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Source:
www.mas.gov.sg |
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MAS Issues Guidelines on Fair
Dealing – Board and Senior Management Responsibilities for
Delivering Fair Dealing Outcomes to Customers |
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MAS has issued the Guidelines on Fair
Dealing – Board and Senior Management Responsibilities for
Delivering Fair Dealing Outcomes to Customers (Click
here to view the Guidelines) to promote fair dealing by
financial institutions when they conduct business with their
customers. |
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The Guidelines emphasise the
responsibilities of the Board and Senior Management of financial
institutions to deliver fair dealing outcomes when providing
financial advisory services to customers. There is a deliberate
focus on outcomes in the Guidelines as customers are concerned about
their experiences when dealing with financial institutions, and
whether the investment products and services they buy provide real
value. |
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The Guidelines set out five fair dealing
outcomes. The Guidelines are to be read together with the Financial
Advisers Act, and apply to the selection, marketing and distribution
of investment products and the provision of advice for these
products. They also cover responsibilities for after-sales services
and complaints handling. The five fair dealing outcomes are: |
(i) Customers have confidence that
they deal with financial institutions where fair dealing is
central to the corporate culture.
(ii) Financial institutions offer
products and services that are suitable for their target customer
segments.
(iii) Financial institutions have
competent representatives who provide customers with quality
advice and appropriate recommendations.
(iv) Customers receive clear,
relevant and timely information to make informed financial
decisions.
(v) Financial institutions
handle customer complaints in an independent, effective and prompt
manner.
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The five fair dealing outcomes provide
clear benchmarks for MAS and the industry for assessing the success
of financial institutions in promoting good market conduct
practices. MAS will consider financial institutions’ ability or
failure to observe the Guidelines in assessing whether they continue
to be fit and proper to conduct regulated activities. |
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Shane Tregillis, Deputy Managing
Director, Market Conduct, MAS said, “Financial institutions will
need to work hard to regain the confidence and trust of their
customers. MAS expects the Board and Senior Management of all
relevant financial institutions to be able to clearly demonstrate
that their strategy, policies, systems and processes support the
five fair dealing outcomes." |
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MAS thanks respondents for their
feedback on the Guidelines when they were released for consultation
in February 2008. MAS will update the Guidelines, where appropriate,
to incorporate comments received on the Consultation Paper on
“Review of the Regulatory Regime Governing the Sale and Marketing of
Unlisted Investment Products”, as well as industry developments in
Singapore and other jurisdictions. |
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MAS encourages industry and consumer
associations to play an active role in promoting fair dealing
outcomes for customers. We will work with our MoneySENSE partners to
enhance current financial education efforts. MAS will issue consumer
guides and support activities to help consumers understand the
Guidelines and what they can expect from their financial
institutions. |
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Source:
www.mas.gov.sg
Press Release
3
Apr 2009 |
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FrontPage Edition: Thu 9 Apr 2009
