Every week, on my commute to and from work, I regularly encounter three main types of groups: professional fundraisers soliciting donations, real estate agents promoting a nearby condo launch, and financial roadshows promoting credit cards or insurance policies. My instinct is often to ignore them and avoid their sales pitch, but I wonder whether I’m missing out by not stopping to listen.
After all, especially at financial roadshows, there are often incentives for signing up for certain products. At insurance roadshows, many are genuine agents looking to help individuals and families get sufficient long-term protection, especially if there’s an unseen shortfall in their current policy coverage.
Why Insurers And Financial Institutions Conduct Roadshows
The simple answer is that these roadshows work. Unlike groceries or clothing, which you buy as soon as you need them, you often need to be “sold” insurance policies, investment products, and credit cards. Many people never think about insurance coverage after major life events such as getting married, having children, or buying a home.
Financial institutions know this. By setting up roadshows in shopping mall atriums, MRT stations and other high-traffic locations, they can reach a broad audience of consumers who may not otherwise seek financial advice. Many teams of insurance agents hold roadshows in shopping malls almost monthly. For example, one team held roadshows at i12 Katong, PLQ Mall, and The Woodleigh Mall in the past year.
For insurers, the immediate objective is often not to close a sale on the spot. Instead, the goal may be to start a conversation, identify potential needs, and get permission to follow up later. A family walking through a shopping mall on a weekend could represent an ideal prospect for life, health or education insurance planning. Likewise, a working adult may be a suitable candidate for credit cards, investment products or retirement planning solutions.
From the financial institution’s perspective, the economics can make sense. Renting a booth for a few days may generate dozens of leads that can subsequently be converted into customers over the coming weeks and months.
This explains why roadshows are typically held at busy venues like shopping malls and MRT stations. The more footfall, the greater the chance of engaging someone who may eventually become a customer.
Yet stories of persistent sales tactics, unclear disclosures, and consumers feeling pressured into providing personal information have contributed to the negative reputation some roadshows have today. While most representatives conduct themselves professionally, general feedback is that prospecting in public places can create risks if not properly managed.
MAS Has Strengthened Safeguards For Public Prospecting Activities
In October, the Monetary Authority of Singapore (MAS) announced enhanced safeguards for public prospecting activities after reviewing industry feedback from a consultation exercise that began in 2023. MAS noted that roadshows and other public prospecting activities provide legitimate opportunities for financial institutions to engage consumers, but can also raise conduct concerns when consumers face unsolicited or persistent solicitation.
Importantly, MAS is not banning financial roadshows. Instead, they aim to improve standards of conduct and ensure consumers are treated fairly, while still allowing financial institutions to market their products through appropriate channels.
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Representatives Must Be Upfront About Their Intentions
One of MAS’ key expectations is that representatives clearly inform consumers at the outset that they intend to market financial products or services and obtain the consumer’s consent before proceeding. No one should feel they were drawn into a conversation without realising it was fundamentally a sales pitch.
While MAS will not require financial institutions to document the consumer’s verbal consent, they should still use appropriate methods to ensure representatives do so, which brings us to the next point.
Financial Institutions Must Exercise Greater Oversight
MAS also expects financial institutions to appoint suitably qualified individuals to oversee representatives’ conduct at these events. These individuals, designated as Public Prospecting Management Officers (PPMO), should be senior enough and have a good compliance track record themselves.
Financial institutions are also expected to ensure PPMOs receive training and guidance to perform their roles effectively. PPMOs do not need to be employees of the financial institution, and can be external service providers. MAS recognises that the appointment of agency leaders as PPMOs is a common industry practice in the financial advisory sector.
The intention is to ensure better supervision and accountability, reducing the risk of inappropriate conduct by individual representatives on the ground.
To Stop Or Not To Stop
If you are completely uninterested in the product being promoted, there is little reason to stop simply out of curiosity. After all, your time has value too.
However, dismissing every financial roadshow outright may mean missing an opportunity to discover useful products, promotions or even gaps in your current financial planning. For example, a discussion with an insurance representative could highlight areas where your protection coverage is inadequate. Similarly, a credit card roadshow may offer sign-up incentives that are genuinely valuable if the card suits your spending habits.
You should feel comfortable asking questions, declining to provide personal information if you are not ready, and walking away if the conversation does not interest you. Under MAS’ enhanced safeguards, representatives are expected to be transparent about their intentions and obtain your consent before proceeding with a sales engagement.
Financial Roadshows Are Here To Stay, But With Guidelines Enforceable By Law
Financial roadshows are ultimately a customer acquisition channel. Insurers and financial institutions conduct them because they provide access to large numbers of potential customers in locations such as shopping malls and other high-traffic commercial venues.
While some consumers may find these encounters inconvenient, MAS recognises that public prospecting activities serve a legitimate business purpose and is not seeking to prohibit them. Instead, they are tightening standards to ensure consumers are treated fairly, informed of the representative’s intentions, and protected from overly aggressive solicitation.
MAS will issue the updated Guidelines on Standards of Conduct for Marketing and Distribution Activities in 2027, after which financial institutions will be given a nine-month transition period to implement the enhanced safeguards.
So the next time someone approaches you at a financial roadshow, you don’t necessarily need to look at your phone and pretend not to notice them. Just remember that listening is optional, buying is definitely optional, and under Singapore’s evolving regulatory framework, financial institutions are increasingly expected to respect that distinction.
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