The Monetary Authority of Singapore (MAS) has published two consultation papers with proposals to enhance safeguards for prospecting and marketing of financial products.
The changes 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.
The MAS eyes changes including:
- 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. In addition, 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; and
- For digital marketing, financial institutions will need to 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.
Lim Tuang Lee, assistant managing director for capital markets at the MAS, said: “We want consumers to receive accurate information, professional advice, and be given sufficient time and space to consider their financial decisions. The proposals to strengthen responsible prospecting and marketing activities by financial institutions will support these goals, and better protect consumers’ interests.”
MAS is inviting comments on the proposals by 30 June 2023.
