SINGAPORE – Financial institutions such as banks and insurers will soon need to add more controls when marketing their products and identifying potential customers.
The Monetary Authority of Singapore (MAS) on Tuesday proposed that these organisations tighten their controls over online advertisements to avoid putting out misleading content.
They must also tighten practices when appointing third-party service providers to generate leads through the use of online advertisements and collection of prospective customers’ contact information.
For marketing at public places, MAS proposed that there be a limit on the use of gifts to entice customers to make a purchase.
It suggested that customers be given more time to consider if they want to buy a product, and for financial institutions to carry out prospecting activities only on commercial premises.
Existing safeguards such as the disclosure of representatives’ identities and the financial institutions they represent will also be made mandatory.
These proposals are included in two consultation papers released by MAS on Tuesday to enhance safeguards for the prospecting and marketing of financial products.
“We want consumers to receive accurate information and professional advice, and be given sufficient time and space to consider their financial decisions. The proposals to strengthen responsible prospecting and marketing activities by financial institutions will support these goals, and better protect consumers’ interests,” said Mr Lim Tuang Lee, assistant managing director for capital markets at MAS.
The public and financial institutions have until the end of June to submit their views.
MAS in December 2016 had issued guidelines on how financial institutions in Singapore can carry out marketing and distribution activities.
However, it continued to observe conduct issues such as representatives of financial institutions not being upfront with their identities, and that they pressure and harass consumers into buying financial products.
Street canvassing and door-to-door prospecting exacerbated these issues, MAS noted in one of its consultation papers.
