The Monetary Authority of Singapore (MAS) expects that all direct insurance brokers and exempt direct insurance brokers as well as their broking staff to have regard to Guidelines on Market Conduct and Service Standards so as to help foster professional standards and enhance confidence in the insurance industry.

The direct insurance brokers and exempt direct insurance brokers as well as their broking staff sated out by the Guidelines on Market Conduct and Service Standards when they deal with general insurance customers. These Guidelines meant to provide general guidance and are not intended to replace or override any legislative provisions or written directions issued under the Insurance Act (the Act) in respect of conduct requirements specifically applicable to insurance brokers.

The Guidelines on Market Conduct and Service Standards for Insurance Brokers shall apply to all direct insurance brokers and exempt direct insurance brokers as well as their broking staff.

The Guidelines on Market Conduct and Service Standards for Insurance Brokers should be read in conjunction with the provisions of the Insurance Act (the Act) as well as directions, notices, circulars and other guidelines that are issued by the Monetary Authority of Singapore (MAS) from time to time.

The Guidelines on Market Conduct and Service Standards for Insurance Brokers should be read in conjunction with the provisions of the Insurance Act (the Act) as well as directions, notices, circulars and other guidelines that are issued by the Monetary Authority of Singapore (MAS) from time to time.

In the Guidelines on Market Conduct and Service Standards for Insurance Brokers, the following statement satisfies the meaning of “broking staff” in relation to a direct insurance broker or exempt direct insurance broker:-

(a) Any employee of the direct insurance broker or the exempt direct insurance broker.
(b) Any other person who is authorized by the direct insurance broker or the exempt direct insurance broker to act on its behalf to provide technical advice to any client of the direct insurance broker or the exempt direct insurance broker in respect of insurance policies relating to general business and long-term accident and health policies, other than insurance policies relating to reinsurance business.

In the Guidelines on Market Conduct and Service Standards for Insurance Brokers, the following statement satisfies the meaning of “general insurance customer”:-

(a) An individual who enters or proposes to enter into a contract of insurance which is wholly or exclusively for the individual’s private or domestic use.
(b) A sole-proprietor.

The General Insurance Association of Singapore (GIAS) and the Singapore Insurance Brokers’ Association have jointly developed the Singapore General Insurance Code of Practice. The objective of the code is to ensure that the general insurance customer is treated fairly and receives a high standard of service.

The General Insurance Association of Singapore (GIAS) and the Singapore Insurance Brokers’ Association have jointly developed the Singapore General Insurance Code of Practice. The objective of the code is to ensure that the general insurance customer is treated fairly and receives a high standard of service.

The General Insurance Association of Singapore (GIAS) and the Singapore Insurance Brokers’ Association have jointly developed the Singapore General Insurance Code of Practice. The objective of the code is to ensure that the general insurance customer is treated fairly and receives a high standard of service.

The Monetary Authority of Singapore (MAS) has issued the Guidelines on Standards of Conduct for Marketing and Distribution Activities (the Guidelines) to emphasize expectations for financial institutions and their representatives to conduct their marketing and distribution activities at retailers and public places in a responsible and professional manner. The Guidelines apply to all financial institutions which conduct marketing and distribution activities that target retail customers and the representatives who act on behalf of these financial institutions.

The Monetary Authority of Singapore (MAS) has issued the Guidelines on Standards of Conduct for Marketing and Distribution Activities (the Guidelines) to emphasize expectations for financial institutions and their representatives to conduct their marketing and distribution activities at retailers and public places in a responsible and professional manner. The Guidelines apply to all financial institutions which conduct marketing and distribution activities that target retail customers and the representatives who act on behalf of these financial institutions.

Nowadays the financial institutions have various marketing and distribution arrangements such as roadshows and tie-ups with retailers to market their products and services to customers. These arrangements increase the reach of financial institutions to members of the public and if not properly managed, may give rise to the following issues:-

(a) Harassment of customers.
(b) Unconducive environment for the purchase of financial products.
(c) Confusion over the identities and roles of the financial institution and its representatives.
(d) Enticement of customers to purchase unsuitable products.
(e) Mishandling of cash and cheques collected.

Nowadays the financial institutions have various marketing and distribution arrangements such as roadshows and tie-ups with retailers to market their products and services to customers. These arrangements increase the reach of financial institutions to members of the public and if not properly managed, may give rise to the following issues:-

(a) Harassment of customers.
(b) Unconducive environment for the purchase of financial products.
(c) Confusion over the identities and roles of the financial institution and its representatives.
(d) Enticement of customers to purchase unsuitable products.
(e) Mishandling of cash and cheques collected.

The Monetary Authority of Singapore (MAS) expects the Board and senior management of financial institutions to set the right tone in conducting marketing and distribution activities to customers in a responsible and professional manner. MAS will also hold the Board and senior management accountable for ensuring that their financial institution’s business conduct practices are in line with the objectives of the Guidelines.

The Monetary Authority of Singapore (MAS) expects the Board and senior management of financial institutions to set the right tone in conducting marketing and distribution activities to customers in a responsible and professional manner. MAS will also hold the Board and senior management accountable for ensuring that their financial institution’s business conduct practices are in line with the objectives of the Guidelines.

Marketing and distribution activities at retailers and public places increase the reach of financial institutions to members of the public. If such activities are not properly managed they could lead to heightened market conduct risks to customers. To mitigate these risks, financial institutions should maintain adequate oversight of their marketing and distribution arrangements at these places to ensure that their representatives engage in proper marketing, sales and advisory practices.

Financial institutions should conduct call-backs or surveys for all customers prospected at retailers and public places before or within the free-look or cooling-off period to ensure that customers have understood their purchases closed at such locations.

Financial institutions should conduct regular mystery shopping and site visits to monitor and ensure that the marketing, sales and advisory practices of representatives at retailers and public places are conducted in line with their internal standards and procedures as well as the Guidelines on Standards of Conduct for Marketing and Distribution Activities. Financial institutions are not required to implement this safeguard for the sale of banking and general insurance products and services, where the banking or general insurance product or service purchased is related to the product or service that the customer has bought.

Financial institutions should separately track and monitor complaints arising from their marketing, sales and advisory activities at retailers and public places. Complaints statistics should also be reported to senior management on a regular basis.

Financial institutions should maintain a register containing information on their marketing and distribution arrangements at retailers and public places. The register should keep a record of:-

(a) The locations of the financial institution’s marketing and distribution arrangements or events.
(b) The period and duration of the arrangements or events.
(c) The identities of representatives and supervisors involved.
(d) The financial products or services marketed or distributed.

Financial institutions should maintain a register containing information on their marketing and distribution arrangements at retailers and public places. The register should keep a record of:-

(a) The locations of the financial institution’s marketing and distribution arrangements or events.
(b) The period and duration of the arrangements or events.
(c) The identities of representatives and supervisors involved.
(d) The financial products or services marketed or distributed.

Financial institutions and their representatives should conduct themselves in a professional manner at all times when prospecting for and dealing with customers at retailers and public places. They must not cause annoyance by being unreasonably persistent or by placing undue pressure on members of the public to purchase any financial product or service.

Financial institutions should ensure that their representatives clearly disclose upfront their identities and the financial institution they represent when they prospect for customers. Where financial institutions market third-party products or services, they should ensure that their representatives disclose and explain to customers the relationship between the financial institution and the third-party product provider. Where there are tie-ups with retailers, financial institutions should ensure that their representatives clearly disclose to customers the tie-up between the financial institution and the retailer, and explain each party’s roles and responsibilities.

Financial institutions should ensure that their representatives undergo training on proper sales and advisory conduct for their marketing and distribution activities at retailers and public places.

Financial institutions should ensure that their representatives who conduct marketing and distribution activities at retailers and public places have a good compliance record. The financial institution should assess a representative’s compliance record by considering a combination of factors, including but not limited to the following:-

(a) The representative’s balanced scorecard grade.
(b) Any complaint(s) filed against the representative previously.
(c) Any disciplinary action(s) taken against the representative previously.
(d) Any other relevant information gathered from the financial institution’s due diligence conducted on the representative.

Financial institutions should ensure that their representatives who conduct marketing and distribution activities at retailers and public places have a good compliance record. The financial institution should assess a representative’s compliance record by considering a combination of factors, including but not limited to the following:-

(a) The representative’s balanced scorecard grade.
(b) Any complaint(s) filed against the representative previously.
(c) Any disciplinary action(s) taken against the representative previously.
(d) Any other relevant information gathered from the financial institution’s due diligence conducted on the representative.

Financial institutions should ensure that the remuneration and incentives paid to their representatives do not lead to aggressive sales tactics and other inappropriate conduct.

In the Guidelines on Standards of Conduct for Marketing and Distribution Activities, the conduct of representatives may be influenced by commissions, incentives and other rewards that are often tied to their sales performance. They may resort to aggressive and inappropriate sales tactics, such as product pushing and misrepresentation, in order to meet sales targets. This may result in significant financial detriment to customers.

Financial institutions should ensure that any gift offered to customers does not unduly influence the decisions of customers to purchase any financial product or service. Financial institutions should also ensure that the details of gifts are not displayed or promoted in such a manner as to inappropriately influence the purchase decisions of customers.