Media Releases
Published Date: 02 December 2005

Notice on Dual Currency Investments Issued


 
 

Singapore, 02 Dec 05...The Monetary Authority of Singapore (MAS) has issued a Notice on Dual Currency Investments (DCIs) under the Financial Advisers Act.

2   The nature of DCIs is such that significant exchange rate fluctuations could result in the customer losing a substantial portion of the principal amount in terms of the base currency. In view of the higher risks of DCIs compared to traditional deposits and other structured deposits, MAS has decided to impose additional market conduct rules on these investment products.

3   The Notice sets out product disclosure requirements specific to DCIs. For example, banks should disclose that DCIs involve a currency option which confers on the deposit-taking institution the right to repay the principal sum at maturity in either the base or alternate currency. Banks are prohibited from using the term "deposit" or "structured deposit" in the marketing of DCIs.

4   The banking industry had been consulted on the new rules for DCIs.

5   Banks are given till 1 March 2006 to comply with the Notice.

(Click here for the FAA-N11 Notice on Dual Currency Investments (26 KB) )

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