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MAS Proposes Changes to Complex Products Regime
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The Monetary Authority of Singapore (MAS) has announced plans to review its Complex Products Regime, aimed at promoting investor protection while increasing accessibility to investment products.
What’s Changing?
The MAS has decided to broaden the scope of the consultation on the regime, which was initially proposed to classify perpetual securities, preference shares, and debentures as Enhanced Investment Products (EIP) or Specified Investment Products (SIP). The regulator will now conduct a more comprehensive review of the regime.
Key Takeaways
- Financial institutions will need to be prepared for a holistic consultation on the Complex Products Regime.
- The consultation may also touch on changes to disclosure requirements in Product Highlights Sheets (PHS) and classification of collective investment schemes (CIS) and securities lending/repurchase.
- Financial intermediaries are advised to review their product classification once the changes take effect and notify approved exchanges and/or distributors as necessary.
What Does This Mean for Financial Institutions?
Financial institutions operating in Singapore can expect a more comprehensive consultation on the Complex Products Regime, which will balance retail investor protection with increased accessibility to investment products. The regulator’s moves aim to promote greater transparency and fairness in the sale of complex financial products.
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Experts Contact Information
- Kwok Wui San: Partner, Regulatory Risk and Compliance Leader +65 8218 8727 | wui.san.kwok@pwc.com
- Julia Leong: Partner, Regulatory Risk and Compliance +65 9475 8706 | julia.sw.leong@pwc.com
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