Look into training of financial professionals by those who are not financially trained: Forum

The Insurance and Financial Practitioners Association of Singapore (Ifpas) welcomes the clear stance taken by the Monetary Authority of Singapore (MAS) regarding the licensing and regulation of financial influencers who provide financial advice.

This is a positive step towards protecting consumers and ensuring that only licensed and competent individuals are permitted to offer financial advice, as outlined in MAS’ response in Parliament (Financial influencers must be licensed and regulated if they provide advice: Alvin Tan, Nov 13). We agree with MAS that financial advice must be presented in a balanced and transparent manner by qualified professionals to safeguard public interest and maintain trust in the financial advisory industry. The proactive issuance of guidelines and enforcement actions further reinforces the importance of ethical and professional conduct in this space.

In addition to addressing concerns about financial influencers, Ifpas strongly encourages MAS and other regulatory authorities to look into another area of growing concern: the proliferation of non-financially trained trainers or non-licensed financial practitioners who conduct training sessions for financial professionals. These trainers often charge fees to provide sales or advisory techniques, potentially influencing how financial practitioners approach consumers. 

While training plays a vital role in the professional development of financial practitioners, it is crucial that those conducting such training are well qualified and operate under a framework that ensures ethical and professional standards. 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. We urge the authorities to consider: 

- Setting minimum standards for trainers by ensuring that trainers have recognised financial qualifications and relevant experience to train financial practitioners;

- Monitoring training content and methodology by reviewing the content of training programmes to ensure alignment with MAS’ regulatory and ethical standards for financial advice; and  

- Creating regulatory oversight for trainers by establishing a framework to regulate individuals or entities providing professional training in the financial services sector, ensuring accountability and quality. 

Ifpas remains committed to promoting professionalism, ethical practices and competence in the financial advisory industry.

We will work with MAS and other stakeholders to address these issues and uphold the trust and credibility of Singapore’s financial practitioners.

Derrick Yip
Vice-President 1 (Public Relations)
Ifpas Executive Council 2024/2025

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

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