Monetary Authority of Singapore Annual Report 2012/2013
Serving the Public


Enhancing Regulatory Regime to Raise Market Conduct Standards and Safeguarding Interests of Retail Investors and Public

Following the review of its regulatory regime governing the sale and marketing of listed and unlisted investment products in 2009 and 2010, MAS has made significant enhancements to its regulatory regime to raise market conduct standards and protect the interests of retail investors. These include implementing measures aimedat promoting more effective disclosure for retail investment products, and introducing requirements for intermediaries to formally assess a retail customer’s investment knowledge and experience before selling certain more complex investment products (termed Specified Investment Products or SIPs) to the customer.

To give legal effect to measures that require legislative changes, the Securities and Futures (Amendment) Act 2012 and Financial Advisers (Amendment) Act 2012 were passed by Parliament in November 2012.

To ensure the continued relevance and effectiveness of the requirements, as well as in response to public feedback, MAS refined the list of complex investment products that are subject to additional safeguards in December 2012. Intermediaries are also required to furnish a Risk Warning Statement as prescribed by MAS to all retail investors before allowing them to transact in an overseas-listed investment product for the first time on or after 28 February 2013. This is to ensure that investors are adequately informed of the risks involved in trading overseas-listed investment products.

MAS will continue to monitor our regulatory framework to facilitate the growth of the capital markets while ensuring that appropriate safeguards are in place to protect the investing public’s interests.