Guidelines to Notice SFA04-N16 on Execution of Customers' Orders

17 Nov 2022 Legal Highlights

The MAS has amended its Guidelines to MAS Notice SFA 04-N16 on Execution of Customers' Orders to introduce a new section on payment for order flow ("PFOF") arrangements – which refer to commission or other payments that a broker receives in return for routing its customers' orders to another broker or counterparty. The new section in the guidelines make it clear that a CMS licence holder for dealing in capital markets products should not receive PFOF when placing and/or executing its customers' orders as it introduces conflicts of interests and is likely to cause harm to customers. PFOF arrangements came under the spotlight following the GameStop saga in early 2021 and these amendments now make clear MAS' stance towards such arrangements. Do note however that the new section in the guidelines relating to PFOF arrangements will only come into force on 1 April 2023.


The amended guidelines may be accessed here.


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