Regulations for Financial Advisory Services

Can a financial adviser hold clients’ funds?


  • If the financial adviser is exempted under and complies with Paragraph 5(1)(g) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations.

    If the financial adviser is exempted under and complies with Paragraph 5(1)(g) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations, including but not limited to where the financial adviser carries on business in fund management for or on behalf of another person (referred to in this paragraph as the client) in connection with any advice that is given by the licensed financial adviser to the client concerning units in a collective investment scheme, whether or not the person relies on the financial adviser’s advice or a portfolio of units in various collective investment schemes provided that, among other things, where the licensed financial adviser receives the client’s money or property, such money or property, except to the extent that it is received wholly for services rendered by the licensee, shall be handed over to the manager or trustee of the collective investment scheme, or any person who is authorised by the manager or trustee of the collective investment scheme to receive a customer’s money or property on its behalf, the holder of a capital markets services licence to provide custodial services which is authorised by the client to receive the client’s money or property or a person exempt from holding a capital markets services licence to provide custodial services which is authorised by the client to receive the client’s money or property not later than the business day immediately following the day on which the licensed financial adviser receives the money or property or at a later date if, and only if, it has the client’s prior written consent to do so.

    Paragraph 5(1)(g) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations