Private banks in Singapore have enhanced disclosure standards in the Private Banking Code of Conduct. The enhanced standards expand on the existing requirement for private banks to ensure that a client is informed of the key terms of transactions.
The moves comes in the wake of complaints by investors who lost money in recent high profile bond defaults. The Association of Banks in Singapore (ABS) has reminded private banks to disclose all fees, charges and rebates in relation to bond sales.
Private banks will provide clients with a fee schedule at account opening, which sets out fees, charges and other quantifiable benefits (including commissions, rebates and retrocessions) for all investment products and services. Private banks will also disclose any rebates received from selling new bond issuances to clients prior to each transaction.
Sustainable and Strong Wealth Management Hub
At the same time, the ABS Code of Consumer Banking Practice is also amended to include the requirement to disclose bond rebates.
Francesco de Ferrari, Credit Suisse’s Head of Private Banking Asia Pacific who currently represents the bank on the Private Banking Industry Group Executive Committee, said: «The Code of Conduct is a critical set of guidelines for the wealth management industry. As the industry, the regulatory and market environment as well as clients’ expectations continue to evolve rapidly, such progressive enhancements to improve transparency are important to ensure all players will continue to do the right things for our clients and our talent. This will enable our own individual businesses as well as the overall wealth management industry in Singapore to grow sustainably in the long run.»
DBS and Bank of Singapore
«The Private Banking Code of Conduct is an industry code that sets the benchmark of market conduct and staff competency standards for the private banking industry in Singapore. For Singapore to continue to build a sustainable and strong wealth management hub here, it is important for industry players and stakeholders to continue to evolve and enhance these standards, so this is a move in the right direction,» said Tan Su Shan, (pictured) Co-Chair of the Private Banking Industry Group and Group Head of Consumer Banking & Wealth Management, DBS Bank.
«We are continuously reviewing and strengthening our various frameworks, processes and training programmes to fully embrace the Private Banking Code of Conduct in order to raise the competency of our staff and to foster high market conduct standards,» said Marc Van de Walle, (pictured) Global Head of Products, Bank of Singapore.
