New guidelines for finance industry in S’pore to keep misleading online financial content in check

SINGAPORE – Financial institutions sharing financial content online will have to ensure it is not misleading or inappropriate, under guidelines released by the Monetary Authority of Singapore on Sept 25.

The guidelines set out MAS’ expectations for financial institutions (FIs) and their digital marketers to conduct digital advertising activities in a responsible and professional manner.

They include five safeguards that FIs should adopt to manage the risks associated with their digital advertising activities, such as social media platforms’ constraints on word count that may result in the omission of key information such as product risks.

The recommended measures take effect from March 25, 2026, for FIs, which include banks, insurers and capital market services providers such as fund management companies and brokerages.

Mr Chan Wai Kit, executive director of the Life Insurance Association (LIA) Singapore, said this is a timely and important step as the industry collectively seeks to foster greater trust and transparency in Singapore’s digital financial landscape.

“The guidelines provide a clear framework that aligns with and reinforces the industry’s commitment to ensuring higher standards of professionalism and ethical conduct in digital advertising activities,” he said.

MAS first consulted the industry in April 2023 on its intention to enhance the safeguards for online financial content. Since the consultation, the use of digital media has continued to grow.

“Digital platforms, including social media, have increasingly become sources of financial information for consumers,” the regulator said in a statement. 

It noted that these platforms have a broad reach and are able to connect with the retail public to facilitate financial education and enhance understanding of financial concepts. 

However, digital platforms can also amplify misleading or inappropriate content if their use is not managed properly, MAS said.

Social media platforms’ constraints on word or character counts may result in the leaving out of key information about the features, risks and terms and conditions of a financial product or service. This can result in misleading and unbalanced advertisements, it noted.

MAS has also observed instances where the representatives of FIs used deceptive practices to solicit leads on certain social media platforms. For example, there have been reports of insurance agents who go on dating apps such as Tinder to find prospective clients.

There were also situations where non-compliant advertisements were disseminated via social media without the FI’s prior knowledge, noted MAS.

The five safeguards suggested by the regulator arose out of these concerns.

These safeguards apply to all FIs and their appointed third parties, including online content creators.

Two of the safeguards pertain to the choice of the digital platforms.

The first recommends that FIs should assess and ensure that their choice of digital media is appropriate for advertising financial products and services to customers.

For example, they should consider the reputation, track record and practices of the digital medium, and if that platform poses any market conduct or reputational risks to them if they use it.

The second safeguard is about making sure that the content is clear and fair, bearing in mind that social media platforms often have format constraints such as word or character counts. These constraints may result in the omission of key information such as the risks of the product or service.

FIs should thus ensure that important and meaningful disclosures are shown prominently and clearly.

Each advertisement on digital media should not be misleading when viewed on its own.

For instance, it is inappropriate to highlight only the benefits of a financial product in an advertisement while mentioning risks in a separate webpage.

The remaining safeguards relate to the choice and oversight of a digital marketer.

The third safeguard is that FIs should have a framework to assess and select appropriate digital marketers. They could do so by looking at selection criteria such as their qualifications, how they communicate and their track record in conducting advertising campaigns for the financial sector.

FIs need to ensure the marketers’ activities align with their practices and relevant regulatory requirements, and have measures to identify and manage conflicts of interest that can arise from such engagements.

The fourth safeguard states that FIs should monitor digital advertising activities and content posted online to ensure they have effective oversight of these activities.

Some ways that they can track the activities would be through the use of online media surveillance tools such as web crawlers and social media listening tools, as well as through online mystery shopping exercises. 

Finally, FIs should take disciplinary action when needed against digital marketers to deter malpractices and errant digital advertising conduct.

This may include disciplinary action such as warnings, reprimands or suspensions of their internal digital marketers. In the case of external partners, FIs could consider penalties or even ending the engagement.

LIA’s Mr Chan said the industry appreciates the authorities’ recognition of the unique challenges presented by the various digital media forms as well as the emphasis placed on ensuring that product disclosures are prominent and clear.

MAS will hold the board and senior management accountable for the proper conduct of their institutions’ digital advertising activities.

While they can delegate these responsibilities to other people or committees with the necessary capacity, competence and authority, they cannot delegate their accountability, MAS noted.

Financial institutions take MAS’ guidelines seriously, its spokesperson said in response to queries from The Straits Times over the teeth in these guidelines.

The spokesperson added that the regulator will “engage in enhanced supervisory dialogue and conduct appropriate follow-up measures” with FIs that do not implement the prescribed safeguards.

Mr Chan noted that a collaborative approach between the authorities and the industry is vital for building a responsible and trustworthy digital ecosystem for financial services in Singapore.

Ms Carmen Wee, chief executive of the Investment Management Association of Singapore, said the guidelines are a key step in strengthening Singapore’s reputation and integrity as a leading financial hub.

“Quality advice empowers individuals, but it must be delivered with accountability,” she noted, adding that the measures will hopefully help strike a balance between raising standards and supporting those who genuinely want to help others make better financial decisions.

The 7 things Singapore’s content creators must know before sharing financial tips online

Build trust with followers

1. How do I share responsibly?

2. What are some financial tips that I can consider sharing with my followers?

The licence lane: where do you stand?

3. When do I need to have a licence for providing financial advice?

You may need a licence by the Monetary Authority of Singapore (MAS) when you:

Note: Simply disclaiming “this is not financial advice” does not absolve you from legal liabilities. If you are unsure, please consult the MAS Guidelines on Provision of Financial Advisory Service (FAAG17) or seek legal advice.

4. When do I need to have a licence for dealing in capital markets products?

You may need a licence by MAS when you:

Choose collaborations carefully

5. How do I check if a financial institution is legit to promote?

6. How do I keep my promotional content professional and compliant with advertising rules?

7. Should I disclose sponsored content?