Singapore Minister of State Alvin Tan Reply for MAS Chairman Lawrence Wong on Undesirable Financial Products Marketing Tactics to Less Financially Literate Consumers: Identities Must be Disclosed Upfront, Monitor Conducts at Roadshows & Conduct Call-Backs During Free-Look Period, Consumers Can Lodge Complaints to Financial Institutions & Further Recourse at FIDReC – Financial Industry Disputes Resolution Centre
4th August 2023 | Hong Kong
Singapore Minister of State and Monetary Authority of Singapore (MAS) Board Member Alvin Tan reply for Monetary Authority of Singapore (MAS) Lawrence Wong (Chairman & Singapore Deputy Prime Minister) on undesirable financial products marketing tactics to less financially literate consumers – 1) Identities must be disclosed upfront, 2) Monitor conducts at roadshows, 3) Conduct call-backs during free-look period, 4) Proposed additional 3 to 5 days for clients to review, 5) Proposed limit use of gifts, 6) Events only allowed at commercial locations instead of public areas (eg. streets). Consumers can lodge complaints to Financial Institutions (required by regulation to investigate), and can seek further recourse at Financial Industry Disputes Resolution Centre (FIDReC).” Singapore Minister of State & MAS Board Member Alvin Tan: “MAS expects financial institutions (FIs) and their representatives to conduct their prospecting and marketing activities responsibly and in conducive settings. MAS has recently issued a public consultation to strengthen these safeguards by making them mandatory. MAS has also proposed additional new measures … … A consumer who feels that he has been sold a product through inappropriate means by a representative of an FI should immediately lodge a complaint with the FI. The FI is required by regulation to thoroughly investigate the matter. Where the representative has been found to have mis-sold a product, the FI will offer redress. Should the consumer remain dissatisfied with the FI’s response, he can approach the Financial Industry Disputes Resolution Centre (FIDReC) for assistance. FIDReC’s mediation and adjudication services provide consumers with an accessible and affordable avenue to resolve disputes with FIs.”
“ Identities Must be Disclosed Upfront, Monitor Conducts at Roadshows & Conduct Call-Backs During Free-Look Period, Consumers Can Lodge Complaints to Financial Institutions & Further Recourse at FIDReC – Financial Industry Disputes Resolution Centre “
Singapore Minister of State Alvin Tan Reply for MAS Chairman Lawrence Wong on Undesirable Financial Products Marketing Tactics to Less Financially Literate Consumers:
3rd August 2023
To ask the Prime Minister (a) what is the impact of undesirable marketing tactics for financial products, such as ambush style marketing, on less financially literate consumers; and (b) what recourse do consumers have after buying products as a result of such tactics.
Answer by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board member of MAS, on behalf of Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of MAS:
1. MAS expects financial institutions (FIs) and their representatives to conduct their prospecting and marketing activities responsibly and in conducive settings. MAS has set standards of conduct for such activities. For example –
a. Representatives of FIs must disclose their identities upfront and clearly to prospective clients.
b. FIs should monitor the conduct of their representatives at roadshows through site visits and mystery shopping.
c. FIs should conduct call-backs and surveys within the free-look period to check if clients understood the products that they purchased at roadshows.
2. MAS has recently issued a public consultation to strengthen these safeguards by making them mandatory. MAS has also proposed additional new measures such as requiring FIs to –
a. offer consumers additional time of at least 3 to 5 days to consider their decisions;
b. limit the use of gifts to influence consumers’ decision-making; and
c. conduct roadshows and marketing events only in commercial premises, instead of public spaces such as streets and pedestrian areas.
3. A consumer who feels that he has been sold a product through inappropriate means by a representative of an FI should immediately lodge a complaint with the FI. The FI is required by regulation to thoroughly investigate the matter. Where the representative has been found to have mis-sold a product, the FI will offer redress. Should the consumer remain dissatisfied with the FI’s response, he can approach the Financial Industry Disputes Resolution Centre (FIDReC) for assistance. FIDReC’s mediation and adjudication services provide consumers with an accessible and affordable avenue to resolve disputes with FIs.
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