Media Releases
Published Date: 22 April 2004

MAS Invites Comments on the Securities and Futures (Amendment) Bill 2004 and Financial Advisers (Amendment) Bill 2004

Singapore, 22 April 2004...The Monetary Authority of Singapore (MAS) invites comments on the consultation paper released today on the draft Amendment Bills to the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA).  The amendments are targeted for first reading in Parliament during the second half of 2004. 

2   The draft Amendment Bills seek primarily to implement the policy changes proposed by MAS taking into account feedback received from its consultation paper issued in September 2003. MAS' response to the comments received can be found at: (268.1 KB)   

The more significant changes to the SFA include:

  • Abolishing the concept of a public offer and requiring a prospectus for all offers of investments, unless specifically exempted.
  • Introducing new exemptions to prospectus requirements, specifically exemptions for private placements (up to 20 offerees) and small offerings (up to $5 million).
  • Extending prospectus liability to issue managers.
  • Repealing and replacing Parts II and III to clarify the regulatory framework for markets and introducing a designation approach for regulating clearing facilities.

Proposed amendments to the FAA1 include:

  • Waiving the need for reasonable basis for generally circulated advice provided by financial advisers.
  • Exempting financial advisers from the business conduct requirements in respect of financial advice given to overseas investors.

4   We would like to invite comments on the two draft Amendment Bills by 24 May 2004.  The consultation paper and the draft Amendment Bills can be found on MAS' website at:


The policy consultation in September 2003 was part of the second phase of amendments to the SFA and FAA.  The amendments will implement several policy reforms as part of MAS' efforts to keep our regulatory framework responsive and conducive to developments in the capital markets.  The topics covered in the consultation included:

  • Introducing additional exemptions from the prospectus requirements under Part XIII of the SFA.
  • Re-examining the prospectus liability for underwriters and other professionals.
  • Refining the legislative framework for markets and clearing facilities in the SFA.
  • Reviewing the product scope of the FAA.
  • Exempting from the requirement for a reasonable basis in respect of generally circulated advice.
  • Exempting financial advisers from business conduct requirements when dealing with overseas investors, subject to certain safeguards.
  • Rationalising the regulatory categories of non-retail investors in the SFA and FAA.


1 To fully implement these policies, MAS will make necessary amendments to the subsidiary legislation to the FAA.