Martin Lee @ Sg
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Feedback on Sale of Unlisted Investment Products

MAS is proposing further regulations to protect and safeguard consumers from the sales and marketing of unlisted investment products.

Some of the main proposals include:

  • Issuers to provide a short and user-friendly product highlight sheet for more effective disclosure.
  • Financial Institutions to conduct a more enhanced due diligence before selling any products.
  • Introducing a new category of product – complex investment products.
  • Giving additional powers to MAS to enforce the Financial Advisors Act (FAA), including the introduction of a civil penalty regime.

The full consultation paper can be found here:

Review of the Regulatory Regime Governing the Sale and Marketing of Unlisted Investment Products

Inside the paper, there are many specific questions asked by MAS that require feedback from the public. The response can be sent to:

[email protected]
62254063 (fax)

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Leave a Comment:

5 comments
Daniel says 15 years ago

I wonder if there will be any actions or guidance on the sale and promotion of currently unregulated grey investment schemes such as Land Banking, Timeshare, MLM and other Ponzi type schemes.

Most of these companies claim they are not investments when talking through their lawyers to regulators. They always claim they are amazing investments when talking through their sales and marketing teams to potential customers.

You cannot regulate against stupidity but because of the culture in Singapore people do often assume if its allowed to be advertised in the media it must be OK with normal risks attached. Most of these kind of investments are very high risk and the chance of returns is tiny or non existent.

Preventing the use of the words “amazing/great/fantastic investment opportunity” in the advertising of these rubbish products would be a good start.

Reply
    lioninvestor says 15 years ago

    Certainly, some of these products should fall under regulation. Perhaps can provide your comments to MAS.

    I think even those who conduct any kind of investment courses should be subjected to some form of regulation.

    Reply
kopi-c says 15 years ago

Dear lioninvestor

Any idea how does the MAS proposal compares with the HK one? Understand that HK has already issued the guidelines 2 months ago.

Reply
    lioninvestor says 15 years ago

    Hi kopi-c,

    I have not really taken a look at the Hong Kong one even though it should be fairly easy to find it online.

    I supposed MAS would have been smart enough to extract whatever useful ideas they can from there…

    Reply
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