Regulations for representatives

A representative can be representative for one principal only (sec. 99J(1) SFA), unless the principals are related companies (sec. 99J(2) SFA).

Hereby, “principal means a person whom the representative is in the direct employment of, is acting for or is acting by arrangement with, and on behalf of whom the representative carries or will carry out any” regulated activity / financial advisory service (sec. 2(1) SFA, sec. 2(1) FAA). Regulated activities and financial advisory services are activities regulated under the Securities and Futures Act (sec. 2(1) SFA) or the Financial Advisers Act as applicable (sec. 2(1) FAA).

Although the Securities and Futures Act 2001 in principle governs acts carried out in Singapore or having an impact on Singapore, and the Financial Advisers Act acts that are carried out at least partly in Singapore, we are of the view that the restriction of a representative to work for only one principal extends to financial institutions outside Singapore, i.e. the representative must only work for one financial institution unless the financial institutions are related companies.