Marketing financial products? MAS calls for stricter standards

The Monetary Authority of Singapore (MAS) has proposed stricter standards for financial institutions and their representatives when it comes to them prospecting for marketing financial products and customers. 

The proposal was included in two consultation papers which included proposals to enhance safeguards for prospecting and marketing of financial products.

The enhancements seek to raise industry standards by requiring financial institutions to put in place additional controls when engaging in prospecting and marketing activities through both physical and digital means, according to MAS in a statement.

Don't miss: Monetary Authority of Singapore mulls restricting retail access to crypto

MAS first proposes to augment existing safeguards and to introduce new measures to strengthen market conduct particularly with the resumption of roadshows and the increased use of digital applications and social media by financial institutions to market their financial products.

For physical prospecting at public places, existing safeguards such as the disclosure of representatives’ identities and the financial institutions they represent will be made mandatory, said MAS. it continued by saying that financial institutions can only conduct prospecting activities at commercial premises.

They will also need to provide customers with additional time to consider whether to make a purchase and limit the use of gift offers which may influence decision-making.

When it comes to digital marketing, financial institutions should strengthen controls over online advertisements to avoid disseminating misleading content. They must also tighten practices when appointing third party service providers to generate leads online through the dissemination of online advertisements and collection of prospective customers’ contact information, according to MAS.

 “We want consumers to receive accurate information, professional advice, and be given sufficient time and space to consider their financial decisions," said Lim Tuang Lee, the assistant managing director of capital markets at MAS. "The proposals to strengthen responsible prospecting and marketing activities by financial institutions will support these goals, and better protect consumers’ interests.”

Related articles:
Monetary Authority of Singapore mulls restricting retail access to crypto
MAS-backed non-profit Elevandi hands Bud PR duties to build regional presence
MAS fights money laundering via digital platform co-created with 6 banks