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  • DA-4.1 DA-4.1 Ongoing Disclosure

    • DA-4.1.1

      Further to the requirements under BC-2.6 of Module BC of the Rulebook, licensees providing digital financial advice must ensure that the following are disclosed to their clients:

      (a) adequate explanations about the functioning of any client facing tool including whether there are affirmations or confirmations that the client would provide as the tool is being populated;
      (b) at key points in the advice process, inform the client about the limitations and potential consequences of the scope of advice in plain and simple language
      (c) throughout the advice process, inform the client about key concepts and the relevant risks and benefits associated with the advice being provided; and
      (d) disclose separately the fees, costs and charges.
      Added: April 2019

    • DA-4.1.2

      Licensees must disclose to their clients in writing the following with respect to the algorithms used:

      (a) assumptions, limitations and risks of the algorithms;
      (b) circumstances under which the licensees may override the algorithms or temporarily halt the digital advisory service; and
      (c) any material adjustments to the algorithms.
      Added: April 2019

    • DA-4.1.3

      Licensees that provide general financial advice to non-retail clients must provide a warning that such advice does not take into account the client's profile and personal circumstances.

      Added: April 2019

    • DA-4.1.4

      For the purpose of Paragraph DA-4.1.3, general financial advice is defined as financial advice that does not take into account the particular personal circumstances, such as the objectives, financial situation and needs of the client. For example, if an adviser gives information about a product but does not consider the financial goals of the client and the adviser does not actually recommend the client to specifically take up the said product, it is considered general advice.

      Added: April 2019