MAS introduces enhanced safeguards around public events by financial institutions

[SINGAPORE] The Monetary Authority of Singapore (MAS) on Monday (Oct 12) announced more safeguards around public prospecting activities by financial institutions.

This comes as these activities, including roadshows, allow financial institutions and their representatives to engage consumers and market financial products and services in public places, and may cause “concerns” when conducted inappropriately.

Such inappropriate conduct includes instances when consumers are subjected to unsolicited or “persistent solicitation”, said the authority.

Under the enhanced safeguards, financial institutions are expected to conduct public prospecting activities only within designated areas at commercial premises, and appoint “suitably qualified individuals” to oversee their representatives’ conduct at such events.

Representatives must clearly inform consumers at the outset that they intend to market financial products or services, and obtain consumers’ consent before proceeding with the engagement.

Street canvassing and door-to-door prospecting will also remain prohibited.

The enhanced safeguards follow a public consultation by the authority on proposals to strengthen standards of conduct in this area.

Lim Tuang Lee, assistant managing director for capital markets at MAS, said consumers should not feel “pressured or caught off guard” when approached about financial products and services.

He added that the enhanced safeguards assist in ensuring that consumers are treated “fairly and professionally”, while allowing financial institutions to continue engaging consumers through appropriate channels.

MAS will issue the updated guidelines in 2027, and financial institutions will be given a nine-month transition period to implement the enhanced safeguards thereafter.