Debated in Parliament on 7 May 2024.
Ms Nadia Ahmad Samdin asked the Prime Minister (a) what measures are in place to regulate financial advisers who advertise on estate planning and investment services in the heartlands, especially those targeting seniors; and (b) whether there are guidelines for such individuals to display their appropriate licences.
Financial advisory firms are regulated under the Financial Advisers Act (FAA) for the provision of financial advisory services on investment products. Estate planning services like will writing, which have no element of financial advice, are not regulated under the FAA. Firms and their representatives providing financial advice that forms part of estate planning are required to comply with the FAA.
There are standards that govern how financial advisory firms and their representatives conduct prospecting and advertising activities. To ensure that customers know that they are dealing with licensed individuals, the Monetary Authority of Singapore (MAS) expects financial advisory representatives to disclose their identities when prospecting for customers in public places. Additionally, when making recommendations to seniors who are not proficient in English or who do not have at least GCE "O" level qualifications, MAS requires financial advisory firms to implement additional safeguards. For example, firms must either perform call-backs or in-person checks to confirm that clients have understood the features and risks of the product before the transaction can be executed.
MAS also requires financial advisory firms to ensure that advertisements on financial advisory services, including those used by their representatives, are not false or misleading. MAS concluded a public consultation in June 2023 to require such advertisements to be approved by the firm's senior management or their appointed persons. MAS is carefully reviewing the feedback received and aims to publish our response to the consultation feedback by the first half of 2025.
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