SERVING THE PUBLIC,
- PROTECTING CONSUMERS
- Financial Advisory Industry Review
- Enhancing Prospectus Disclosure Rules For Offers Of Securities
ENHANCING PROSPECTUS DISCLOSURE RULES FOR OFFERS OF SECURITIES
In October 2013, MAS issued a policy consultation paper proposing measures to improve the readability of prospectuses and facilitate better understanding by retail investors of key information presented in prospectuses. The proposals include:
- Extending the requirement for a product highlights sheet (PHS) to offers of equity, debt and hybrid securities; and
- Allowing certain information located outside a prospectus to be incorporated into the prospectus by making reference to the information.
MAS is currently fine-tuning the proposals in view of the feedback received and will be issuing the consultation responses within the next few months. We will also be consulting the public on the relevant legislative amendments for the proposals, as well as on a regulatory guide to promote good drafting practices for prospectuses.