Singapore, 13 June 2005...The Monetary Authority of Singapore (MAS) today released a consultation paper on the draft Financial Advisers (Traded Endowment Policies (TEPs) and Traded Life Policies (TLPs) - Prescribed Investment Products) Regulations 2005.

2   The Regulations prescribe TEPs and TLPs as investment products under the Financial Advisers Act and set out the restrictions that will apply to any financial adviser choosing to distribute TEP/TLPs. They incorporate the policy proposals set out in a previous consultation exercise in November 2003.

3   The provision of any financial advice on TLPs is prohibited to retail investors. Licensed and exempt financial advisers will only be allowed to provide advice on TEPs to the retail market on condition that the subscription amount in such investments is no less than S$20,000. Other specified requirements include: 

a)   Recognised Jurisdiction - TEPS sold here must be constituted in a recognized jurisdiction.

b)   Regulation of Insurer and Market Maker - Both the foreign insurer underwriting the underlying endowment policy and the market maker should be regulated in their principal place of business. 

c)   Representative of Market Maker - The market maker of a TEP must appoint a representative resident in Singapore.

d)   Access to Policyholder Compensation Scheme and Dispute Resolution Scheme - Singapore investors must have access to a policyholder compensation scheme and dispute resolution scheme.

The requirements are set out in detail in the Schedule to the draft Regulations.

4   A copy of the public consultation is available on the MAS website.(Click here to view the Consultation Paper (600.5 KB))

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