The Monetary Authority of Singapore (MAS) has concluded its consultation on enhancing Product Highlights Sheets (PHS) and streamlining the framework for complex products. The changes aim to provide retail investors with more flexibility and better access to information, allowing them to opt in or out of financial advice for complex products, except for those needing additional protection.
The enhanced PHS will now clearly outline the key features and risks of complex products, such as structured notes and derivatives, to aid investors in making informed decisions. Investment-Linked Policies (ILPs) will also require a PHS, reflecting their complexity. Pre-transaction alerts will be introduced to remind investors to assess the suitability of products for their financial circumstances.
MAS’s proposals received broad support, with respondents welcoming the shift towards a disclosure-based regime. The finalised PHS templates and distribution safeguards incorporate feedback from the consultation. Assistant Managing Director of Capital Markets, Lim Tuang Lee, stated, “These measures foster an accessible and dynamic market,” acknowledging the sophistication of self-directed investors whilst catering to those needing additional support.
The detailed response to the consultation and final measures are available on the MAS website. Legislative amendments to implement these changes will be consulted on at a later date.
