Written reply to Parliamentary Question on mandatory disclosure of commissions
Date: For Parliament Sitting on 4 October 2023
Name and Constituency of Member of Parliament
Mr Murali Pillai, MP, Bukit Batok SMC
To ask the Prime Minister whether the Monetary Authority of Singapore is minded to direct the mandatory disclosure of the quanta of commissions paid or earned by regulated financial institutions, financial advisers and introducers for the procurement of business or custom from the clients of the financial institutions and financial advisers, even in the absence of requests for the same information, to promote better transparency.
Answer by Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of MAS:
1. It is mandatory for financial institutions such as licensed financial advisers, banks and insurers who provide financial advisory services (collectively, “financial advisers”) to disclose to customers at the point of sale, the commissions and distribution costs associated with the sales of investment products and life insurance policies respectively.
2. In the case of introducers, it is also mandatory to state whether they are being remunerated by financial advisers. If asked, they must also disclose the remuneration amount. MAS is working with the Attorney-General’s Chambers to effect legislative amendments to require introducers to disclose the remuneration amount without being asked.