The Monetary Authority of Singapore (MAS) has announced proposals to improve the clarity of Product Highlights Sheets (PHS) and streamline the framework for complex investment products. These changes are designed to empower investors to make informed decisions whilst ensuring those needing extra guidance receive appropriate support.
MAS’s proposed enhancements to PHS include revised templates that highlight key product features on the first page and employ a “question and answer” format to engage investors. Complex products will be marked with a red label, signalling the need for professional advice. Additionally, Investment-Linked Policies will now require a PHS.
The complex products framework, established in 2012, categorises products as “complex” or “non-complex” and mandates distribution safeguards for complex products. MAS is considering removing the requirement for mandatory financial advice, except for those needing additional protection, due to improved investor access to product knowledge. Instead, a Product Knowledge Assessment (PKA) will be introduced as a self-assessment tool to evaluate an investor’s understanding of complex products.
MAS is also proposing targeted safeguards for “Selected Clients” who require added protection. These clients will undergo a mandatory financial advisory process, ensuring they have access to safeguards such as having a trusted individual present during advisory sessions and a call-back process to confirm investment decisions.
MAS is seeking feedback on these proposals, with comments due by 1 September 2025. This initiative reflects MAS’s commitment to adapting its frameworks to the evolving needs of Singapore’s retail investors.
“`
