Singapore expands scope of guidelines on fair dealing

It now covers all financial institutions and all the products and services offered.

Singapore’s central bank has updated its guidelines on fair dealing, expanding its scope to apply to all financial institutions (FIs) and all the products and services offered to customers.

The update guidelines aim to raise standards of fair dealing and improve the experience of customers dealing with FIs, according to the Monetary Authority of Singapore (MAS).

FIs are expected to incorporate key principles of fair dealing at various stages of a product’s life cycle or services rendered, MAS said in a press release published at the SG Press Centre.

Customers can expect products suited to the needs of the target market segment; advice with suitable product recommendations, accurate representation of information, and extra consideration for those who are more vulnerable; clear explanations on a product and its terms and conditions; and independent and responsive handling of feedback, according to MAS.

The guidelines were first introduced in 2009 under the Financial Advisers Act. It covered the selection, marketing and distribution of investment products, as well as the provision of advice and post-sales services for these products. The expanded scope maintains these, whilst keeping unchanged the core objectives of fair dealing and focus on customer outcomes.

MAS has recently embarked on revising its guidelines and regulations. These include expanding its regulations for digital payment token providers and planned enhancements to safeguards for elderly and non-English proficient financial clients.