to the contravention of clauses within either or both the Financial Advisers Act and the Securities and Futures Act.
In November 2010, the MAS launched the Representative Notification System – a system which allows the public to verify whether the representatives they deal with are regulated individuals.
However, during the launch of the RNS, the regulator said it discovered that a number of financial institutions had failed to ensure that the relevant regulated activities were reflected against their representatives’ names. As a result, the MAS said the organisations were in breach of regulations as their representatives were “conducting regulated activities before they were duly appointed”.
The action taken against the companies ranges considerably; from the S$216,000 and S$200,000 fines Citibank Singapore and Prudential Singapore received, respectively, to the reprimands handed down to Barclays Bank and HSBC Insurance to which no monetary fine is attached.
In a statement the MAS said: “All 15 financial institutions have confirmed to MAS that they have completed remedial actions such that all the affected customers have been informed, and where relevant, revalidated the advice previously given and/or reaffirmed the contracts. As a result, customers have not suffered losses. The financial institutions have also put in place policies and procedures to prevent future recurrence.”
In response to the fine, Prudential Singapore said: “Prudential Singapore confirms that we have completed remedial actions from the omission of the range of activities provided by our representatives when the Public Register of Representatives was launched in November 2010.
The company has also ensured that checks and internal controls are in place to prevent future recurrence. We sincerely regret any inconvenience caused to our policyholders and once again wish to assure them of our continued commitment to acting in their best interests.”
