The Monetary Authority of Singapore (MAS) has released a list of proposals to tighten industry standards for the sale and marketing of unlisted investment products.

The consultation paper comes after the global financial crisis led to the failure of several structured notes in Singapore.

MAS is seeking public feedback on the following proposals:

• Issuers will be required to prepare a short, user-friendly Product Highlights Sheet to promote more effective disclosure. Requirements for ongoing disclosure and fair advertising will be enhanced.
• Financial institutions (FIs) will be required to undertake an enhanced due-diligence process before selling new investment products.
• A new category of 'complex investment products' will be introduced and made subject to enhanced regulatory requirements.

• FIs will be able to sell such products only when they give customers advice on whether it is suitable for them. All marketingmaterials for complex investment products will carry warning.

• MAS' powers to investigate and take regulatory action will be strengthened through several measures, including the introduction of a civil-penalty regime under the Financial Advisers Act.

The full paper is available at www.mas.gov.sg and the consultation period will end on April 23.

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