ALL financial institutions will now need to apply the fair-dealing guidelines set up by the Monetary Authority of Singapore (MAS) to the products and services they offer.
The updated guidelines aim to raise standards of fair dealing, and improve the experience of customers dealing with these financial institutions, MAS said on Thursday (May 30).
The guidelines were introduced in 2009 under the Financial Advisers Act, and covered the selection, marketing and distribution of investment products, as well as the provision of advice and post-sale service for these products.
With the update, all financial institutions will be expected to incorporate key principles of fair dealing at various stages of the life cycle of a product or service rendered, MAS said.
For consumers, this would mean getting products that best suit their needs. They can also expect clear explanations of a product and the accompanying terms and conditions, and independent and responsive handling of feedback.
Financial institutions now have to provide suitable product recommendations and accurate information. They also have to take extra consideration for consumers who are more vulnerable.
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While financial institutions have mostly adhered to these principles in their dealings with customers beyond advisory services and investment products, the expanded scope formally recognises this, while not changing the core objectives of fair dealing, and focuses on customer outcomes.
Ho Hern Shin, deputy managing director of financial supervision at MAS, said: “(Treating customers fairly) must be a foundational value championed by boards and senior management.”
Banks in Singapore welcome the move.
Lam Chee Kin, group head of legal and compliance at DBS, said conducting business responsibly and acting in the best interest of customers is key to maintaining trust, which is “the bedrock of banking”.
Robert Oates, chief risk and compliance officer at HSBC Singapore, expects the revised guidelines will promote transparency, integrity and fair outcomes for customers, including those with enhanced needs.
Tibor Pandi, Citi country officer for Singapore, added: “We fully support the expanded guidelines, as they will ensure that all customers receive responsible advice from all financial institutions in Singapore, and this is something we fully believe in.”
