Consumers who suspect mis-selling of financial products advised to lodge complaint with banks
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Minister of State for Trade and Industry Alvin Tan said the financial institution would offer redress in cases of mis-selling of financial products.
PHOTO: GOV.SG
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SINGAPORE - Consumers who suspect they are victims of mis-selling of financial products should immediately lodge a complaint with the relevant financial institutions, Minister of State for Trade and Industry Alvin Tan said on Thursday.
“The financial institution is required by regulation to thoroughly investigate the matter where the representative has been found to have mis-sold a product,” he said in Parliament.
The financial institution would offer redress, he added. But should the consumer remain dissatisfied, he can approach the Financial Industry Dispute Resolution Centre for mediation as an avenue to resolve the dispute.
He was replying to queries by Mr Desmond Choo (Tampines GRC) on the impact of undesirable marketing tactics for financial products, such as ambush-style marketing on less financially literate consumers, and the recourse victims have.
Mr Tan, who is a board member of the Monetary Authority of Singapore (MAS), said the authority expects financial institutions and their representatives to conduct their prospecting and marketing activities responsibly and in conducive settings.
For example, the representatives must disclose their identities upfront and clearly to prospective clients. Financial institutions should also monitor the conduct of their representatives at roadshows through site visits.
They should conduct callbacks and surveys to check if clients understood the products they purchased at the roadshows.
MAS recently conducted a public consultation
For physical prospecting in public places, MAS is proposing that existing safeguards such as the disclosure of representatives’ identities and the financial institutions they represent be made mandatory.
In addition, financial institutions can conduct prospecting activities only at commercial premises. They will also need to provide customers with additional time to consider whether to make a purchase, and limit the use of gift offers that may influence decision-making.
It is also proposing that for digital marketing, financial institutions will need to strengthen controls over online advertisements to avoid disseminating misleading content.
Mr Tan added that MAS has also consulted the public over proposals to enhance pre- and post-transaction safeguards.
These include the strengthening of requirements to identify clients, and clients having a trusted individual present during the sales and advisory process. Financial institutions may also be required to audio-record callbacks to such clients and to provide them with the recordings upon request.
