MAS REVIEWING CASE
He also responded to two questions on protecting retail investors and encouraging financial companies to be responsible when marketing their products.
He referred to a "recent incident" involving an investment platform that offered instant withdrawals up to a certain amount and allowed customers to spend on a debit card that was linked to their investments.
Chocolate Finance previously offered instant withdrawals of up to S$20,000 (US$15,000) per day and launched a debit card in February this year. Transactions on the debit card were also paused last month before resuming with a S$250 limit per transaction.
The conditions and limitations were disclosed in the product terms and conditions but may not have been effective in giving customers a full understanding, said Mr Tan.
Product features do not necessarily require regulatory approval, but there are requirements for robust risk management and clear disclosures, he said.
"MAS is reviewing this particular case against these requirements, as well as more generally how to ensure investment platforms implement these requirements effectively," he said.
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