The Financial Advisers Act (FAA) regulates how companies and individuals provide advice on investment products to consumers.
It is administered by the Monetary Authority of Singapore (MAS) and covers advice on products such as unit trusts, foreign exchange and life insurance policies.
Why is it important?
The Act ensures that consumers are protected.
Among other things, it sets minimum entry and examination requirements for those who provide financial advisory services.
It also stipulates that financial advisers must take into account a consumer's investment objectives, financial situation and personal needs when recommending him an investment product.
So you want to use the term? Just say...
The way that relationship manager sold me the Lehman Minibond was an infringement of the FAA.
This article was first published in The Straits Times on 23 November, 2008.
