How it works
The fact-find collects the facts. The needs analysis works out what they mean: what the client wants to cover or save for, what they already have, what's missing, and what they can afford. The recommendation comes out of that gap.
In Singapore it's a requirement. Section 36 of the Financial Advisers Act says you need a reasonable basis for any recommendation. MAS Notice FAA-N16 then sets out what that means in practice:
- Analyse what the client told you and identify a product that suits them.
- If no suitable product exists, tell the client.
- Explain the basis for your recommendation, and write it down.
- Record the client's statement of their objectives, situation and needs, your basis, and your assessment of the product's disadvantages for them.
- If the client won't give you the information, or picks a product you didn't recommend, you can go ahead. You have to document their decision and tell them in writing that its suitability is their responsibility.
For life policies, MAS also expects you to follow the Life Insurance Association's Minimum Standard for Life Insurance Advisery Process.
MAS's Basic Financial Planning Guide gives rules of thumb that many firms build into their FNA: cover of 9 times annual income for death and total permanent disability, 4 times for critical illness, and no more than 15% of take-home pay spent on protection.
Worked example, with a made-up client: the fact-find shows two young children, a home loan and one employer group policy. The analysis sets what they want covered against what they already hold, and writes down the gap and the basis for any recommendation. If they won't share their income, you document that and tell them in writing that suitability is their responsibility.
Where it shows up in your week
The needs analysis sits between the first meeting and the closing one. The sales funnel shows what share of your Openings reach a Closing, counted from what you log, and names your weakest step.
Related terms
Questions advisors ask
The fact-find collects the client's information. The needs analysis works out from it which product suits them and why.
No. The Basic Financial Planning Guide isn't a regulatory requirement, and MAS says the client's own needs can take a recommendation above or below it.
You can go ahead at their request. Document their decision and tell them in writing that the product's suitability is their responsibility.
The client's objectives, situation and needs, your reasonable basis for the recommendation, and your assessment of the product's disadvantages for them.
Sources
- MAS Notice FAA-N16, Recommendations on Investment Products, last revised 29 December 2025, paragraphs 28 to 32, 34 and 35, read 2 November 2026
- MAS, FAQs on the Basic Financial Planning Guide, the rules of thumb and the guide's status, read 2 November 2026