Introduction of civil penalty regime

• Civil penalties will be included in the Financial Advisers Act (FAA) where the burden of proof is less onerous.

Remedies for investors

• Investors can apply to court for compensation if a financial firm or individual has erred, without having to take individual separate legal action to prove the wrongdoing.

Power to apply to court for injunctions

• The MAS can apply for injunctions under the FAA, such as to temporarily freeze certain payments.

Wider scope of provision on false or misleading statements in the FAA

• This will extend the Act's range to catch financial advisory firms making false or misleading statements, such as omitting a material fact.

LORNA TAN

This article was first published in The Straits Times.