The Monetary Authority of Singapore (MAS) has proposed regulatory changes aimed at accelerating the approval of new retail fund products, as part of efforts to support innovation in the investment management industry while maintaining safeguards for retail investors.
MAS on Thursday released a consultation paper seeking feedback on proposed amendments to the Code on Collective Investment Schemes (CIS Code), which governs retail investment funds offered in Singapore.
The proposed changes come amid growing investor sophistication and evolving investment needs, which have driven demand for a broader range of fund products that may not fit neatly within existing regulatory frameworks.
According to MAS, the amendments are designed to facilitate fund product innovation and expand investor choice by allowing greater flexibility in existing investment requirements and accommodating a wider range of innovative fund structures.
A key proposal is the introduction of a new Alternative Funds Appendix within the CIS Code. The appendix would provide a dedicated framework for innovative fund types, distinguishing them from traditional retail funds while setting out specific requirements tailored to their unique risk profiles.
MAS said safeguards would remain a central feature of the framework. These include requirements specific to individual fund types to address their distinct risks, as well as enhanced disclosure obligations to ensure investors have sufficient information to make informed investment decisions.
At the same time, core regulatory standards applicable to retail funds will continue to apply. These include requirements relating to asset safeguarding, liquidity management and governance, as well as obligations for fund managers and distributors to uphold fair dealing principles in the design and distribution of investment products.
The central bank said the proposed framework aims to strike a balance between encouraging innovation and preserving investor protection.
Under the new approach, MAS expects to take about three months to assess and establish the necessary safeguards for most new categories of fund products. Once these guardrails have been determined, subsequent funds of the same type that meet the prescribed requirements could be authorized within three weeks.
The streamlined process is expected to reduce time-to-market for innovative fund offerings and provide fund managers with greater regulatory clarity when developing new investment products.
It is noted that industry interest in expanding the range of retail fund offerings has increased in recent years as investors seek access to new investment themes, strategies and asset classes.
MAS opined that some proposed fund products may not always align with existing investment guidelines under the current CIS Code, creating a need for a more flexible regulatory framework.
The proposal forms part of broader efforts by MAS and the Singapore Exchange (SGX) to foster a more dynamic and competitive financial products ecosystem in Singapore.
It also builds on earlier initiatives announced in May 2026, including the streamlining of Singapore’s Complex Products framework and enhancements to Product Highlights Sheets, which are intended to improve the disclosure of key product information to investors.
MAS said the latest proposals seek to support continued innovation in Singapore’s fund management industry while ensuring that retail investors remain adequately protected as new investment products enter the market.
The regulator is inviting industry participants and other stakeholders to provide feedback on the proposed amendments as part of the consultation process.
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