MAS tightens financial roadshow guidelines, representatives must get consent before sales pitches

MAS noted that when conducted inappropriately, such activities may lead to concerns about conduct when people are subjected to “unsolicited or persistent solicitation”.

In its public consultation report, MAS added that it receives consumer complaints that representatives are “not forthcoming” about their identities and intentions when engaging consumers in public places. 

“While MAS will not require financial institutions to document consumers’ verbal consent, financial institutions should have appropriate mechanisms to check that their representatives obtain such consent,” said MAS. 

It added that pre-registration for an event may constitute consent from the consumer if it was made clear that financial products or services will be marketed at the event.

In addition, MAS will require financial institutions to enact policies and procedures to determine an “appropriate amount of space needed to provide a conducive setting for marketing and distribution events” and restrict public prospecting activities to within a 5m radius of the demarcated event space.

At the same time, street canvassing and door-to-door prospecting will remain prohibited as they are “not conducive methods of customer engagement, as these activities are often unsolicited and unexpected”.

“Consumers should not feel pressured or caught off guard when approached about financial products and services,” said MAS assistant managing director of capital markets Lim Tuang Lee.

“These enhanced safeguards strengthen standards of conduct for public prospecting activities, helping to ensure that consumers are treated fairly and professionally while allowing financial institutions to continue engaging consumers through appropriate channels.”

OTHER PROPOSALS MAS DID NOT PROCEED WITH

In its report, MAS documented the other proposals it is not proceeding with and the reasons why.

This includes a proposal to give customers “adequate time” to make informed purchase decisions. MAS noted that the current free-look and cancellation periods already allow consumers to cancel their purchase without penalty if they want to reconsider.

MAS also said it will not prohibit gift offers as it acknowledged that customers are used to receiving information on gifts and promotional offers from financial institutions during marketing and distribution events.

It noted that financial institutions are currently required to ensure that details of gifts offered to customers are not displayed or promoted in a way that “inappropriately” influences their purchase decisions.

“MAS will focus on ensuring that financial institutions have appropriate governance frameworks to manage the responsible offering of such benefits.”