Competition Commission Singapore (CCS) said the companies, which are all members of the Association of Financial Advisers Singapore (AFA), mutually agreed to “apply pressure” on securities dealer and financial adviser iFAST to withdraw the offer from its website.
An investigation by CSS, a statutory board which investigates alleged anti-competitive activities, found that the agreement was made during an AFA meeting on 2 May 2013.
iFast, which was not a member of the Association of Financial Advisers at the time in question, withdrew its offer for 50% commission rebate on 3 May 2013, the day after AFA’s meeting and just three days after the offer was introduced.
Following the withdrawal, CCS received a complaint on the matter and commenced an investigation into the issue on the grounds of an infringement of the Competition Act, which states that business entities should not “enter into any agreement with the object or effect of preventing, restricting, or distorting competition”.
The companies now have six weeks to make their representations to CCS before it makes its final decision on whether to impose a financial penalty on them.
The companies involved are:
-Cornerstone Planners
-Financial Alliance
-First Principal Finance
-Frontier Wealth Management
-IPP Financial Advisers
-JPARA Solutions
-Professional Investment Advisory Services
-Promiseland Independent
-Ray Alliance Financial Advisers
-Wynnes Financial Advisers
A PID is a written notice setting out the facts on which CCS makes its assessment and its reasons for arriving at the proposed decision. It has been issued to the parties to assist them in making their representations.
CCS is a statutory board which comes under the control of the Ministry of Trade and Industry. Under the Competition Act, it investigates alleged anti-competitive activities and imposes remedies, directions, and financial penalties.
