The Monetary Authority of Singapore (MAS) announced on May 15 that most retail investors will no longer need mandatory financial advice before buying complex investment products such as investment-linked policies (ILPs) and structured notes [1, 2]. The change aims to ease access to complex products for investors who can make independent decisions.
However, mandatory advice will still apply to investors meeting two of three criteria: those aged 62 or older, those lacking English proficiency, and those with academic qualifications below GCE O or N levels [1, 2]. For these investors, additional safeguards remain in place, including the requirement for a trusted person to accompany them through the sales and advisory process.
Financial institutions must also conduct pre-transaction callback calls to confirm that these investors understand the product risks before proceeding [1, 2]. These measures target groups with potentially greater needs for support.
To improve transparency for all investors, MAS will enhance the Product Highlights Sheet (PHS) with clearer disclosures. Pre-transaction alerts will be introduced to remind investors to carefully review product suitability and risks before committing [1, 2].
Complex financial products covered under the revised framework include structured notes, derivatives, ILPs, and other products beyond standard stocks, simple bonds, REITs, or simple funds [1, 2]. MAS Assistant Managing Director Lim Tuan Lee said, "These measures will create a more accessible and vibrant market. They consider the growing maturity of investors able to make independent investment decisions, while also addressing the needs of those requiring extra support and protection" [1].
The MAS consultation to streamline the sales framework and enhance disclosure began in July 2025, with final changes announced this month [1, 2]. The new rules took effect May 15, 2026, marking a shift toward greater investor responsibility balanced with targeted protections for vulnerable groups.
