Tuesday, April 03, 2012

MAS introduces review panel for financial advisory industry

SINGAPORE: The Monetary Authority of Singapore (MAS) has formed a review panel for the recently-announced Financial Advisory Industry Review (FAIR) process.

The 13-member panel comprises representatatives from industry associations, consumer bodies, the investment community and academia.

Among the panelists are Piyush Gupta, CEO of DBS Group, Tan Hak Leh, president of the Life Insurance Association Singapore and Ong Ye Kung, deputy secretary-general of the National Trades Union Congress.



The panel will look into raising the competence of financial advisory (FA) representatives and the quality of FA firms, making FA a dedicated service, lowering investment distribution costs and promoting a culture of fair dealing, the five key thrusts outlined by MAS managing director Ravi Menon last week.

The committee will complete the review and propose its recommendations by the fourth quarter of 2012.

MAS assistant managing director for capital markets Lee Chuan Teck said: "Our vision is for financial institutions to put customers first, and for customers to have access to affordable life insurance and investments to meet their financial planning and retirement needs."

In preliminary findings from a recent so-called Mystery Shopping exercise commissioned by the central bank, up to one-third of recommendations made by FA representatives were "clearly unsuitable".

Representatives were also not upfront in disclosing fees and charges.

Some 500 mystery shoppers took part in the exercise.

During this period of review, the public is invited to submit their feedback to the MAS.

According to some panelists, the MAS could make some of the recommendations mandatory for the financial advisory industry.

View the original article here

Source From Channel News Asia

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