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SINGAPORE: Financial institutions regulated by the Monetary Authority of Singapore (MAS) will be exempted from some provisions in the Consumer Protection (Fair Trading) Act.
They are those which already empower the Consumers' Association of Singapore (CASE) and the Singapore Tourism Board (STB) to take action against errant traders.
Trade and Industry Minister Lim Hng Kiang said this is because as the regulator, MAS is in a better position to enforce compliance with the law by taking formal regulatory actions against these institutions for regulatory breaches.
MAS could also require them to improve their internal compliance processes and procedures.
However, all other provisions under the Consumer Protection (Fair Trading) Act will apply to the financial institutions, and consumers will continue to have the right to seek civil remedies through the Act.
Mr Lim was replying to a Parliamentary question from Nominated MP Siew Kum Hong, who had wanted to know if financial products and services would be excluded and how such exclusions would protect or benefit consumers.
The Consumer Protection (Fair Trading) Act was recently amended to include financial product and services, which means consumers will also be protected against unfair practices in transactions involving these products and services.
Under the Act, the parties to a court action against a trader for an unfair practice have the option of applying to stay the proceedings when a specified body like CASE or STB has applied to a court for a declaration or injunction relating to the same unfair practice.
Mr Lim explained: "Consumers benefit from this provision as it allows them to rely on the outcome of the specified body's action.
"For example, if the court agrees with the specified body that the trader had engaged in an unfair practice, the consumer need not re-argue in court the issue of whether the practice was unfair.
"The result of the specified body's action may even prompt the trader to settle with the consumer. The process could allow both parties to save on the cost and effort of consumer actions."
- CNA/yb
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