Financial Adviser (FA): Licence Application

What are the professional indemnity insurance (PII) requirements for financial adviser (FA) licence applicants?

According to MAS (Pages),

(iii) Professional indemnity insurance (PII)

You are required to have in force a PII policy with varying limits depending on the type of financial advisory services provided. The breakdown is as follows:

a) For those advising others by issuing or promulgating research analyses or research reports concerning any investment product only, a PII limit of S$500,000 applies;

b) For all others:

i. With revenue not more than S$5 million, a PII limit of S$1 million applies;

ii. With revenue more than S$5 million, a PII limit that is the lower of (i) 20% of gross revenue or (ii) S$10 million applies.

You can find more details on the financial requirements in Part II, Questions 7, 7A and 8 of the FAQs on Financial Advisers Act, Financial Advisers Regulations, Notices and Guidelines.