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MAS proposes framework to widen retail fund offerings

An Alternative Funds Appendix will accommodate new investment products.

The Monetary Authority of Singapore (MAS) has proposed a streamlined approval framework that could allow new retail fund products to be authorised within three weeks once safeguards for the fund type are in place.

MAS, under the proposed amendments to the Code on Collective Investment Schemes, plans to introduce an Alternative Funds Appendix for products that do not fit existing investment guidelines.

The framework would allow adjustments to existing investment requirements and accommodate a broader range of fund structures offered to retail investors.

The specific rules and safeguards for most new fund types are expected to take about three months to establish.  

Subsequent funds of the same type could then be authorised within three weeks if they meet the established requirements.

New products would be subject to fund-specific requirements addressing their risks, as well as enhanced disclosure rules. Existing requirements covering areas including asset safeguarding and liquidity would continue to apply.

Fund managers and distributors would remain responsible for ensuring products are suitable for their target customer segments and that investors receive clear and timely information.

The proposal follows changes announced by MAS in May to streamline the Complex Products framework and revise Product Highlights Sheets.

The regulator is seeking feedback on the consultation until 10 August 2026.

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