MAS in Singapore initiates consultation process to implement FAIR recommendations in wealth management

On 5 March, the Singapore Monetary Authority announced a consultation paper to implement a series of wealth management related reforms.

Firms have until 4 June to make the submission.

The full consultation paper is here.

The FAIR panel announced that it sought change in relation to five topics or 'thrusts':

(a) Raising the competence of FA [Financial Advisory] representatives;

(b) Raising the quality of FA firms;

(c) Making financial advising a dedicated service;

(d) Lowering distribution costs; and

(e) Promoting a culture of fair dealing.

There are some very important issues raised in the consultation and major employers in this sector will want to review carefully the recommendations as they could be costly and we have some concerns over how these reforms will affect mid sized financial advisors and their ability to cost effectively compete with banks.