Singapore Minister of State Alvin Tan Reply for MAS Chairman Gan Kim Yong: 5 Complaints Yearly Against Finfluencers, Enforcement Actions Taken Agains 6 Individuals Over 3 Years for Providing Financial Advice Without Licence, MAS Expects Financial Institutions to Ensure Hired Finfluencers Present Information in Clear & Balanced Format Highlighting Key Features & Risks

Date: For Parliament Sitting on 13 November 2024 

Name and Constituency of Member of Parliament

Mr Melvin Yong Yik Chye, MP, Radin Mas SMC

Question:

To ask the Prime Minister and Minister for Finance (a) in the past five years, whether MAS has received complaints against online “finfluencers” who discuss financial content; (b) if so, how many; and (c) whether the Ministry will review the Financial Advisers Act 2001 to regulate the “finfluencer” sector.

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 Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:

1.         Finfluencers use social media to share tips and insights on finance-related topics, such as investing, saving, and budgeting. MAS expects financial institutions who employ finfluencers to advertise their products or services, to ensure that the finfluencers present information in a clear and balanced format that highlights key features and risks.

2.         If finfluencers provide financial advice, they must be licensed and regulated under the Financial Advisers Act (FAA). MAS has issued guidelines to clarify that any individual who is remunerated for making a recommendation or expressing an opinion on the buying, selling, or holding of investment products will be considered as providing financial advice. Even if he or she is not remunerated, he will be considered to have provided financial advice if he makes such recommendations or expressions regularly. Posting of general educational content is not financial advice.

3.         Over the past 5 years, MAS received an average of less than 5 complaints per year against finfluencers. Most of these complaints relate to remarks made by finfluencers who were not providing any financial advice, and hence were not subject to regulation by MAS.

4.         MAS and CAD will take enforcement action against individuals providing financial advice without a licence. Over the past 3 years, enforcement action has been taken against 6 individuals, none of whom were finfluencers.