The Monetary Authority of Singapore (MAS) has unveiled new measures aimed at strengthening the responsible sharing of financial content and advertising online.
The Guidelines on Standards of Conduct for Digital Advertising Activities set out expectations for financial institutions to uphold responsible and professional digital advertising practices and are supported by a companion guide for online content creators.
The guidelines come as the regulator recognised financial institutions are increasingly using social media for advertising, which offer greater reach but also potential risks if not properly managed.
For example, social media platforms often impose word or character limits, which can lead financial advertisements to omit or truncate important information on features, risks and terms. This potentially gives customers a misleading or unbalanced view of products and services.
MAS has also noted cases where financial institution representatives used deceptive tactics, such as catfishing, on social media, which can cause users to feel misled or harassed.
In addition, MAS has observed cases where representatives shared non-compliant social media ads without their institution’s knowledge, making it difficult for firms to investigate or address complaints.
Therefore, the guidelines set out clear expectations for financial institutions to conduct digital advertising responsibly and professionally.
They emphasise the role of the board and senior management in setting the right tone and ensuring strong governance over all digital marketing activities, including those carried out by external digital marketers.
Institutions are expected to implement comprehensive policies, procedures, systems and processes to manage digital advertising effectively. The guidelines state that they should carefully select appropriate digital media, considering market conduct and reputational risks and assess the characteristics and limitations of each platform.
Importantly, the guidelines require that all disclosures are clear, meaningful, and prominently presented to ensure customers receive a complete and balanced view of financial products and services.