Press Release: SIAS Response to MAS Proposes to Enhance Product Highlights Sheets and Streamline Framework for Complex Products

Date: July 1, 2025

Here is our response to a consult paper by MAS on it’s proposal to enhance product highlights sheets and streamline framework for complex products:

SIAS welcomes the introduction of a clearer, more reader-friendly document for investors, particularly in relation to complex investment products. The use of a “red” label to clearly flag a product as “complex” and the reorganisation of content to present key risks upfront on the first page of the Product Highlight Sheet will help investors quickly identify the nature of the product and make more informed decisions.

Investors today are increasingly savvy. Many conduct their own research, make independent investment decisions, and even trade complex products online, both in Singapore and overseas. The new streamlined framework for complex products strikes the right balance — introducing sufficient safeguards to help investors understand the risks, while preserving their autonomy to choose products that suit their investment goals.

SIAS supports the continued requirement for vulnerable groups of investors to obtain licensed financial advice before purchasing complex products.

At the same time, SIAS strongly urges all investors to thoroughly understand the risks involved in complex products before making any investment decision, even when these risks are clearly highlighted on the first page of the Product Highlight Sheet. SIAS remains committed to providing educational resources to help investors better understand complex products and support them on their investment journey.

Investment-linked policies are complex products with multiple layers and are not without risk. Investors should be aware of their exposure to market volatility, fund management fees, and the underlying complex products within these policies. SIAS supports the use of a red label in the Product Highlight Sheet to help consumers clearly identify and better understand the nature of what they are purchasing.

With less frictions, investors who have been active in overseas markets may now turn their attention to local opportunities. They may not realise that complex products offered abroad and in Singapore carry the same inherent risks and trading overseas will not have the protection of Singapore’s regulations if something goes wrong or if a dispute arises with the platform. They will also not have the benefit of SIAS’ representation.

Beyond encouraging greater interest in the local market, these changes are timely and necessary given the evolving investment habits of investors.

 

David Gerald
Founder, President & CEO
SIAS