Section 12(1), which was replaced by section 23G of the FAA and the “Representative Notification Framework” towards the end of November 2010, stated that a representative of a licensed or exempt financial adviser could not act for more than one principal at any one time.
The only exclusion applied to principals defined as “related corporations” under section two of the FAA.
According to the Monetary Authority of Singapore (MAS), Tan Kuan Aun Kelvin, Peng Yan and Lim Wee Boon contravened the rule during 2007 and 2008.
Tan represented Magnetron, an insurance broker, and Elpis Financial, a financial adviser, from 18 April, 2007 to 18 June, 2007. Peng worked for Pacific Insurance Brokers and Magnetron between 15 Feb, 2008 and 10 March, 2008, while Lim represented Target Insurance Brokers and Magnetron for a ten-day period during November 2007.
As International Adviser reported, the MAS reprimanded two advisers representing Magnetron for contravention of section 12(1) in April. Magnetron is no longer permitted to provide financial advisory services in Singapore, the authority says.
