MAS Consults On Proposed Changes To Complex Products Regime

On 3 November 2021, the Monetary Authority of Singapore ("MAS") issued a consultation paper inviting public comments on proposed changes to the complex products regime, which generally requires capital markets products to be classified as either an Excluded Investment Product ("EIP") or a Specified Investment Product ("SIP").

To recap, EIPs are generally investment products which MAS considers to be well understood amongst retail investors, whereas SIPs are investment products that are more complex, particularly by reason of them involving the use of derivatives.

MAS is now proposing to update the regime by modifying the current classification of certain products and the safeguards that apply to the distribution of SIPs.