MAS Issues Information Paper on Good Practices for Financial Advisers
Singapore, 17 Nov 2004...The Monetary Authority of Singapore (MAS) issued an Information Paper on Good Practices for Licensed and Exempt Financial Advisers. The paper aims to assist financial advisers (FAs) enhance their advisory and sales process, complaints handling, compliance function and competency level of their representatives.
2 In the course of supervising FAs, MAS has observed some good practices among some FAs and has highlighted these in the paper. Some of the good practices highlighted include the controls and safeguards put in place by some FAs when providing financial advisory services to customers with limited knowledge of investment products, and at seminars and promotional events to avoid consumers being pressured into making hasty investment decisions.
3 The paper recommends that FAs adopt a remuneration structure for representatives that rewards the building of longer-term relationships with clients, the provision of good advice and compliance with regulatory requirements. In addition, the paper highlights the importance of FAs having a robust compliance function. FAs should continually review and improve their processes and procedures to enable them to meet high standards of business conduct. This will enhance consumer confidence in the financial advisory industry.
4 The paper (261 KB) & and MAS' response to the feedback received from the public consultation are available on the MAS website at www.mas.gov.sg