MAS announces principles relating to internet-based securities activities

In a speech to the Singapore Investment Banking Association, Deputy Prime Minister and Monetary Authority of Singapore (MAS) Chairman, Lee Hsien Loong, announced that MAS has completed its review of licensing requirements for internet-based securities activities. The five principles that will guide the determination of whether licensing will be required for certain securities activities are: the context and circumstances; a ‘fact versus opinion’ test in determining what is investment advice; whether trade orders are channelled (as opposed to referrals for opening of trading accounts); whether a website is a passive conduit for investment advice or dealing; and whether an overseas website specifically targets Singapore residents. MAS will incorporate necessary changes in the proposed Financial Advisers Act and Omnibus Futures and Securities Act, which are expected to be enacted next year.