MAS Issues Response to Feedback on Proposals to the Regulatory Regime for Listed and Unlisted Investment Products
Singapore, 21 October 2010...MAS has issued its response to feedback on the proposals in the Consultation Paper on the Regulatory Regime for Listed and Unlisted Investment Products, which was published on 28 January 2010.
2 MAS received extensive feedback from consumers and the industry, which we have carefully reviewed and considered. MAS thanks all respondents for their supportive and useful feedback.
3 MAS' response addresses feedback on the following proposals:
(i) Financial advisers to put in place formal policies and procedures on the sale of investment products;
(ii) Intermediaries to conduct a Customer Knowledge Assessment prior to a sale to assess whether a customer who wishes to purchase an unlisted investment product has the relevant knowledge or experience to understand the risks and features of the product;
(iii) Intermediaries to conduct a Customer Account Review to ascertain whether a customer who wishes to purchase a listed investment product has the relevant knowledge or experience to understand the risks and features of derivatives, before approving the customer’s account for trading such products;
(iv) Training of representatives and introducing a new Capital Markets and Financial Advisory Services (“CMFAS”) examination module for an expanded scope of product knowledge; and
(v) Requirements for Product Highlights Sheet.
4 Having taken into account the feedback received, MAS will proceed to implement most of the proposals consulted on. Proposals which do not require legislative amendments will be implemented first. Financial institutions will be expected to adopt the remaining proposals even before legislative implementation as good practice in conducting business with their customers.
5 Please click here (380.9 KB) to view MAS' response to the feedback received.
Note to Editor:
The Consultation Paper on the Regulatory Regime for Listed and Unlisted Investment Products was published on 28 January 2010. The proposals are aimed at enhancing the safeguards for retail customers for both listed and unlisted investment products. MAS proposed imposing new requirements on intermediaries to formally assess a retail customer's investment knowledge or experience before selling investment products to the customer. The new requirements would apply for all investment products other than a list of products that MAS will prescribe. MAS also proposed enhancing training of representatives, introducing a new CMFAS examination module, and proposed requirements for Product Highlights Sheet. Please refer to Annex A (383.7 KB) for an overview of the current measures and new measures to further safeguard retail investors.