Financial Institutions (FIs) and their representatives are required to ensure that advertisements are not false and misleading, and provide a fair and balanced view of the product to which the advertisement relates. The MAS has observed issues with advertisements posted on digital media (eg. word or character limits, truncate or omit key information) and conduct issues may arise if these risks are not properly managed. The consultation proposes the following.
- New Guidelines on Standards of Conduct for Digital Prospecting and Marketing Activities.
- Board and Senior Management are accountable for its digital prospecting and marketing activities, and ensures policies, procedures and controls are in place.
- Safeguards include selection, assessment and monitoring of digital media, provide guidance and training, and disciplinary actions for errant conduct.
- Apply to digital prospecting and marketing of all financial products and related services
- Requirement for non-product advertisements to be approved, and subject to clarity and legibility requirements.
- Require FIs and their representatives to state their identities (ie. Names and representative number) in advertisements
- Refine the requirements in FAA-N02 on Appointment and Use of Introducers
- Monitor the activities and conduct of lead generation firms and introducers, including the collection, use or disclosure of data
- For digital lead generation, FIs to provide key information to lead generation firms for disclosure to customers
- Implementation – Transition period of six to nine months. Pre-existing advertisements are required to comply with the proposed and updated requirements.
For the full details, please refer to the MAS website https://www.mas.gov.sg/publications/consultations/2023/consultation-paper-on-enhancing-safeguards-for-digital-prospecting-and-marketing-activities
Disclaimer: The information, views or opinions expressed are provided for general information and should not be relied upon as legal or professional advice.