Parliamentary Replies
Published Date: 02 April 2024

Written reply to Parliamentary Question on enhanced pre- and post-transaction safeguards to be undertaken by financial advisers for Selected Clients

Date: For Parliament Sitting on 2 April 2024

Name and Constituency of Member of Parliament

Mr Chua Kheng Wee Louis, MP, Sengkang GRC

Question:

To ask the Prime Minister when will the enhanced pre- and post-transaction safeguards to be undertaken by financial advisers for Selected Clients be implemented.

Answer by Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of MAS:

1. MAS will publicly consult, by the middle of this year, on legislative amendments to enhance pre- and post-transaction safeguards for clients of financial advisers meeting specified criteria“Selected Client” is one meeting any two of the following criteria: (a) Is 62 years of age or older; (b) Is not proficient in spoken or written English; (c) Has below GCE “O” or “N” level certifications, or equivalent academic qualifications.. We aim to issue the revised standards by Q4 2024, for implementation by the industry no later than 2H 2025, after a 9-month transition period.

2. There are existing safeguards for such clients that have already been implemented by the financial advisory industry. These include performing pre-transaction client call-backs to ensure that these clients have understood the features and risks of the products they have been sold. The proposed amendments will further strengthen these safeguards by, among others, requiring a trusted individual to be present during the financial advisory process and audio recording the client call-back.       

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