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November 4, 2021

Singapore proposes regulatory changes in favor of retail investors

By Verdict Staff

The Monetary Authority of Singapore (MAS) has proposed to classify certain investment products as complex in a bid to increase the protection for retail investors.

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How attractive are current investment opportunities in Europe?

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A consultation paper issued by the regulator, also proposes changes to expand access to diversified investment funds for retail investors.

It is aimed at improving the current complex product regime, which was first rolled out in 2012, the regulator said. S

The framework will allow retail investors to access a spectrum of investment offerings and offer them a better understanding of the features and risks of products that are considered complex.

MAS said that it is seeking views on a number of recommendations as part of its regular review of the regulatory regime.

The includes views on collective investment schemes as simple investment products and classifying debentures with varying interest payments or convertible features as complex investment products.

The regulator is also seeking opinions on the proper classification of perpetual securities and preference shares, and suitable safeguards for investors looking to in such products.

It is also seeking views on eliminating the requirement for financial institutions to carry out separate assessments on the investment knowledge and experience of customers as part of advisory process.

MAS assistant managing director for capital markets Lim Lee said: “With these proposals, we strive to maintain the balance between providing retail investors convenient access to a range of investment products, while ensuring that sufficient safeguards are in place to enable them to make informed investment decisions.

“These include helping retail investors better understand and appreciate the unique characteristics and risks associated with more complex products.”

In September this year, an advisory group for the US Securities and Exchange Commission (SEC) voted in favor of letting ordinary investors invest in private funds.

At present, only institutional and wealthy investors in the US are eligible to invest in private equity funds.

The SEC’s Asset Management Advisory Committee approved a report that recommended the regulator to enlarge the common investor’s access to private-equity, private-debt and real-estate vehicles.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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