On 24 August 2023, the Monetary Authority of Singapore (MAS) published a paper on its response to the feedback they received from their consultation paper on proposals to enhance pre and post-transaction safeguards for retail clients1.
The consultation paper was released on 22 June 2021 and outlined proposals to improve safeguards for retail clients2. This was prompted by MAS’ review of the effectiveness of the Balanced Scorecard (BSC) framework and findings from a mystery shopping exercise (MSE) to assess the standards of financial advisory (FA) representatives’ sales and advisory processes, which revealed shortcomings in the implemented of safeguards for Selected Clients (SC).
MAS defines an SC as someone who meets any two of the following criteria:
2 Enhancing Pre and Post-Transaction Safeguards for Retail Clients (MAS, 22 June 2023)