28 april 2021 Peiying Chua Heikes Financial Regulation

MAS focuses on good practices for the financial advisory industry disciplinary action framework

On 26 March 2021, the Monetary Authority of Singapore (“MAS”) released an information paper on good practices relating to disciplinary action framework in the financial advisory industry (the “Paper”). 

Key takeaways:
  • The Life Insurance Association worked closely with the MAS in producing the Paper, which consists of a thematic review of DA frameworks of FAs (including banks, insurers, insurance brokers and licensed FAs). 
  • The Paper aims to: 
    • provide guidance on sound principles in key areas of financial advisers’ (“FAs”) disciplinary action (“DA”) framework, so as to achieve more consistent outcomes in FA’s application of DA;
    • and raise standards through the sharing of good practices.
  • Apart from FAs serving retail customers (whom the Paper is meant to apply to), other financial services players are encouraged to have regard to and adapt the best practices in the Paper as appropriate for their circumstances and businesses.