MAS eyes enhanced safeguards for elderly and non-english proficient financial clients

Authorities aim to implement enhancements no later than H2 2025.

Singapore has floated plans for a public consultation on proposed enhanced transaction safeguards for the elderly and clients who are not proficient in English.

Responding to parliamentary queries, the Monetary Authority of Singapore (MAS) said that it aims to revise standards by Q4 2024, with implementation no later than H2 2025 after a 9-month transition period.

Changes will affect “selected clients” of financial advisers that meet specific criteria. Selected clients refer to anyone who meets two of the following criteria: (1) is 62 years of age or older; (2) is not proficient in spoken or written English); or has a below GCE “O” or “N” level certifications, or equivalent academic qualifications.

ALSO READ: MAS expands regulations for digital payment token service providers

Current safeguards for these clients include performing pre-transaction client call-backs to ensure that these clients have understood the features and risks of the products they have been sold, MAS shared.

The proposed amendments will further strengthen these safeguards by, amongst others, requiring a trusted individual to be present during the financial advisory process and audio recording the client call-back.