MAS proposes revisions to PHS, complex products framework

Investment-Linked Policies (ILPs) will require a PHS under the proposals.

The Monetary Authority of Singapore (MAS) is seeking feedback on proposals to enhance the requirements for product highlight sheets (PHS) and streamline complex products frameworks.

The central bank proposes revising PHS templates to better understand key product information. This includes adoption of a ‘question and answer’ format, and for the key product features to be featured in the first page.

MAS also proposed that complex products be indicated with a red label alert so that investors may have the chance to seek advice as appropriate.

Investment-Linked Policies (ILPs) will require a PHS under the proposals.

MAS also proposed streamlining the complex products framework introduced in 2012.

Amongst changes include the removal of requirement for mandatory financial advice; introduce a product knowledge assessment (PKA), which comprises questions on key features and risk of the complex product as a self-assessment and awareness-building tool; and impose targeted safeguards for investors who require added protection.