Singapore MAS Issues Guidelines for Digital Financial Content, Warns Influencers
The Monetary Authority of Singapore (MAS) has introduced new guidelines to enhance standards for digital financial content. Concurrently, MAS issued advisory letters to five financial influencers (also known as financial influencers), cautioning them against potentially providing unlicensed financial advisory services.
New Guidelines for Financial Institutions and Marketers
On Thursday, September 25th, MAS released a set of behavioral standards for digital advertising campaigns aimed at financial institutions and their marketers. This initiative also involves collaboration with the Advertising Standards Authority of Singapore (ASAS) to promote a set of "Seven Tips for Sharing Financial Content Online." These measures are designed to promote greater transparency and responsibility.
First-Time Advisory Letters to Financial Influencers
This marks the first instance of MAS issuing such advisory letters to financial influencers. MAS has advised these content creators to modify their content and practices to align with regulatory requirements. Individuals continuing to provide financial advice without the necessary licenses may face enforcement actions. The identity of the five content creators remains confidential, with MAS citing content confidentiality in response to queries from 《联合早报》 (Lianhe Zaobao).
MAS Emphasizes the Role and Risks of Digital Platforms
In a statement, MAS acknowledged the increasing reliance of consumers on digital platforms, including social media, for financial information. These platforms possess the potential to promote financial education and improve understanding of financial concepts. However, MAS also highlighted the risk of these platforms amplifying misleading or inappropriate content, potentially harming consumers. Content creators unfamiliar with legal requirements may unintentionally engage in regulated activities, violating regulations.
New Guidelines for Financial Institutions Effective March Next Year
The new MAS guidelines for financial institutions will take effect in March next year. They mandate greater transparency and responsibility in advertising and providing financial information on digital platforms like social media. This aims to prevent consumer deception.
Addressing Concerns About Misleading Information and Practices
The guidelines address concerns that character limits on social media platforms can lead to truncated or omitted key information regarding financial products or services, including their features, risks, and terms. This can result in consumers developing a misleading or unbalanced perception of these offerings. The regulator has also observed instances of deceptive tactics used by some financial institution representatives on social media, such as catfishing, to acquire potential customer information. These tactics can lead users to feel harassed or misled. Some representatives also published non-compliant advertisements on social media without informing their institutions.
Enhanced Governance and Oversight for Digital Advertising
These issues underscore the need for financial institutions to strengthen governance and oversight of digital advertising. MAS emphasizes that the boards and senior management of financial institutions will ultimately be held accountable for advertising content. Digital advertising content must clearly disclose product risks and avoid omitting crucial information due to character limitations. It must also present risks alongside potential benefits. For instance, if advertised returns are contingent on holding periods, this condition must be clearly stated. Past investment returns, when presented, must be accompanied by a disclaimer indicating that they are not indicative of future performance. If advertisements promoting products or services are disseminated through financial influencers, it must be clearly and prominently disclosed whether these individuals are licensed to provide regulated financial services. Financial institutions need to assess the entire video content if financial influencers add their own content in promoting financial institutions' product services.
Institutions Must Monitor and Discipline Influencers
Financial institutions are obligated to monitor collaborating financial influencers or marketing personnel to prevent misleading promotions. If misconduct is identified, institutions must take disciplinary action, such as issuing warnings or terminating partnerships.
MAS Emphasizes Responsible Financial Information Sharing
Lin Tuandi, Assistant Managing Director (Capital Markets) at MAS, stated that in today's fast-paced digital era, financial institutions and content creators must ensure that financial information is shared responsibly, complying with regulations and safeguarding consumer interests.