MAS Issues First Part of Response to Feedback on Proposals to Strengthen the Regulation of the Sale and Marketing of Unlisted Investment Products

Singapore, 8 September 2009...MAS has issued the first part of its response to feedback on the proposals in the Consultation Paper on the Review of the Regulatory Regime Governing the Sale and Marketing of Unlisted Investment Products, which was published on 12 March 2009.

2   MAS received supportive and useful feedback from consumers and the industry during our six-week consultation period which ended on 23 April 2009. We have reviewed and considered the feedback and are issuing our response in two parts as some of the proposals require further study and consideration.

3   The first part of MAS' response addresses feedback on the proposals to:

(i) promote more effective disclosure, including the introduction of a Product Highlights Sheet, new ongoing disclosure requirements, and restrictions on advertising and marketing materials;

(ii) strengthen fair dealing in the sale and advisory process, including enhanced requirements for the due diligence of new products and the advisory process, restrictions on sales without advice, and restrictions on bank teller activities;

(iii) introduce the concept of a complex investment product and enhanced competency requirements for representatives selling complex investment products; and

(iv) introduce a cooling off period of seven days for unlisted debentures.

http://www.mas.gov.sg/resource/publications/consult_papers/2009/Response to FB Received for Phase 1.pdf

***

Note to Editor:

The Consultation Paper on the Review of the Regulatory Regime Governing the Sale and Marketing of Unlisted Investment Products proposed enhancements to the regulatory framework for unlisted products to enable MAS to better achieve its supervisory objectives. The proposals focused on promoting effective disclosure by improving the quality of information available to investors, strengthening fair dealing in the sale and advisory process and enhancing MAS' powers under the Financial Advisers Act (FAA). To view the consultation paper, please click on the following: http://www.mas.gov.sg/resource/publications/consult_papers/2009/MAS%20consult%20paper%20structured%20pdt%20review.pdf