The Monetary Authority of Singapore (MAS) has proposed a series of changes aimed at improving how retail investors access and understand information about investment products.
The central bank is seeking public feedback on plans to enhance the Product Highlights Sheet (PHS) and streamline existing requirements for the sale of complex products.
The move comes as more investors rely on digital platforms and self-directed tools to manage their investments, while MAS noted that some individuals may still require more support to understand the features and risks involved.
MAS Proposes New Product Sheets and Safeguard Changes
Among the proposed updates is a revised PHS format that places key product details at the front page, adopts a clearer question-and-answer layout, and flags complex products with a distinct red label.
The PHS, already required for certain products such as shares and bonds, would now also apply to Investment-Linked Policies under the new rules.
MAS is also reviewing the framework for complex products, first introduced in 2012.
The current rules require financial institutions to assess a retail investor’s experience and qualifications before selling complex products.
In cases where an investor lacks sufficient knowledge, they must either complete a learning module or receive mandatory financial advice.
Citing improvements in investor understanding and the availability of clearer product disclosures, MAS is proposing to remove the requirement for compulsory advice in most situations.
Instead, investors would receive more prominent disclosures and warnings, while being encouraged to seek professional guidance if needed.
To support this shift, MAS plans to introduce a Product Knowledge Assessment, a self-check tool designed to gauge an investor’s understanding of product features and risks.
The tool also serves to raise awareness of the nature and complexity of such products, helping investors make more informed decisions.
This would be used alongside existing measures such as educational or professional background checks.
Additional safeguards would remain in place for individuals deemed to require more protection, referred to by MAS as “Selected Clients”.
These include individuals who meet any two of the following criteria: aged 62 or above, not proficient in English, or without GCE ‘O’ or ‘N’ level certifications or equivalent.
These investors would still be required to undergo financial advisory processes, including having a trusted individual present and a follow-up call to confirm their investment decision.
The public consultation will run until 1 September 2025.
MAS has published a consultation paper with full details on its website and is inviting submissions through an online form.
Featured image: Edited by Fintech News Singapore, based on image by Meriç Dağlı via Unsplash
