Our Members
FPAS Professional Standards and Code
of Ethics
Introduction
1 Applicability
The reliance of the public and the
business community on sound financial planning and
advice imposes on financial planning professionals an
obligation to maintain high standards of technical
competence, fair dealing and integrity.
Professional Standards reflect the
commitment of Members of the Financial Planning
Association of Singapore (FPAS) to meet a high standard
of professional conduct.
The Professional Standards apply to
all situations where a member of the public engages a
Member of the FPAS for the specific provision of
financial planning services.
The Professional Standards of the FPAS comprise the
following:
a) Code of Ethics as set out in
Article 3
b) Rules of Professional Conduct as
set out in Article 4
In addition, the FPAS will issue
Practice Guidelines from time to time. These Guidelines
are a practical application of the Rules and are
designed to assist Members in their day to day practice.
The Practice Guidelines are not
enforceable in themselves, but may be used to assess
alleged breaches of Professional Standards.
2 Accountability
Professional Standards set standards
of conduct for Members and are enforceable. They may
also be recognised by external bodies (such as
regulators or the courts) as relevant standards for
providing financial planning advice. Professional
Standards are enforced by the FPAS as follows:
2.1 Disciplinary Regulations
All Members are subject to the FPAS' Disciplinary
Regulations. Any alleged breach of the FPAS'
Professional Standards shall be investigated by an
Investigation Committee appointed by the Executive
Committee, and if warranted, referred for further
disciplinary action. Serious breaches of the
Professional Standards may result in heavy penalties as
stated in the Constitution of the FPAS or amendments
made thereto.
Code of Ethics
3 General Standards
The Code of Ethics are general standards that shall apply to all classifications of membership, unless otherwise stated. Every member shall conform to the general standards set out in this Article in their professional activities and conduct.
3.1 Client First
Members shall place the client’s interests first; requiring them to act honestly and not place personal gain or advantage before the client’s interest.
3.2 Integrity
Members shall observe high standards of honesty and integrity in conducting their financial planning business and in the provision of financial planning services.
3.3 Objectivity
Members shall disclose to the client any material limitation on their ability to provide objective financial planning services.
3.4 Competence
Members shall provide competent financial planning services and maintain the necessary knowledge and skill to continue to do so in those areas in which the Member is engaged.
3.5 Fairness
Members shall provide financial planning services in a manner that is fair and reasonable.
3.6 Diligence
Members shall act with due skill, care and diligence in the provision of financial planning services.
3.7 Professionalism
Members shall ensure their conduct does not bring discredit to the financial planning profession.
3.8 Confidentiality
Members shall not disclose any confidential information without the specific consent of the provider of that information unless compelled to by law or as required to fulfill their legal obligations.
3.9 Compliance
Members must maintain knowledge of and comply with the Memorandum and Articles of Association of the FPAS, the FPAS's Code of Ethics and Rules of Professional Conduct, and all applicable laws, rules and regulations of any government, governmental agency, regulatory organisation, licensing agency or professional association governing the members' professional activities
Rules of Professional Conduct
The Rules of Professional Conduct are
specific standards that shall apply to all
classifications of membership, unless otherwise stated.
Every member shall adhere to the rules set out in this
Article in their professional activities and conduct,
and the FPAS may enforce the observation of the rules.
4.1 General Conduct
Rule 1 In the
conduct of professional and business activities, a
Member shall not engage in any act or omission of a
misleading, deceptive, dishonest or fraudulent nature.
4.2 Disclosure Statements to Prospective Clients
Rule 2 A Member
shall ensure that prospective clients are clearly
informed in writing about:
(a) the identity of the Company responsible for the
advice and, if the advice is provided through a
Representative, the identity of the Representative;
(b) the nature of the services offered;
(c) the method of remuneration, fees, commission or
charges associated with the delivery of services;
(d) the access to internal and external complaint
handling mechanisms; and
(e) the nature and extent of
any significant financial relationship or connection
with a product supplier and any other material conflict
of interest.
Rule 3 A Member
shall clearly disclose to all prospective clients the
capacity in which they are able to provide financial
planning services.
4.3 Financial Plan Preparation
Rule 4 At the
earliest point in the relationship, a Member shall
disclose in writing to the client if the Member is only
authorised to sell or advise on a restricted range of
products, and any other limitation of their capacity to
serve the client.
Rule 5 In the
provision of any written recommendation contained in a
financial plan (or a transaction affected by Rule 18), a
Member must disclose to the client in writing that the
Member, the Member's Principal, or an Associate in
connection with the financial planning service will
receive fees, commissions, or rebates from the sale of
products made pursuant to the recommendations. The
disclosure must be included in the recommendation
prepared and issued by the Member.
Rule 6 If financial
planning services are provided orally, a Member must
disclose orally to the client the particulars described
in Rule 5.
Rule 7 In preparing
oral or written recommendations to clients, a Member
shall collect sufficient information to ensure
appropriate advice can be given.
Rule 8 In preparing
oral or written recommendations to clients, a Member
shall conduct or have access to, research on financial
strategies and products that may be appropriate to
achieve the client's identified needs and objectives.
Rule 9 In preparing
oral or written recommendations to clients, a Member
shall develop a suitable financial strategy or plan for
the client based on the relevant information collected
and analysed.
Rule 10 In preparing
oral or written recommendations to clients a Member
shall provide an explanation of the nature of the
investment risks involved in terms that the client is
likely to understand.
Rule 11 A Member
must ensure all significant recommendations are made in
writing. If any significant recommendations are given
orally, then confirmation must be given in writing as
soon as practicable.
Rule 12 A member
shall not make any statements, orally or in writing,
that misrepresent the services they or the Principal is
capable of providing, and the data or facts that are
used to support any recommendation
4.4 Explanation of Financial Plan
Rule 13
A Member must take reasonable steps to place the client
in a position which the client is
to comprehend the recommendations and the basis
for the recommendations. (Note:
the word "likely" has been removed)
4.5 Financial Plan Implementation
Rule 14 In the
appropriate circumstances, Rules 7 to 10 inclusive will
not apply where there is an express documented
instruction by a client to limit or restrict the scope
of the financial planning service normally offered by
the Member (e.g. an execution-only transaction service
or advice limited to a particular area or product or
where a client refuses to provide information sought).
The client must be warned prior to implementing the
relevant transactions about the consequences of the
Member following these instructions.
Rule 15 A Member
must implement all agreed recommendations in an
accurate, efficient and timely manner.
Rule 16 A Member
shall confirm in writing to a client where a subsequent
instruction given by that client significantly alters
the financial strategy or balance of an existing
portfolio under the supervision of the Member.
4.6 Client Service
Rule 17 Should an
actual or potential conflict of interest develop after a
professional relationship has been commenced, a Member
shall promptly disclose in writing the conflict(s) of
interest to the client. The Member must be able to
demonstrate that the client was made aware of any actual
or potential conflict of interest.
Rule 18 A Member
shall not move a client or cause a client to move from
an investment to another investment without explaining
to the client, in terms that the client is likely to
understand, the reasons for the move. The Member must
demonstrate that the move is appropriate for the client.
4.7 Complaints
Rule 19 All Members
must comply with the relevant FPAS Disciplinary
Regulations concerning complaints handling, dispute
resolution and disciplinary procedures.
4.8 Document Administration
Rule 20 A Member
shall ensure that information and relevant documents
given to or gathered by the Member are securely stored
to establish at any time that it has complied with the
FPAS' Professional Standards and the information and
documents must be available for inspection when
required. Such records shall be retained for seven years
from the date the document was last acted upon and may
be destroyed thereafter.
Rule 21 A Member
must, when requested to do so by a client, give to the
client or another person authorised by the client, any
original documents (not photocopies) related to the
provision of financial planning advice for which the
client has paid or will pay for. This does not include
documents which have been prepared or received by the
Member in undertaking the advisory task, such as
internal notes, memoranda, quotes or other working
documents.
4.9 FPAS Reporting and Requirements
Rule 22 A Member
shall not misrepresent the status of their Membership of
the FPAS.
Rule 23 A Member
shall not misstate their authority to represent the FPAS.
Specifically a Member shall not write, speak or act in
such a way as to lead another to believe that the Member
is officially representing the FPAS, unless the Member
has been duly authorised to do so by the officers,
directors or Regulations of the FPAS.
Rule 24 Unless
compelled to by law, or as required to fulfill a legal
obligation, any person who by reason of their membership
in the FPAS or connection with the FPAS is exposed to,
learns of or has access to information and knowledge
concerning the FPAS and/or Members must keep
confidential all such information and knowledge and is
not entitled to communicate or divulge that information
or knowledge or any part thereof.
Rule 25 A Member
shall advise the FPAS within two business days of any
material change to their Authorised status.
Rule 26 A Member
must co-operate with the FPAS in all aspects of any
investigation or compliance review as authorised
pursuant to the Articles and Regulations of the FPAS.
Rule 27 A Member
shall effect and maintain professional indemnity
insurance in accordance with the requirements prescribed
by the FPAS from time to time. A Member must notify the
FPAS in writing immediately of any material change to
its professional indemnity insurance.
4.10 Minimum Education and Competencies
Rule 28 In order to
maintain and improve professional knowledge, skills and
competence, a Member must satisfy all continuing
professional development requirements set by the FPAS
from time to time.
Rule 29 A Member
shall offer advice only in those areas in which the
Member is competent. In areas where the Member is not
professionally competent, the Member shall seek the
counsel of qualified individuals and/or refer clients to
such parties.
Rule 30 A Member
shall have reasonable and appropriate standards for the
appointment of Representatives.
4.11 Supervision
Rule 31 In
determining whether a Member has complied with the
FPAS's Professional Standards, any conduct by its
Representatives or employees which relates to conduct of
the Member's financial planning business shall be
treated as the conduct of the Member.
Rule 32 A Member
shall establish and maintain written policies and
procedures for the effective control and conduct of its
business. This rule does not apply to a Member with only
one practising Representative.
Rule 33 A Member
shall have a written agreement with its Representatives
which defines the rights and obligations of the Member
and the Representative. In the case of an employee
Representative, a statement of conditions and duties
would satisfy this rule. This rule does not apply to a
Member with only one practising Representative.
Rule 34 A Member
must maintain an effective system of supervision of all
Representatives' activities, performance, training and
recommendations made to clients.
DISCIPLINARY REGULATIONS
Discipline and Professional Conduct
1 Disciplinary action
| 1.1 |
A Member shall be liable to disciplinary action in any of the following cases: |
| | 1.1.1 |
if it is alleged that he is guilty of misconduct. For the purpose of this paragraph, misconduct includes, but is not confined to, any of the following: |
| 1.1.1.1 |
if the Member is represented to be guilty of any act likely to bring discredit to himself, the FPAS or the profession; |
| 1.1.1.2 |
if he has been found guilty by a court in Singapore or in any country whose judgements are registrable in Singapore of an offence which would bring discredit to himself or the FPAS; |
| 1.1.1.3 |
if he has been found guilty in any civil proceedings to have acted fraudulently or dishonestly; |
| | 1.1.2 |
if it is alleged that he has performed his professional work or the duties of his employment or conducted his practice inefficiently or incompetently in such a manner as to bring discredit to himself, the FPAS or the profession; |
| | 1.1.3 |
if he has been found guilty in any disciplinary proceedings instituted against him by the FPAS |
| | 1.1.4 |
if it is alleged that he has contravened or failed to comply with any of the Professional Standards of the FPAS; |
| | 1.1.5 |
if he has failed to satisfy a judgment debt or has, individually made an assignment for the benefit of creditors or has, under any resolution of creditors or order of the court or any deed or document, had his estate placed in liquidation for the benefit of creditors or has made any arrangement for the payment of a composition to creditors. |
| 1.2 |
The FPAS may take disciplinary action against any person who has whilst he was a Member been guilty of misconduct or neglect of duty which would have rendered him liable for such action if he had remained as a Member and in such a case, all provisions relating to investigation and discipline shall apply to him as if he were still a Member. |
Investigation Committee
2 Appointment
| 2.1 |
The FPAS may from time to time appoint one or more committees comprising: |
| | 2.1.1 |
4 Members; and |
| | 2.1.2 |
a lay person (in relation to an Investigation Committee, means an accountant, architect, banker, advocate and solicitor, company director, insurer, professional engineer, medical practitioner or a person who possesses such other qualifications as may be approved by the FPAS); |
| |
to be known as Investigation Committees to hear and determine any complaint of professional misconduct made against any Member. |
| 2.2 |
Three Members of the Investigation Committee of whom one shall be the lay person shall constitute a quorum. |
| 2.3 |
An Investigation Committee shall be appointed in connection with one or more matters or for a fixed period of time as the FPAS may think fit. |
| 2.4 |
The FPAS may at any time revoke the appointment of any Investigation Committee or may remove any Member of an Investigation Committee or fill any vacancy in an Investigation Committee. |
| 2.5 |
An Investigation Committee shall have powers to co-opt other Members. |
| 2.6 |
Co-opted Members shall be competent to exercise any of the functions conferred upon Members of the Investigation Committee. |
| 2.7 |
An Investigation Committee may act notwithstanding any vacancy in its Membership provided that there is a quorum; and no act done by or under the authority of the Investigation Committee shall be invalid in consequence of any defect that is subsequently discovered in the appointment or qualification of the Members or any of them. |
| 2.8 |
The FPAS shall appoint a Member of an Investigation Committee to be the Chairman of the Committee. |
| 2.9 |
An Investigation Committee shall meet from time to time for the despatch of business and, subject to the provisions of these regulations, may determine its own procedure and the mode of deciding questions before it. |
| 2.10 |
An Investigation Committee shall not be bound to act in a formal manner and shall not be bound by any law relating to evidence but may inform itself on any other matter in such manner as it thinks fit. |
| 2.11 |
An Investigation Committee may appoint a legal adviser who may be present at any inquiry into any matter to advise the Investigation Committee on all matters of law. |
3 Complaints against Member
| 3.1 |
Any Member or any person may in writing bring to the attention of the President/Executive Director any complaint which indicates that a Member may be liable to disciplinary action. |
| 3.2 |
The President/Executive Director may if he thinks fit require that the complaint be supported by one or more statutory declarations. |
| 3.3 |
Where the President/Executive Director has received any complaint or where facts are brought to his knowledge which satisfy him that there may be grounds for such a complaint, he shall lay the complaint or facts, as the case may be, before an Investigation Committee. |
| 3.4 |
The Investigation Committee shall investigate the matter and determine whether or not it is to be referred to the Disciplinary Committee. |
4 Notice of hearing
| 4.1 |
Before any investigation begins in respect of any matter: |
| | 4.1.1 |
the President/Executive Director shall post or deliver to the Member concerned: |
| 4.1.1.1 |
copies of the written complaint (if any) and of any statutory declaration that may have been made in support of the complaint; and |
| 4.1.1.2 |
a notice setting out any further particulars that may be necessary to disclose the reason for the investigation and inviting the Member concerned within such period as may be specified in the notice (which shall not be less than 14 days) to give to the President/Executive Director any written explanation he may wish to offer and to advise the Executive Director if he wishes to be heard by the Investigation Committee. |
| 4.2 |
The Investigation Committee shall allow the time specified in the notice to lapse and shall give the Member concerned reasonable opportunity to be heard if he so desires and shall give due consideration to any explanation he may make. |
| 3.3 |
The Investigation Committee shall give the Member concerned not less than 14 days’ notice of the time, date and place of the hearing of the case. |
5 Powers of Investigation Committee
| 1.1 |
For the purposes of its investigations, the Investigation Committee may: |
| | 5.1.1 |
call upon or employ any person to make whatever preliminary inquiries it thinks necessary; |
| | 5.1.2 |
require the production for inspection by the Investigation Committee or any person so employed of any books, documents or papers which may relate to or be connected with the subject-matter of the investigation; and |
| | 5.1.3 |
require any Member to give all information in relation to any such books, documents or papers which may be reasonably required by the Investigation Committee or by the person so employed. |
| 5.2 |
Any Member who without lawful excuse refuses or fails to produce to the Investigation Committee or to any person whom the Investigation Committee may employ for the purpose of investigation, any books, documents or papers required for him under rule 5.1.3 or fails to give any such information relating thereto shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 |
6 Matters which Investigation Committee may take into consideration
| 6.1 |
The Investigation Committee may take into account any fact or matter which has been considered by an Investigation Committee on any previous occasion in relation to the Member concerned (in respect of which, although a prima facie case has been made out, no case was referred to the Disciplinary Committee) and if it is decided to refer the case to the Disciplinary Committee then the reference may include all or any of the facts and matters which were on each occasion so considered by the Investigation Committee. |
| 6.2 |
Without prejudice to any other action it may take, if the Investigation Committee is of the opinion that the facts and matters laid before it indicate that the Member may be or may have been managing his practice inefficiently or in whatever occupation of a professional nature has been acting inefficiently or incompetently, the Investigation Committee may, in its absolute discretion, advise the Member to obtain advice from such source as the Investigation Committee may determine. If the Member fails to seek such assistance when advised to do so, that fact shall be recorded. |
7 Hearing before Investigation Committee
| 7.1 |
The Member concerned shall be entitled: |
| | 7.1.1 |
to be heard before the Investigation Committee; |
| | 7.1.2 |
to be represented by an advocate and solicitor or a Member as he may wish; and |
| | 7.1.3 |
to call witnesses. |
| 7.2 |
If the Member concerned does not attend the hearing as fixed, the Investigation Committee may proceed to hear the case in his absence provided it is satisfied that notice of the hearing has been given in accordance with rule 4.3. |
| 7.3 |
All evidence given at the hearing of any matter by the Investigation Committee shall be given orally except that the Investigation Committee shall also be entitled to obtain sworn affidavits from any person if it considers them necessary for the better investigation of the matter. |
| 7.4 |
Where a case of a Member who is liable to disciplinary action under rule 1.1.1.2, 1.1.1.3 or 1.1.3 has been referred to the Investigation Committee, the Investigation Committee shall have discretion to treat as proved any fact accepted by the FPAS or by the court, as the case may be, and the Investigation Committee may report to the Disciplinary Committee in such manner as it thinks fit. |
| 7.5 |
The Investigation Committee shall report its findings to the Disciplinary Committee within 3 months from the date of the commencement of investigation. If the Investigation Committee is unable to do so within such period, it may apply to the President for an extension of time of up to 3 months. Any further extension of time thereafter may be granted by the President on such terms and conditions as it thinks fit. |
Disciplinary Committee
8 Appointment
| 8.1 |
The FPAS shall appoint annually a Disciplinary Committee which shall consist of not less than 4 Members of the FPAS |
| 8.2 |
Three Members of the Disciplinary Committee shall constitute a quorum. |
| 8.3 |
The Disciplinary Committee may, subject to these rules, regulate its own procedures in such manner as it thinks fit. |
9 Decision of Disciplinary Committee
| 9.1 |
Upon consideration of the report of the Investigation Committee, the Disciplinary Committee may order: |
| | 9.1.1 |
in the case of a Member: |
| 9.1.1.1 |
that his name be removed from the register and that he shall cease to be a Member; |
| 9.1.1.2 |
that his registration as a Member be suspended for such period as the Investigation Committee may recommend; |
| 9.1.1.3 |
that he be fined a sum not exceeding $25,000; |
| 9.1.1.4 |
that he be censured; |
| 9.1.1.5 |
that notwithstanding the Investigation Committee’s findings, no further action be taken on the case; or |
| 9.1.1.6 |
that he obtains advice or professional assistance from such source as the Disciplinary Committee thinks appropriate; |
| | 9.1.2 |
The Disciplinary Committee may order the Member concerned to pay to the FPAS such sums as it thinks fit in respect of costs and expenses of and incidental to any investigation and inquiry. |
| | 9.1.3 |
Any penalty imposed or costs and expenses incurred by the FPAS under this section shall be recoverable as a debt due to the FPAS. |
| | 9.1.4 |
The Disciplinary Committee may, where it thinks fit, require an Investigation Committee to consider further evidence and meet for that purpose except that the Member concerned shall be given not less than 14 days’ notice of such further meeting of the Investigation Committee. |
10 Effective date of decision
| 10.1 |
The decision of the Disciplinary Committee shall, unless it is otherwise specified, take effect from the date of the decision. |
11 Surrender of Membership certificate
| 11.1 |
In the event of the name of a person being removed from the register or of a person being suspended from Membership, the certificate of Membership shall be delivered up by him to the Chief Executive Officer to be cancelled or retained during the suspension, as the case may be. |
12 Publication of decision
| 12.1 |
The Disciplinary Committee’s decision taken under these rules may be published in any official publication of the FPAS. Every Member shall be deemed to have agreed, as part of the conditions to join FPAS, that no civil action in defamation may be brought against the FPAS, its officers or any person employed by it for making such official publication. In addition, the FPAS, its officers or any person employed by it shall have qualified privilege in making such publication. |
| 12.2 |
The Disciplinary Committee’s decision taken under these rules may also be referred to the relevant authorities. |
| 12.3 |
For the purpose of this rule, “official publication” includes all local newspapers. |
PUBLIC DISCIPLINE OUTSTANDING
Currently, there are no individuals who have outstanding public discipline. Public discipline consists of revocations, suspensions, and public letters of admonition discussed in the Disciplinary Regulations.
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FPAS Professional Standards and Code of Ethics
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