MAS Proposes to Remove Exclusions Exempting FIs from Complying with Financial Advertisement Regulations to Better Protect Consumers

Introduction

To ensure sufficient protection for consumers regardless of their sophistication levels, the Monetary Authority of Singapore (“MAS“) is proposing to remove the existing exclusions which currently exempt financial institutions (“FIs“) in Singapore from complying with advertising requirements for financial products and services in certain cases (the “Existing Exclusions“).

The proposed removal of the Existing Exclusions is set out in the “Consultation Paper on Proposed Revisions to Financial Advertisement Regulations: Removal of Existing Exclusions” (“Exclusions Consultation Paper“), issued by MAS on 6 May 2025. Comments must be submitted to MAS by 5 June 2025.

FIs should review the proposed removal and consider the impact of the same on their current advertising policies, practices and operations, especially in respect of the currently exempt classes of persons and/or activities.

This Update outlines the proposed removal and its implications for FIs.

Proposed Removal of Existing Exclusions

Regulations 22 to 22D of the Financial Advisers Regulations (“FAR“), and regulations 46 and 46AA to 46AD of the Securities and Futures (Licensing and Conduct of Business) Regulations (“SFLCBR“), require FIs and their representatives to ensure that advertisements for financial products and services are (among others): (i) fair and balanced; (ii) not false and misleading; (iii) clear and legible; and (iv) subject to approval by the FI’s senior management, or persons appointed by senior management to grant approval on their behalf, prior to dissemination.

In the Exclusions Consultation Paper:

1. Proposed removal: MAS seeks comments on its proposed removal of the Existing Exclusions in: (i) FAR Regulations 22(7)(a) and 22(7)(c); and (ii) SFLCBR Regulations 46(7)(b) and 46(7)(d), which currently exempt FIs from complying with these advertising requirements in respect of prescribed classes of persons or activities including:

• • Certain persons (e.g. accredited investors, institutional investors, etc); and
  • Certain activities (e.g. advising on spot foreign exchange contracts other than for the purposes of leveraged foreign exchange trading).

2. Current usage: MAS also seeks comments on how the Existing Exclusions are being used in relation to product advertising today.

If the proposed removal is implemented, the only remaining exception to the advertisement regulations in the FAR and SFLCBR would be in the case where the dissemination or publication of information is made pursuant to any requirement imposed under Singapore law or foreign law, or by a Singapore court or foreign court, or under the listing rules or requirements of an approved exchange or an overseas exchange.

The rationale behind the proposed removal is that advertisement regulations are designed to protect consumers by ensuring that financial advertisements convey accurate information in a clear, fair and balanced manner. These measures enhance readability and understanding by the consumer and facilitate more transparent and ethical advertising. These principles of fair dealing and transparency should apply to all forms of solicitation for investment products and services, regardless of the target audience. Put another way, all investors, regardless of their level of sophistication, should be given reliable and accessible information to make informed decisions. Ultimately, trust should underpin all customer communications, beginning with advertisements that convey information accurately and fairly, in a clear and legible manner. As such, the proposed removal will ensure that advertisements on any investment product would be subject to the advertisement regulations, regardless of their target audience.

Further, to ensure alignment and consistency between both product and non-product advertisements requirements:

1. Requirements: As set out in MAS’ previous “Consultation Paper on Enhancing Safeguards for Proper Conduct of Digital Prospecting and Marketing Activities” (“Digital Consultation Paper“) (for which the Consultation was held from 25 April 2023 to 30 June 2023), MAS seeks to extend the existing regulatory requirements applicable for product advertisements, to non-product advertisements as well (e.g. the requirements on approvals, clarity, legibility, etc). This would align the legal requirements for both product and non-product advertisements. For more information on the Digital Consultation Paper, please see our 15 May 2023 Legal Update titled “Proposals for Tighter Controls on Prospecting and Marketing of Financial Products in Singapore”.

2. Exclusions: As with the proposed removal of the Existing Exclusions for product advertisement requirements, similarly, no such exclusions will be provided for non-product advertisement requirements.

3. Entry into force: The proposed removal of the Existing Exclusions for product advertisements, will come into force at the same time as the legislative amendments outlined in the Digital Consultation Paper concerning non-product advertisements. 

Concluding Words

The proposed removal of the Existing Exclusions represents a welcome development in ensuring sufficient protection for all consumers who are on the receiving end of advertisements for financial products and services from FIs. It is also heartening to note that MAS is taking further steps to ensure greater alignment and consistency between the requirements for both product and non-product advertisements. These steps will ensure more transparent and ethical advertising across all classes of advertisements for all consumers.

If you have queries on the proposed removal of the Existing Exclusions and the implications for your organisation, or on any of the above matters, please reach out to our Team members set out on this page.