Singapore’s central bank will ease some rules governing the sale of complex investment products to retail investors, as regulators seek to balance investor protection with growing demand for self-directed investing platforms and digital financial services.
The Monetary Authority of Singapore (MAS) said it will proceed with plans to remove the mandatory financial advice requirement for most retail investors purchasing complex products, while retaining stricter safeguards for customers deemed to require additional protection.
The changes follow a public consultation launched in 2025 on proposed enhancements to Product Highlights Sheets (PHS) and reforms to the distribution framework for complex products.
Under the revised framework, retail investors will receive enhanced disclosure documents designed to highlight key product features and risks more clearly.
Financial institutions will also be required to issue pre-transaction alerts reminding customers to assess whether a product suits their financial circumstances or to seek professional advice before investing.
The move comes as regulators globally reassess investor protection frameworks amid rising participation in online trading and digital wealth platforms, which have given retail investors greater direct access to sophisticated investment products.
MAS said investors who fail the Customer Knowledge Assessment, which evaluates whether customers possess sufficient knowledge or experience to understand complex products, will continue to face additional safeguards.
These include mandatory financial advice, accompaniment by a trusted individual during advisory sessions, and pre-transaction callback checks by financial institutions.
Investment-linked insurance policies will also now be classified as complex products and require Product Highlights Sheets, reflecting what MAS described as the structural complexity of combining insurance and investment features.
The regulator said respondents to the consultation were broadly supportive of the proposals, particularly the shift toward a more disclosure-based regime and a streamlined process for self-directed investors.
“These measures foster an accessible and dynamic market,” said Lim Tuang Lee, assistant managing director for capital markets at MAS. “They acknowledge the growing sophistication of investors who can self-direct and analyse their own investments while catering to the needs of selected investors that may continue to require additional support and safeguards.”
MAS said legislative amendments to implement the changes will be consulted on at a later date.