Singapore’s New Due Diligence Requirements for Corporate Finance Advisers

The CF advisor must inform listing applicants about their responsibilities under Singapore’s Securities and Futures Act, as well as their obligations upon admission to the Singapore Stock Exchange.

The corporate finance adviser must conduct background checks on listing applicant’s key personnel, directors, group entities, and controlling shareholders as per the notice.

Corporate finance advisers in Singapore must examine the physical assets of listing applicants and conduct interviews with significant stakeholders such as creditors and key suppliers. In the case of material issues, the adviser must scrutinize supporting documents such as invoices, contracts, and title deeds. They may also gather information from public record databases or delegate the relevant checks and reviews to a third party.

When appointing a third-party service provider, the corporate finance adviser must ensure that the third party’s due diligence meets satisfactory standards and quality.

The corporate finance advisor’s foremost responsibility is to ensure the Singapore Stock Exchange’s suitability of the listing applicant. This includes verifying the completeness of the listing application information and assessing the qualifications of the applicant’s directors in managing the business. The CF advisor plays a vital role in upholding due diligence requirements.