Update on Foreign Excluded Investment Products
MAS has updated the regulatory requirements relating to SIPs and EIPs. With effect from 4 January 2013, foreign shares (e.g. Citigroup listed on NYSE and Bank of China listed on HKEx) and other overseas-listed investment products which would otherwise be considered EIPs on SGX would now be reclassified as EIPs as well.
Clients who have not passed the CAR can now trade in these foreign EIPs. When trading online via UTRADE, you will be prompted to accept the Risk Warning Statement (RWS) before you can place your first order for a foreign EIP.
Clients who have passed the CAR will also be required to accept the RWS prior to your first order for a foreign SIP/EIP after 3 January 2013.
Clients with online access may submit the acknowledgement of Risk Warning Statement by logging into their online account.
For Joint Account Holders or clients who do not have an online account, please submit hard copy Risk Warning Statement acknowledgement. A copy of the Risk Warning Statement is available here
IMPORTANT INFORMATION REGARDING SPECIFIED INVESTMENT PRODUCTS (“SIPs”)
The MAS has released new measures that will come into effect from 1 January 2012 to further safeguard the interests of Singapore retail investors.
Under this new regime, financial products will be classified as “Excluded Investment Products” (“EIPs”) or “Specified Investment Products” (“SIPs”).
Please note that these new regime applies to trading in “SIPs” and that it affects Singapore retail customers. (It will not affect institutional investors, expert investors, accredited investors, and non-residents.)
Under the new regime, UOB Kay Hian (“UOBKH”), and other intermediaries in Singapore, will be required to assess whether a Singapore retail customer has the relevant knowledge or experience to understand the risks and features of SIPs.
Please note that for existing customers of UOBKH, we have already started conducting Customer Account Review (“CAR” – see below for more information) for some clients to determine if you have fulfilled the criteria or not.