Press Statement on MAS Consultation Paper on Amendments to the Code on Collective Investment Schemes: Ensure Proper Disclosure of Risks but Retail Investors Must Play Their Part

Date: July 10, 2026

The Securities Investors Association (Singapore) (SIAS) welcomes the Monetary Authority of Singapore’s (MAS) consultation paper proposing amendments to the Code on Collective Investment Schemes that would broaden retail investors’ access to futures-based single commodity funds and a wider range of single-country government bond funds.

The proposals reflect the evolution of Singapore’s investment landscape in which retail investors today have access to significantly more information, educational resources and investment tools than in the past. Many are also increasingly familiar with a broader range of investment products and are seeking greater choice in constructing diversified portfolios. This latest move brings these investment products closer to home, which means that investors need not tap into overseas markets.

Measures that enable suitable investment products to be brought to market more efficiently are therefore a positive development consistent with a maturing investment landscape.

At the same time, SIAS notes that some of the proposed products may employ derivatives or have limited diversification, making them potentially more volatile than traditional collective investment schemes.

While MAS has proposed enhanced risk disclosures and other safeguards, investors should not regard these as a substitute for their own due diligence.

Every investment carries risks, and higher potential returns are often accompanied by higher levels of risk. Therefore, investors should take the time to understand how these products work, the role derivatives play, the specific risks involved, and whether the investment is suitable for their financial objectives, investment horizon and risk tolerance.

They should also be prepared for potentially significant price fluctuations and understand that concentrated exposure to a single commodity or a single country’s government bonds can produce outcomes that differ markedly from those of diversified funds.

SIAS has consistently supported a disclosure-based regulatory framework that empowers investors by providing them with clear, timely and meaningful information – but also one where investors also have a part to play.

Such a framework works best when accompanied by strong financial literacy and a commitment by investors to make informed decisions. Product innovation and broader market access should therefore go hand in hand with investor education and personal responsibility.

As Singapore’s capital markets continue to develop, SIAS remains committed to working with regulators, financial institutions and other stakeholders to strengthen investor education and promote informed investing.

Ultimately, well-informed investors are the strongest safeguard against unsuitable investment decisions and are essential to the continued growth of a trusted and vibrant investment ecosystem.

 

David Gerald
For Management Committee, SIAS