Promontory: Asian Financial Firms Urged to Prioritize Consumers Amidst Tightening Regulations

Promontory Financial Group (PFG) has alerted Asian financial companies to navigate hidden regulatory pitfalls as the financial landscape tightens. The firm's experts emphasize the necessity of prioritizing consumer protection over profit margins.

According to PFG, the era of "buyer beware" in financial services is over. Recent actions by regulators in Hong Kong and Singapore against "minibond" sellers illustrate that legislators and enforcement authorities are closely monitoring corporate steps to safeguard consumers when introducing new financial products. Companies must ensure clients are purchasing suitable products, Promontory stated.

Multinational corporations seeking to expand in Asia also face concealed risks. Regulators in the U.S. and Europe are increasingly scrutinizing the actions of locally domiciled companies operating overseas, particularly concerning corruption. Firms may be held liable for past criminal activities of acquired subsidiaries, underscoring the importance of robust due diligence.

The latest edition of 'Promontory Sightlines' also covers other pertinent topics, including risk management strategies against cyber threats, new bank capital regime rules, and emerging compliance requirements for insurance companies. The publication is available on Promontory's website.