Introduction to MAS Advisory Letters
On September 25, 2023, the Monetary Authority of Singapore (MAS) announced that five content creators would receive advisory letters for potentially providing financial advice without the necessary licenses. This action underscores the increasing scrutiny over online financial advice amid a rapidly evolving digital landscape.
New Guidelines Effective March 2026
MAS will implement new guidelines starting March 25, 2026, aimed at enhancing the management of risks linked to digital advertising in the financial sector. These guidelines will apply broadly to financial institutions and their appointed third parties, including online content creators. The goal is to foster a culture of responsible financial content distribution.
Responsibilities of Financial Institutions and Content Creators
According to MAS’s capital markets assistant managing director, Lim Tuang Lee, financial institutions and content creators must ensure that the dissemination of financial information and the advertising of related products occur responsibly. This involves adopting appropriate safeguards to protect consumer interests while adhering to regulatory requirements.
Accountability and Oversight
Financial institutions will be held accountable for their digital advertising activities, including those conducted by digital marketers and content creators. MAS emphasized that while institutions can delegate responsibilities, ultimate accountability lies with their boards and senior management. This highlights the importance of governance in the digital advertising space.
Challenges in Digital Media
As financial institutions increasingly leverage social media for outreach, several challenges arise, including misleading advertisements and unauthorized financial promotions. MAS’s guidelines aim to address these issues by ensuring clear disclosures, monitoring practices, and maintaining close oversight over digital marketing efforts.
Monitoring and Compliance
Financial institutions are required to monitor all digital advertising activities, including those conducted by external marketers. This includes ensuring that the marketers have the right qualifications and understand the audience they are reaching. Institutions must also report unauthorized advertising activities to relevant authorities, such as the police, and take appropriate disciplinary actions against repeat offenders.
Guidance for Content Creators
To assist content creators, MAS and the Advertising Standards Authority of Singapore (ASAS) have published a guide titled “7 Must-Knows When Sharing Financial Information Online.” This guide outlines critical considerations for creators when sharing financial advice, such as understanding licensing requirements and ensuring the legitimacy of promoted entities.
Promoting Responsible Content Sharing
The guide also emphasizes the importance of considering followers’ financial interests and well-being. It advises against using tactics that induce panic or exploit the fear of missing out (FOMO). Content creators cannot dismiss potential legal liabilities by simply stating their content is “not financial advice.”
Conclusion
The introduction of these advisory letters and upcoming guidelines by MAS marks a significant step towards regulating financial content in Singapore’s digital space. Financial institutions and content creators are urged to adopt these practices to promote responsible sharing and protect consumers in an increasingly complex financial landscape.
