The CPFTA now applies to financial services. Many financial advisers may be guilty of infringing on the provisions of CPFTA and may be providing misleading information to the consumers, especially in the form of verbal representations. If the consumer is able to provide evidence of the representations, they will be able to get the financial adviser to be charged for infringement of the CPFTA.
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Read the article shown above. You can share your personal experiences on how you were misled by the fianncial adviser and get a lawyer to see if you can have a case to bring the financial adviser to court for infringing the CPFTA.
Another blatant breach of CPFTA is financial-related seminars, e.g. "free" seminars purporting to teach people how to make money in stocks, options, currencies, properties etc. At the end, they're selling a course, priced astronomically high nominally, justified by the sums you're going to make by learning the "system."
ReplyDeleteThen comes the discount sales pitch, i.e. if you sign up today before you leave the room, there's a 50% discount or thereabouts. However, at every seminar they offer the same "discount."
This is blatantly in breach of Sec. 4(d) Schedule II 18.
Parliament No: 11
ReplyDeleteSession No: 1
Volume No: 85
Sitting No: 1
Sitting Date: 2008-09-15
Section Name: ORAL ANSWERS TO QUESTIONS NOT REACHED
Title: CONSUMER PROTECTION (FAIR TRADING) ACT (Inclusion of financial products and services)
MPs Speaking: Mr Lim Hng Kiang;Mr Siew Kum Hong
Column No : 161
CONSUMER PROTECTION (FAIR TRADING) ACT
(Inclusion of financial products and services)
27. Mr Siew Kum Hong asked the Minister for Trade and Industry (a) whether the Government intends to exclude any financial products and services from the Consumer Protection (Fair Trading) Act; (b) if so, how will such exclusions protect and benefit consumers; and (c) how will the new provisions governing a stay of proceedings impact consumers.
Mr Lim Hng Kiang:
The Consumer Protection (Fair Trading) Act or CPFTA was recently amended to include financial products and services. With the amendment, the CPFTA will now also protect consumers against unfair practices in transactions involving financial products and services.
However, financial institutions regulated by the Monetary Authority of Singapore (MAS) will not be subject to two specific provisions in the CPFTA that empower specified bodies (CASE and STB as stipulated in the CPFTA) to take action against errant traders. This is because MAS, as the regulator, is in a better position to enforce compliance with the law by taking formal regulatory actions against these institutions for regulatory breaches as well as require them to improve their internal compliance processes and procedures. There is therefore no need for a specified body to replicate MAS’ enforcement role. All other CPFTA provisions will apply to these financial institutions, and consumers will continue to have the right to seek civil remedies through the CPFTA.
Section 6 of the CPFTA allows the parties to a court action against a trader for an unfair practice, the option of applying to stay the proceedings when a specified body has applied to a court for a declaration or injunction relating to the same unfair practice. 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. This process will allow both parties to save on the cost and effort of consumer actions.
Parliament No: 11
ReplyDeleteSession No: 1
Volume No: 85
Sitting No: 1
Sitting Date: 2008-09-15
Section Name: ORAL ANSWERS TO QUESTIONS NOT REACHED
Title: CONSUMER PROTECTION (FAIR TRADING) ACT (Inclusion of financial products and services)
MPs Speaking: Mr Lim Hng Kiang;Mr Siew Kum Hong
Column No : 161
CONSUMER PROTECTION (FAIR TRADING) ACT
(Inclusion of financial products and services)
27. Mr Siew Kum Hong asked the Minister for Trade and Industry (a) whether the Government intends to exclude any financial products and services from the Consumer Protection (Fair Trading) Act; (b) if so, how will such exclusions protect and benefit consumers; and (c) how will the new provisions governing a stay of proceedings impact consumers.
Mr Lim Hng Kiang:
The Consumer Protection (Fair Trading) Act or CPFTA was recently amended to include financial products and services. With the amendment, the CPFTA will now also protect consumers against unfair practices in transactions involving financial products and services.
However, financial institutions regulated by the Monetary Authority of Singapore (MAS) will not be subject to two specific provisions in the CPFTA that empower specified bodies (CASE and STB as stipulated in the CPFTA) to take action against errant traders. This is because MAS, as the regulator, is in a better position to enforce compliance with the law by taking formal regulatory actions against these institutions for regulatory breaches as well as require them to improve their internal compliance processes and procedures. There is therefore no need for a specified body to replicate MAS’ enforcement role. All other CPFTA provisions will apply to these financial institutions, and consumers will continue to have the right to seek civil remedies through the CPFTA.
Section 6 of the CPFTA allows the parties to a court action against a trader for an unfair practice, the option of applying to stay the proceedings when a specified body has applied to a court for a declaration or injunction relating to the same unfair practice. 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. This process will allow both parties to save on the cost and effort of consumer actions.
Hi Friends,
ReplyDeleteConsumer protection fair trading act provides the legislative framework to allow consumers aggrieved by unfair practices to have recourse to civil remedies before the courts. Thanks a lot....
Consumer Protection Acts