Monetary Authority of Singapore's Regulatory Oversight of Central Depository and its Obligations towards Individual Customers

7 Dr Tan Wu Meng asked the Prime Minister (a) what is the extent of MAS’ regulatory oversight of the Central Depository Pte Ltd (CDP) and its relationships and obligations towards individual customers; (b) what avenues for assistance are available for CDP customers who are not digitally literate or savvy, including persons whose accounts have been suspended; and (c) whether MAS considers these avenues adequate in light of some CDP customers being of elderly age and not digitally literate.

The Minister of State for Trade and Industry (Mr Alvin Tan) (for the Prime Minister): Mr Speaker, Sir, the Central Depository Pte Ltd (CDP) is licensed by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act 2001 (SFA), as an Approved Clearing House and a Central Depository System to provide securities clearing, settlement and depository services.

MAS expects all MAS-licensed financial institutions to treat their customers fairly, including availing effective support and feedback channels.

At least 99% of all CDP's customers access its services digitally or over calls. Since September 2022, less digitally-savvy customers can access self-help booths at CDP's SGX Vista premises to submit physical documents or seek in-person assistance. They also have the option to book an in-person appointment with CDP via its customer hotline. CDP service representatives also take additional care by offering priority assistance or in-person meetings to customers who have previously indicated difficulties accessing its digital services.

MAS expects CDP to address feedback about the adequacy of its non-digital customer support and closely monitor the performance of its customer service.

Mr Speaker: Dr Tan.

Dr Tan Wu Meng (Jurong): I thank the Minister of State for his answer. I have got two supplementary questions on behalf of my Clementi residents. Firstly, when MAS sets the service standards for the CDP, are these service standards also benchmarked against what a retail bank might provide to its customers?

We have Clementi residents, such as those from Faber Hills in Clementi, who are elderly and prefer face-to-face interactions and are still quite worried about access to counter service when transacting with the CDP. So, the first question is, whether the standard of service prescribed is different compared to a retail bank which, like CDP, would have many legacy customers who are older and not so digitally-savvy?

My second question, pertains to whether or not the customers who are sent digital notices to provide information to keep their accounts open – do these customers also receive telephone calls or paper, physical letters if they do not respond?

I ask this because I have a Clementi resident, a retired stockbroker, his CDP trading account was suspended because he did not use the online system to update his particulars. My resident says he is not computer literate, does not own a personal computer. So, can the Minister of State confirm whether CDP's practices include telephone and paper physical letter outreach before someone's trading account is suspended, due to potential implications if they need to access that account urgently at a future date?

Mr Alvin Tan: Sir, I thank Dr Tan Wu Meng for his supplementary questions. Dr Tan Wu Meng has been speaking very passionately about CDP and he has raised many of these discrete cases with me, such as the ones on CDP account openings and suspensions, as well as access to CDP digital services. Both Dr Tan and I have been working on these cases on behalf of his Clementi residents.

On the specific case in point, from what I understand, the particular senior had provided an email address and therefore CDP had reminded the senior to update his particulars; and there was prior warning before account suspension. We have been dealing with that case and the senior's customer account has been restored. So, that is for that.

On his first point, I had mentioned in my earlier reply that MAS expects all MAS-licensed financial institutions to treat customers fairly – including all of the effective support and feedback channels. That includes CDP.

I also want to commend the Member on many of his suggestions over the years. Just to update him on a few aspects, in which there have been enhancements to CDP as a result of MAS engagements with CDP to avail more in-person channels to those that are less digitally-literate.

One point to note is that at least 99% of all CDP customers access its services digitally or over calls. So, that means that a vast majority are digitally-savvy. But as the Member knows, the Government's position is that we are not going to be digital-only but, we want to adopt a digital-first approach. Therefore, CDP has made a couple of different enhancements over the years.

First, CDP now grants in-person appointments via the SGX Vista premises. Second, CDP now provides instant video conferencing services with CDP service representatives. CDP has also published user guides and instructional videos on the Internet and social media. There is also a new chatbot on SGX's website. That said, there are always scope for improvements to CDP's customer journey, including and particularly, for those that are less digitally-savvy.

I want to assure Dr Tan that MAS continues to engage CDP, to address many of the customers' pain points across the user journey, particularly relating to those in in-person appointments and customer statements.

So, finally, if any particular customer wants a physical notice by post, he or she can also make that request and CDP will accede to it.