Published Date: 17 August 2005 Monetary Authority of Singapore
I refer to Ms Seah Geok Hong's letter, 'Climbdown by LIA' (ST, Aug 12).
2 Every financial product has features which may or may not meet a particular consumer's needs. Investment-linked insurance policies (ILPs) are no exception.
3 To enable consumers to match their needs, financial institutions (FIs) have a duty to disclose material information about their products and provide a reasonable basis for recommendations that they make. The Monetary Authority of Singapore (MAS) sets out disclosure requirements for FIs marketing or giving advice on investment products. Industry bodies also have guidelines which complement MAS' requirements.
4 Consumers will need to understand their own needs and objectives, and to understand the features of the products they buy. In that way, they can make more informed decisions on their investments.
5 To help consumers make better sense of financial products and services, MoneySense, the national financial-education programme, works with relevant partners to deliver talks and produce guides.
6 In view of the interest in ILPs, a guide is being produced by MoneySense, the Life Insurance Association and the Consumers Association of Singapore. This will be released soon.
Angelina Fernandez (Ms)
Director (Communications)
Monetary Authority of Singapore