Monetary Authority of Singapore Annual Report 2010/2011
Our Work

Achieving Fair Dealing Outcomes

Following the issuance of the Guidelines on Fair Dealing - Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers (Fair Dealing Guidelines) in April 2009, MAS surveyed selected financial institutions, including banks, insurers, capital markets services licensees and licensed financial advisers, during the first quarter of 2010. The survey focused on whether the Board and senior management have taken active steps to align business practices with the fair dealing outcomes.

MAS noted from the survey responses that most financial institutions have taken positive steps to embed the recommendations in the Fair Dealing Guidelines into their business practices and to create greater awareness of the Guidelines amongst their staff. However, the survey also revealed the need for greater involvement and leadership by the Board and senior management in leading their organisations' fair dealing initiatives. MAS would also like to see more financial institutions incorporating key performance indicators for achieving fair dealing outcomes in the remuneration of their representatives and senior executives. This is an important way to align the interests of financial institutions with that of their customers and to incentivise the sales staff and senior executives to deliver fair dealing outcomes. MAS wrote to all financial institutions providing financial advisory services in December 2010 to share our broad findings from the survey.

MAS will continue to actively engage financial institutions through various channels such as dialogues, company visits and inspections to assess their progress in embedding fair dealing in their day-to-day dealings with customers.