New guidelines to keep misleading online financial content in check

MAS moves to ensure firms and their digital marketers conduct advertising responsibly

- Chor Khieng Yuit Senior Business Correspondent

Financial institutions sharing financial content online will have to ensure it is not misleading or inappropriate, under guidelines released by the Monetary Authority of Singapore on Sept 25.

The guidelines set out MAS' expectations for financial institutions (FIs) and their digital marketers to conduct digital advertising activities in a responsible and professional manner.

They include five safeguards that FIs should adopt to manage the risks associated with their digital advertising activities, such as social media platforms' constraints on word count that may result in the omission of key information such as product risks.

The recommended measures take effect from March 25, 2026, for FIs, which include banks, insurers and capital market services providers such as fund management companies and brokerages.

Mr Chan Wai Kit, executive director of the Life Insurance Association (LIA) Singapore, said this is a timely and important step as the industry collectively seeks to foster greater trust and transparency in Singapore's digital financial landscape.

"The guidelines provide a clear framework that aligns with and reinforces the industry's commitment to ensuring higher standards of professionalism and ethical conduct in digital advertising activities," he said.

MAS first consulted the industry in April 2023 on its intention to enhance the safeguards for online financial content. Since the consultation, the use of digital media has continued to grow.

"Digital platforms, including social media, have increasingly become sources of financial information for consumers," the regulator said in a statement.

It noted that these platforms have a broad reach and are able to connect with the retail public to facilitate financial education and enhance understanding of financial concepts.