SERVING THE PUBLIC,

ENGAGING STAKEHOLDERS

PROTECTING CONSUMERS
FINANCIAL ADVISORY INDUSTRY REVIEW

In March 2012, MAS launched the Financial Advisory Industry Review (FAIR) with the aim of raising standards of practice in the financial advisory (FA) industry and improving efficiency in the distribution of life insurance and investment products in Singapore.

The FAIR Panel concluded its review in late 2012 and released a report in January 2013 with 28 recommendations. Following a public consultation, MAS fully accepted 19 of the recommendations, modified eight and dropped one recommendation proposed by the FAIR Panel.

The key initiatives under FAIR include:

  • Implementation of a balanced scorecard remuneration framework for FA representatives and their supervisors that rewards the provision of good quality advice;
  • Development of an online web aggregator to allow consumers to more easily compare pricing and other features of life insurance products offered by different insurers on a single platform; and
  • Allowing consumers to purchase life insurance products directly from insurers without distribution cost and advice.

MAS is currently working closely with the FA industry to implement the FAIR initiatives over the next six to 12 months.