[SINGAPORE] The Monetary Authority of Singapore (MAS) is proposing to amend financial advertisement requirements in a bid to boost protection for consumers.
MAS currently requires financial institutions (FIs) to ensure that advertisements are fair and balanced, and not false and misleading. Product advertisements are to also be clear and legible.
But FIs are exempted from complying with these requirements if they are targeting certain persons – including accredited and institutional investors – or marketing certain activities – such as advising on spot foreign exchange contracts other than for the purposes of leveraged foreign exchange trading.
In line with these proposed changes, there will be no exclusions for non-product advertisement requirements, to ensure a consistent approach, MAS said.
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The move follows MAS’ 2023 proposal that enhanced the requirements on non-product advertisements, which aligned requirements for product and non-product advertisements.
An update by law firm Rajah and Tann to its clients said the proposed removal of the existing exclusions “represents a welcome development in ensuring sufficient protection for all consumers who are on the receiving end of advertisements for financial products and services from FIs.”
“Ultimately, trust should underpin all customer communications, beginning with advertisements that convey information accurately and fairly, in a clear and legible manner,” it said.
The firm expects this “will ensure more transparent and ethical advertising across all classes of advertisements for all consumers”.
FIs polled by The Business Times are supportive of the move, and noted that they are already compliant with the rules.
Interactive Brokers chief executive Lin Yujin said: “The close alignment of our operational philosophy and practices with the interests of our clients has ensured that we are already fully compliant – and in many cases more than compliant – with advertising requirements.”
Dennis Lee, head of group risk and prevention for global consumer financial services at OCBC, added: “The proposed exclusions will provide a level playing field and ensure all financial industry players apply the principles of fair dealing and transparency to all investors, regardless of their level of sophistication.”
