Extend regulation to trainers of financial practitioners in Singapore, urges industry body

Those who train financial practitioners in Singapore should have minimum professional qualifications and be regulated, said an industry body.

The Insurance and Financial Practitioners Association of Singapore (Ifpas) on Nov 26 said in a statement that there has been a rise in the number of individuals providing such training when they themselves are not financially trained or are unlicensed financial practitioners.

These trainers often charge fees when dishing out sales or advisory techniques and can influence how financial practitioners approach consumers, it added.

Trainers should have recognised financial qualifications and relevant experience to conduct training for financial practitioners, Ifpas said, adding that the Monetary Authority of Singapore (MAS) should monitor the training content and methodology of the trainers to ensure their lessons are aligned with regulatory and ethical standards.

To ensure accountability and quality of training, MAS should also set up a framework to regulate individuals or entities providing professional training in the financial services sector, Ifpas proposed. “Unregulated trainers, particularly those lacking relevant financial qualifications or experience, may inadvertently propagate practices that are inconsistent with MAS’ guidelines and expectations for the financial advisory profession,” Ifpas said.

The Ifpas statement comes almost two weeks after MAS board member Alvin Tan said in Parliament that financial influencers who provide financial advice must be licensed and regulated under the Financial Advisers Act.

Also known as “finfluencers”, these influencers, who are growing in popularity, share tips and insights on finance-related topics like investing and budgeting via social media.

On Nov 13, Mr Tan said financial institutions hiring finfluencers to advertise their products or services have to ensure that these individuals present information in a clear and balanced way that highlights features and risks.

MAS has made it clear that any individual who is paid for making a recommendation or expressing an opinion on the buying, selling or holding of investment products will be considered as providing financial advice.

Source: Straits Times © SPH Media Limited. Permission required for reproduction.

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