Consider tightening regulations on financial advisers

THE problem of unethical behaviour by financial advisers (FAs) surfaced in Parliament this month, when Member of Parliament Desmond Choo asked about the impact of undesirable marketing tactics for financial products – such as ambush-style marketing – on less financially-literate consumers.

Asked what recourse consumers have, Minister of State for Trade and Industry Alvin Tan replied that they could file a complaint with the financial institution, or approach financial-dispute institution FIDReC if they get an unsatisfactory response.

Such misconduct would only become more prevalent as the pool of FAs grows. Yet current measures are mostly reactive and do not guarantee that victims will be compensated. It might be time to reconsider Singapore’s regulations surrounding the role.