MAS introduces enhanced safeguards around public events by financial institutions

The Monetary Authority of Singapore (MAS) has announced stricter guidelines for public prospecting activities by financial institutions. This move comes as roadshows, where financial institutions engage consumers in public spaces to market their products, can sometimes raise concerns when conducted improperly. Inappropriate conduct includes unsolicited or persistent solicitation, according to the authority.

Under these new safeguards, financial institutions will only be allowed to conduct public prospecting activities within designated areas at commercial premises. They will also need to appoint "suitably qualified individuals" to oversee the behavior of their representatives during these events. Representatives must clearly inform consumers at the beginning of the interaction that they intend to market financial products or services, and obtain explicit consent before proceeding.

Previously prohibited methods, such as street canvassing and door-to-door prospecting, will remain off-limits. The enhanced safeguards were a result of a public consultation by MAS on proposals to strengthen conduct standards in this area. Lim Tuang Lee, Assistant Managing Director for Capital Markets at MAS, emphasized that consumers should not feel pressured or caught off guard when approached about financial products.

The aim is to ensure that consumers are treated fairly and professionally, while still allowing financial institutions to engage with consumers through appropriate channels.

MAS plans to publish the updated guidelines in 2027, providing financial institutions with a nine-month transition period to implement the enhanced safeguards.