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Monetary Authority of Singapore wants to broaden oversight to more investments

Published on Jul 21, 2014 5:20 PM
 
The Monetary Authority of Singapore is proposing new rules that will extend the arm of the law over esoteric investment products, such as landbanking and precious metal buy-back schemes, that are currently beyond its regulatory ambit. -- PHOTO: ST FILE

SINGAPORE - The Monetary Authority of Singapore is proposing new rules that will extend the arm of the law over esoteric investment products, such as landbanking and precious metal buy-back schemes, that are currently beyond its regulatory ambit.

In a paper released on Monday, the MAS said that such schemes are often deliberately structured so that they fall out of the regulator's scope.

"Many of these products have features that are similar to regulated capital markets products, but are structured to assign ownership of underlying physical assets to investors, thereby taking them outside the regulatory perimeter of the Securities and Futures Act (SFA)."

Under MAS' proposals, buy-back arrangements involving precious metals and collectively-managed investment schemes will come under the SFA.

 
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