Si Circular 2024: A Comprehensive Overview

Introduction

Si Circular 2024 is a comprehensive document released by the Financial Services Commission (FSC) in Singapore, outlining the regulatory framework for the provision of financial advisory services in the country. This circular aims to enhance the professionalism, transparency, and accountability of financial advisers and ensure that consumers are adequately protected.

Key Provisions of Si Circular 2024

Registration and Licensing

All individuals and companies providing financial advisory services in Singapore must be registered with the FSC and hold the relevant licenses. The requirements for registration and licensing vary depending on the type of advisory services provided.

Code of Conduct

Financial advisers are required to adhere to a strict code of conduct, which includes duties of care, confidentiality, fairness, and disclosure. They must act in the best interests of their clients and provide clear and unbiased advice.

Continuing Professional Development

Financial advisers must complete regular continuing professional development (CPD) to maintain their knowledge and skills. The FSC sets out specific CPD requirements for different types of financial advisers.

Conflict of Interest Management

Financial advisers must manage conflicts of interest arising from their relationships with clients, product providers, and other parties. They must disclose any potential conflicts and take steps to minimize their impact on the advice provided.

Responsibilities of Financial Advisers

Duties of Care

Financial advisers owe a duty of care to their clients to exercise reasonable skill, care, and diligence in providing advice. They must consider the client's financial situation, investment objectives, and risk tolerance.

Suitability Assessment

Before providing investment advice, financial advisers must conduct a suitability assessment to determine if the recommended investments are appropriate for the client. This assessment should consider the client's risk profile, investment horizon, and other relevant factors.

Disclosure of Fees and Commissions

Financial advisers must disclose all fees and commissions they receive from clients and product providers. This disclosure should be clear and transparent, allowing clients to make informed decisions about the services provided.

Protections for Consumers

Complaint Handling Process

The FSC has established a complaint handling process for consumers who have concerns about the conduct of financial advisers. Consumers can lodge complaints directly with the FSC or through the Financial Industry Disputes Resolution Centre (FIDReC).

Compensation Scheme

The Deposit Insurance Scheme (DIS) provides protection to consumers for deposits held with licensed banks and finance companies in Singapore. In the event of a bank or finance company failure, depositors are eligible for compensation up to certain limits.

Conclusion

Si Circular 2024 is a comprehensive regulatory framework that aims to enhance the professionalism and accountability of financial advisers in Singapore. By adhering to the provisions of this circular, financial advisers can ensure that they are providing high-quality services that meet the needs of their clients and are in compliance with the law.