Misrepresenting financial products
Misrepresentation - an untrue statement or omission of a fact or any statement that is otherwise false or misleading - can erode trust in the financial services industry
AS INVESTORS, we have been pitched various financial products for different needs. Have you ever been led to believe that an endowment insurance policy is in fact a savings account? Or been told by a charming salesperson that an investment-linked insurance product is no different from a unit trust?
Did the relationship manager brush off the risk associated with structured products, even though the prospectus indicated otherwise? Did your private banker imply guaranteed returns when capital loss was plausible?
The Monetary Authority of Singapore (MAS) has been investigating various types of financial services misconduct including cases of misrepresentation. In its inaugural enforcement report published in March 2019, MAS flagged that as of the 18 months ending Dec 31, 2018, there were 20 outstanding cases under review and investigation for mis-selling, which included misrepresentation and inappropriate advice.
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