MAS issued the consultation paper on 25 April 2023. This response pertains to proposed amendments to the advertisement requirements under the Financial Advisers Regulations, Securities and Futures (Licensing and Conduct of Business) Regulations, (jointly “Advertisement Regulations”) and Notice FAA-N02 on Appointment and Use of Introducers.
- Definitions – No changes to the definitions of “advertisement”, “product advertisement” and “non-product advertisement”. Refer to Frequently Asked Questions on Fair and Balanced Advertising and Other Advertising Restrictions (the “Advertisement FAQs”).
- Non-product advertisement approval – Extend the existing requirements for financial institutions’ approval of product advertisements to non-product advertisements. Senior management may delegate the approval to other competent personnel or committees. This is aligned with the current approach for the approval of product advertisements under Regulation 22A of the FAR and Regulation 46AA of the Securities and Futures (Licensing and Conduct of Business) Regulations.
- Disclosure of identities in the advertisement –
- Does not require the identities of both the financial institution and the representative to be present in all advertisements, depending on the circumstances.
- Financial institutions should state their names as listed in the Financial Institutions Directory (“FID”) at least once when disclosing their identities in advertisements. May use shortened or alternative names, provided the official FID-listed name appears at least once in the same advertisement.
- Representatives to disclose representative numbers in advertisements. Names are not required.
- Pre-existing advertisement – Not required to comply with the new requirements if published before the effective date of the updated Advertisement Regulations.
- Enhancements to Notice FAA-N02 on Appointment and Use of Introducers –
- Digital lead generation constitutes introducing activity as defined in the FAR, and lead generation firms are introducers as set out in FAA-N02.
- In-scope as introducers – Introducers that generate leads exclusively via digital media, conduct all introducing activities through digital channels only, without direct consumer interactions. Share consumers’ particulars and contact information with the financial institution without engaging in direct consumer interactions.
- Out of scope introducers – Engaged by financial institutions solely to advertise their products and services online without obtaining consumers’ personal particulars or transmitting such information to the institutions. They will need to comply with Advertisement Regulations and supervisory expectations set out in the Guidelines on Standards of Conduct for Digital Advertising Activities.
- Data handling by introducers – Not required to be handled in accordance with financial institutions’ data management policies. FI should ensure that their written agreements with introducers clearly specify requirements on how introducers should collect, disclose, and dispose of consumer data.
- Approval of introducer advertisement – Required to be approved by the financial institution.
- Implementation timeline – 9-month transition period from the date of issuance of the updated Advertisement Regulations and Notice.
- Exclusions Removal Consultation – Responses will be issued at the same time of the updated Advertisement Regulations.
For the full details, refer to 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.