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MAS presents new classification of investment products

This seeks to enhance the existing scheme originally introduced in 2012. 

The Monetary Authority of Singapore (MAS) revealed a consultation paper on the classification of certain investment products.

The paper seeks to improve the existing complex products regime originally introduced in 2012, which would allow retail investors to access a range of investment products. 

Views on the following are expected to be put under review, namely, the classification of collective investment schemes recognised by MAS as simple investment products, debentures with varying interest payments or convertible features as complex investment products, appropriate classification of perpetual securities and preference shares, and the removal of the requirement for FIs to conduct separate assessments on the investment knowledge of customers.

Lim Tuang Tee, Assistant Managing Director, said that this is to manage the balance between retail investors’ convenience and the safeguards in place.

For further reading, the paper can be found here.

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