MAS cracks down on influencers promoting financial products

Seemingly educational content or advice can cross into regulated territory.

Singapore is stepping up oversight of social media influencers and banks marketing financial products, signalling that online promotion without proper licensing can carry serious consequences.

The Monetary Authority of Singapore (MAS) recently issued guidance and sent advisory letters to people it said, “may have provided financial advice without a licence,” which shows that digital content creators are now squarely within regulatory reach.

“Content creators who are unfamiliar with legal requirements may inadvertently be conducting a regulated activity without the appropriate licence, which may result in consumer harm,” Singapore’s central bank told Asian Banking & Finance in an emailed reply to questions.

The guidance clarifies that even seemingly educational content or advice targeted to niche audiences can cross into regulated territory if it promotes products or facilitates transactions.

MAS can also reach non-Singaporean content creators producing material for local audiences, ensuring awareness and compliance with the city-state’s financial laws.

Financial institutions are facing parallel pressures. Banks should closely oversee partners, including influencers, using contracts and compliance checks. Failing to do so could make them liable for misleading promotions or breaking regulations.

Lawyers at Bird & Bird ATMD LLP said Singapore’s actions reflect the growing importance of responsible digital marketing in financial services.

“Financial institutions partnering with third parties—including influencers—must extend oversight, including contractual clauses for compliance and audit rights,” the law firm said on its website.

Even “educational” content may cross into regulated territory if tailored or promotional, Bird & Bird Counsel Kenneth Lo and Associate Jia Yi Chan said in a posting in September.  “Risks include reputational damage from rogue ads and liability for third-party misconduct.”

MAS said consumers should fully understand financial products before investing and seek professional advice when unsure. The regulator pointed to its MoneySense website as a resource for informed decision-making.