CONTENTS
HOME
OUR WORK - Managing Risks, Sustaining Growth
A MORE CHALLENGING POLICY ENVIRONMENT
MONETARY POLICY - PROVIDING AN ANCHOR FOR PRICE STABILITY OVER THE MEDIUM-TERM
MANAGING THE CHALLENGES OF INCREASED GLOBAL FINANCIAL UNCERTAINTY
A SOUND AND PROGRESSIVE FINANCIAL CENTRE
CURRENCY
 
A SOUND AND PROGRESSIVE FINANCIAL CENTRE 28
 
Banking 28
 
Lower Paid-up Capital for Incorporated Wholesale Banks 28
 
Changes to Minimum Liquid Assets and Minimum Cash Balance Requirements (Amendments to MAS Notice 613) 29
 
Developments in Islamic Finance 29
 
Box Story 3 - Basel II Implementation in Singapore 30
 
Insurance 30
 
Enhanced Governance and Disclosure Framework for Participating Insurance Business (MAS 320) 30
 
Revision to Rules for Investment-Linked Products (MAS 307) 31
 
Follow Up on Framework for Insurance-Linked Securities 31
 
Capital Markets 31
 
A More Globalised and Sophisticated Equity Market 31
 
Size of Debt Market 32
 
Assets Under Management 32
 
Strong Treasury Market 33
 
Proposed Legislative Amendments to Securities and Futures Act and Financial Advisers Act 33
 
Amendments to the Singapore Code on Take-overs and Mergers 34
 
Box Story 4 - Guidelines on Fair Dealing -Board and Senior Management Responsibility for Delivering Fair Dealing Outcomes to Consumers 35
 
Thematic Approach to Market Conduct Supervision 35
 
Enhancing Market Discipline 36
 
Box Story 5 - Singapore: The Premier International Real Estate Financing Centre 36
 
REITS 37
 
Revised Property Fund Guidelines 37
 
Licensing Framework for REIT Managers 37
 
Extension of the Singapore Code on Take-overs and Mergers to REITs 37
 
Regulatory Oversight of Commodity Futures 38
 

Box Story 4: Guidelines On Fair Dealing
- Board And Senior Management Responsibility For
Delivering Fair Dealing Outcomes To Consumers

In February 2008, MAS released a consultation paper on proposed Guidelines on Fair Dealing - Board and Senior Management Responsibility for Delivering Fair Dealing Outcomes to Consumers (Guidelines). These proposed Guidelines are in line with one of the supervisory objectives of the MAS - the promotion of fair dealing by financial institutions (FIs) when they conduct business with consumers.

These proposed Guidelines focus on the role of the board and senior management in leading their FIs to deliver fair dealing outcomes to retail consumers. The proposed Guidelines particularly apply to financial advisory (FA) services regulated under the Financial Advisers Act (FAA), as well as after-sales services and complaints handling. Under the proposed Guidelines, FIs are expected to strive for the following outcomes:

  • Consumers have confidence that financial institutions put consumers' interests first in the conduct of their business;
  • Financial institutions offer products and services that are suitable for the consumer segments they target;
  • Financial institutions appoint competent representatives who provide consumers with advice that meet their financial objectives and suit their personal circumstances;
  • Consumers receive clear, relevant and timely information to make informed financial decisions; and
  • Financial institutions handle consumer complaints promptly and in a consistent manner.

The board and senior management of the FI are expected to review their business operations and identify how well the FI is delivering the fair dealing outcomes. Where gaps exist, they will have to develop and implement a plan to address these gaps and set clear priorities and targets for its implementation.

In addition, MAS encourages FA industry associations to actively promote fair dealing outcomes among their member firms. MAS has begun discussions with them on how best they can do so. Consumers also have an important role to play. They need to take responsibility for their financial decisions, and acquire basic financial know-how before they invest. MAS will issue consumer tips to educate consumers on what the fair dealing initiative means for them.

The consultation closed on 21 May 2008 and MAS is reviewing the feedback, including some industry suggestions on the most appropriate form and manner of presentation of the proposed fair dealing outcomes and guidelines.

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