Media Releases
 Published Date: 24 May 2006

Amendments to Code on Collective Investment Schemes

Singapore, 24 May 2006...The Monetary Authority of Singapore (MAS) has issued a consultation paper seeking public feedback on proposed amendments to the Code on Collective Investment Schemes (the "Code"). The Code sets out best practices on the management, operation and marketing of funds that managers and trustees are expected to observe. MAS has taken into consideration the views of the industry when formulating the proposed amendments. 

2   The proposed amendments relate to:

(i) Revising the method of calculating exposure of a scheme to a single party; and
(ii) Allowing Singapore-constituted and managed funds to invest in financial derivatives as an asset class, subject to safeguards. This will accord Singapore funds the same treatment as UCITS III funds [1].

3   MAS welcomes feedback on the proposed amendments. The consultation paper can be accessed on the MAS website > Publications > MAS Consultation Paper (Click here to view ).

4   We continue to review the Code to ensure it remains relevant to industry developments.

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1 Since March 2005, MAS has allowed UCITS III funds to be offered in Singapore under our existing regulatory framework for the offer of foreign funds. This follows the European Union's approval for UCITS III funds to invest in financial derivatives as an asset class.