Key MAS Notices under the FAA — A Reference Map *(Part I)*
Concept
MAS issues Notices under the Financial Advisers Act (FAA) that impose legally binding obligations on financial advisers (FAs) and their representatives. Each Notice targets a specific conduct area — disclosure, anti-money-laundering, competency, suitability, remuneration. Exam questions typically give a scenario and ask *"which Notice applies?"*, so the skill is matching number ↔ duty. (Guidelines accompany many Notices; Guidelines explain but the Notice is the binding instrument.)
Key rules & facts
- FAA-N03 — Information to Clients & Product Information Disclosure: disclose regulatory status, remuneration/benefits, conflicts of interest, and product features/benefits/risks; use plain language; no false or misleading statements.
- FAA-N06 — Prevention of Money Laundering & Countering the Financing of Terrorism (AML/CFT): customer due diligence (CDD), risk-based approach, enhanced due diligence (EDD) for PEPs/higher-risk, ongoing monitoring, suspicious transaction reporting (STR), and record retention (+ Guidelines to FAA-N06).
- FAA-N13 — Minimum Entry & Examination Requirements: the old competency Notice — cancelled 1 Apr 2024, superseded by FAA-N26 (verify effective/cancellation dates).
- FAA-N16 — Recommendations on Investment Products: the reasonable-basis / suitability Notice — KYC, document the basis, and CKA (Customer Knowledge Assessment) / CAR (Customer Account Review) for SIPs (Specified Investment Products); anchored in s.36 FAA.
- FAA-N20 — Balanced Scorecard Framework: grades representative/supervisor remuneration on non-sales KPIs (conduct, suitability), backed by an Independent Sales Audit (+ Guidelines FAA-G14).
- FAA-N26 — Competency Requirements (issued 28 Sep 2023, effective 1 Apr 2024): the current competency/exam Notice that renamed M5 → RES5 (verify dates).
- Others: SFA 04/13-N01 — 7-day cancellation for authorised CIS; MAS Notice 307 (under the Insurance Act) — ILP disclosure & free-look. (verify: structured-product / dual-currency notice references.)
Key data — Notice ↔ topic reference map
| Notice | Topic / duty | Memory hook |
|---|---|---|
| FAA-N03 | Information to clients & product disclosure | Discloses |
| FAA-N06 | AML/CFT (CDD, EDD, STR, records) | Launder-proofs |
| FAA-N13 | Old min. entry/exam reqs (cancelled 1 Apr 2024) | Retired |
| FAA-N16 | Recommendations / suitability (CKA/CAR for SIPs) | Suits |
| FAA-N20 | Balanced Scorecard (remuneration grading) | Scorecards |
| FAA-N26 | Competency requirements (M5 → RES5) | Qualifies (replaces N13) |
| SFA 04/13-N01 | 7-day cancellation for authorised CIS | Cancels a fund |
| MAS Notice 307 (Insurance Act) | ILP disclosure & free-look | Free-looks an ILP |
Exam angle
Mostly recall (number ↔ subject), usually wrapped in a scenario — e.g. *"a rep didn't document why the fund suited the client"* → FAA-N16; *"failed to identify a PEP"* → FAA-N06; *"remuneration ignored conduct KPIs"* → FAA-N20.
⚠ The trap
Confusing the old FAA-N13 with the current competency Notice FAA-N26 (N13 is cancelled/superseded). Also note there is no standalone "FAA-N08" for client money — client-money handling sits in the FAA (s.37) and the Financial Advisers Regulations, not a dedicated Notice. And remember MAS Notice 307 lives under the Insurance Act, not the FAA.
Takeaway
N03 discloses · N06 launder-proofs · N13→N26 qualifies · N16 suits · N20 scorecards — and CIS cancellation (SFA 04/13-N01) and ILP free-look (Notice 307) sit outside the FAA-N series.
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