A breakdown on financial services misconduct by types of offences shows that 53% of the cases are a result of mis-selling, according to the Monetary Authority of Singapore (MAS)'s inaugural Enforcement Report (July 2017 to December 2018).
The Enforcement Report outlines MAS’ enforcement priorities and provides greater accountability and transparency into the actions taken against breaches of MAS’ rules and regulations. The report will be published every 18 months.
To better protect consumers and safeguard public trust in our financial institutions, MAS will focus its enforcement efforts to strengthen:
- Timely and adequate disclosure of corporate information by listed companies;
- Business conduct of financial advisers and their representatives;
- Financial institutions’ compliance with Anti-Money Laundering/Combatting the Financing of Terrorism requirements;
- Brokerage houses’ internal controls to detect and deter market abuse; and
- Surveillance and investigations into suspected insider trading
Ms Gillian Tan, Executive Director (Enforcement), MAS said, “As Singapore’s financial industry grows in size and complexity, so will the risks of financial misconduct. Enforcement plays a critical role in financial supervision through the detection, investigation and punishment of serious misconduct. This is intended to deter illegal and unethical behaviour and protect consumers. Building on last year’s Enforcement Monograph, the Enforcement Report provides detailed insights into MAS’ enforcement work and priorities, and provides the public and financial sector with a comprehensive picture of our ongoing efforts to preserve the integrity of Singapore’s financial markets.”
Financial Services Misconduct
The breakdown on Financial Services Misconduct shows:
- 53% Mis-selling – cases involving suspected mis-representation of financial products during sales or inappropriate advice & recommendation of financial products
- 29% Conduct of business – cases involving suspected breaches or circumvention of business conduct rules when carrying out financial service activities
- 18% Fitness and propriety – cases involving suspected dishonest, incompetent or unfit individuals
In two featured cases of mis-selling by Financial Advisory Representatives:
Former insurance agent Heng Goid Hoon (Heng) was found to have recommended switching investment-linked insurance policies (ILP) even though this was to the customer’s detriment and for failure to disclose switching costs to the customer.
Heng was issued with a 4-year Prohibition Order – banned from providing financial advisory services and from taking part in management, acting as a director or becoming a substantial shareholder of any financial advisory firm.
Former insurance agent Koh Mei Ling (Koh) was found to have recommended an insurance product to the customer without reasonable basis and Koh also made a false declaration to the insurer.
Koh was issued with a 3-year Prohibition Order.
Visit here for more information on the Enforcement Report.
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