Glossary · regulatory
FAA Section 23B
Also known as: Section 23B, s23B
- Definition
- Section 23B of the Singapore Financial Advisers Act restricts remuneration arrangements between financial advisers and product manufacturers or third parties. It is the basis for treating lead-generation revenue as advertising rather than referral commission.
FAA s23B is read by Singapore counsel as prohibiting a financial adviser from accepting commission or other remuneration for arranging a sale of a financial product otherwise than as part of the published fee schedule. The practical implication for directories, comparison sites, and matching services is that revenue cannot be structured as a kickback on the underlying investment. WealthManagement.sg therefore prices firm participation as a published advertising / featured-placement fee with explicit disclosure.
Source: FAA
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