The Monetary Authority of Singapore (MAS) today (30 May) issued an updated set of Guidelines on Fair Dealing.
A key change, the regulator said, is that the scope of the guidelines has been expanded to apply to all financial institutions (FIs), and all products and services they offer to their customers.
The updated guidelines aim to raise standards of fair dealing and improve the experience of customers dealing with FIs. FIs will be expected to incorporate key principles of fair dealing at various stages of a product’s life cycle, or services rendered.
With the updated guidelines, customers can expect: Products suited to the needs of the target market segment; Advice with suitable product recommendations, accurate representation of information and extra consideration for those who are more vulnerable; Clear explanations on a product and its terms and conditions; and independent and responsive handling of feedback.
First introduced in 2009 under the Financial Advisers Act, the guidelines covered the selection, marketing and distribution of investment products, as well as the provision of advice and post-sales services for these products.
FIs have mostly adhered to the same principles in their dealings with customers beyond advisory services and investment products. The expanded scope of the Guidelines formally recognises this, while keeping unchanged the core objectives of fair dealing and focus on customer outcomes.
Ho Hern Shin, deputy managing director (Financial Supervision), MAS, said: “This update to the Fair Dealing Guidelines reflects MAS’ expectation for all financial institutions to treat all customers fairly. This must be a foundational value championed by boards and senior management.
“Fair dealing should be demonstrated across all activities that impact the customer, from product design to post-sales service. We look forward to financial institutions implementing these guidelines robustly.”
