All Singapore Financial Institutions Now Face Tighter Fair Dealing Requirements

All Singapore Financial Institutions Now Face Tighter Fair Dealing Requirements

by May 30, 2024

The Monetary Authority of Singapore (MAS) has updated its Guidelines on Fair Dealing, now encompassing all financial institutions and the entire range of their products and services.

This expansion aims to enhance standards of fair dealing and improve customer experiences.

The revised guidelines require financial institutions to embed fair dealing principles throughout a product’s lifecycle and the services provided.

Customers can anticipate products tailored to their market segment, appropriate advice with accurate information, special consideration for vulnerable individuals, clear explanations of product terms, and independent handling of feedback.

Initially introduced in 2009 under the Financial Advisers Act, the guidelines previously covered investment product selection, marketing, distribution, advice, and post-sales services.

While financial institutions have generally applied these principles across other services, the updated guidelines formally acknowledge this practice, maintaining the core objectives of fair dealing and customer-focused outcomes.

Hern Shin Ho

Ho Hern Shin

Ho Hern Shin, Deputy Managing Director (Financial Supervision), MAS, said,

“This update to the Fair Dealing Guidelines reflects MAS’ expectation for all financial institutions to treat all customers fairly. This must be a foundational value championed by boards and senior management.

 

Fair dealing should be demonstrated across all activities that impact the customer, from product design to post-sales service. We look forward to financial institutions implementing these guidelines robustly.”

 

Featured image credit: Edited from Freepik