The Code on Collective Investment Schemes (Code) applies to Singapore-domiciled collective investment schemes authorised under Section 286 of the Securities and Futures Act, Chapter 289 of Singapore (SFA) for retail offer in Singapore (Authorised Funds) and, to a lesser extent, to offshore-domiciled collective investment schemes recognised under Section 287 of the SFA also for retail offer in Singapore (Recognised Funds).
The Consultation Paper seeks to amend the Code to develop specific rules for retail offers of Authorised Funds that invest solely in gold, silver and platinum (Precious Metals Funds), as well as to enhance and refine the regulatory framework for collective investment schemes in three key areas: (i) enhance transparency and market discipline; (ii) improve operational effectiveness and (iii) provide greater clarity to market practitioners. The proposals in the Consultation Paper are intended to apply similarly to investment linked policy (ILP) sub-funds issued by insurers under MAS Notice 307, for consistency in the regulatory treatment of collective investment schemes and ILP sub-funds.
This briefing focuses on the proposals affecting Authorised Funds and Recognised Funds, excluding proposals affecting and relating only to real estate investment trusts (REITs).
Key amendments proposed in the Consultation Paper
A summary of the key amendments proposed in the Consultation Paper is set out below.
|1.||Precious Metals Funds permitted subject to additional requirements||
|2.||Disclosure requirements on a manager’s credit risk assessment process||
|3.||Additional disclosure requirements on securities lending or repo1 in semi-annual and annual reports||
|4.||Additional disclosure requirements to apply equally to Recognised Funds||
|5.||Advertising rules for Authorised and Recognised Funds||
|6.||Redemption period for all funds except property funds and hedge funds||
Invitation for Comments
Please refer to the Consultation Paper for the complete set of proposals, as well as the list of consultation questions. The deadline for comments and feedback to be submitted to the MAS is December 12, 2016. We are collating comments from clients and industry participants for submission to the MAS. If you have any comments on the proposals that you would like us to submit on your behalf, please contact Han Ming Ho (+65 6230 3966, firstname.lastname@example.org) or Josephine Law (+65 6230 3916, email@example.com).
1 Refers to both repurchase transactions and reverse repurchase transactions.
2 Jointly issued by the Investment Management Association of Singapore (IMAS) and the Life Insurance Association.
3 Issued by IMAS.
If you have any questions regarding this update, please contact the Sidley lawyer with whom you usually work, or
| Han Ming Ho
+65 6230 3966
| Josephine Law
+65 6230 3916
To receive Sidley Updates, please subscribe at www.sidley.com/subscribe.
Sidley Austin provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship.
Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212.839.5300; One South Dearborn, Chicago, IL 60603, 312.853.7000; and 1501 K Street, N.W., Washington, D.C. 20005, 202.736.8000.