MAS issued a consultation paper on Thursday, asking top-level individuals to review business operations of their financial institutions to deliver 'fair dealing outcomes' to consumers.

MAS has provided five guidelines for the financial institutions. These 'fair dealing outcomes', as they are called, are not rules to be applied rigidly.

So unlike the Financial Advisers Act enacted in 2002, which also aims to promote 'transparency' and 'fair dealing' by financial institutions with consumers, these outcomes can be interpreted as principles of conduct, the central bank said.

This means that firms have the 'flexibility' to decide how best to conduct their financial advisory business, MAS said.

The outcomes will not only help them be more competitive, but also ensure that they stay relevant and raise their service standards to retain customers.

One outcome states that firms should ensure that their consumer complaints are handled promptly and dealt with in a consistent manner. There should also be an independent process to ensure the complaints are handled objectively.

'Increasingly, MAS will be looking to the Board and Senior Management of financial institutions to embed fair dealing outcomes in all their business practices,' said Mr Shane Tregillis, MAS' deputy managing director (market conduct).

In the paper, MAS noted there is 'room for improvement' as the industry continues to receive a steady flow of consumer complaints.

It cited a poll they conducted last year to assess consumers' experiences when they deal with financial institutions.

Only about a third of the respondents said they were satisfied. The central bank acknowledged that more could be done.

Interested parties can provide feedback on the guidelines, which are available on the MAS website. Respondents should forward their comments to MAS by May 21.