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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


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. 

1. What are SIPs?

SIPs are financial investment products regulated under the Securities and Futures Act (“SFA”) that are not EIPs. SIPs are deemed to have features and terms that require more knowledge to understand.

SIPs are then further divided into two general types:

  • certain financial products that listed on a securities or futures exchange in and outside of Singapore; and
  • those that are not listed on any securities or futures exchange.

SIPs include Exchange Traded Funds, Exchange Traded Notes, Extended Settlement Contracts, Structured Warrants, Stapled Securities, Callable Bull / Bear Contracts, Futures, Options, and Unit Trusts. 

You can identify SIPs in the UTRADE platforms by the '@' appended at the end of stock names. To view the full list of SIPs, perform an Advanced Search by stock name including '@'.

Please visit SGX or MAS to find out the basic terms and features of the various types of SIPs.  

2. How does the new regime affect me?

Under the new measures, if you are a Singapore retail customer, we are required to conduct a prescribed CAR to ascertain whether you have the relevant knowledge or experience to understand the risks and features of listed SIPs you intend to continue to trade in before we can allow you to continue to trade in such products.

A customer possessing the relevant knowledge or experience to understand the risks and features of listed SIPs will thus be deemed as “passing” the CAR.

3. What are the criteria of CAR? Can I continue to invest in SIPs if I meet any of the criteria?

As a client of UOBKH, you can continue to invest in SIPs if you fulfill one of the following pre-qualification criteria:

(a) You have done 6 or more trades in SIPs.  
  You may call your UOBKH Trading Representative or Client Services Department (65369338) to enquire more.
(b) You have the relevant Education Experience.  You must have:

i. Diploma or higher qualification in
  • Accountancy
  • actuarial science
  • business finance / business administration / business management / business studies,
  • capital markets
  • economics
  • commerce
  • finance
  • financial engineering
  • financial planning
  • computational finance and insurance;
  ii. Professional finance-related qualifications.
(c) You have the relevant Working Experience:
A minimum of 3 continuous years of working experience in the preceding 10 years in either areas of the
  • Development
  • Structuring
  • Management
  • Sale
  • Trading
  • Research and Analysis
  • Provision of training of investment products.
  Work experience in Accountancy, Actuarial Science, Treasury or Financial Risk Management activities will also be considered relevant experience.
  Do note that support functions such as administrative and clerical work related to the above areas will not be considered relevant experience.  Similarly, work experience in general support functions such as operations, human resources, corporate services and information technology will not be considered relevant experience.
4. What if I have traded SIPs through other brokers?

If you have also traded in SIPs listed above through other brokers in the last 3 years, you may wish to determine whether your total trades in the relevant listed SIPs for the last 3 years exceed the minimum total number of 6 trades that are required for us to deem you to have passed the CAR.

If so, and you wish to be able to continue to trade in such SIPs, kindly call your UOBKH Trading Representative or Client Services Department (65369338)

5. Do I need to open a separate account to trade SIPs?

No, there is no need to open a separate account to trade SIPs. To continue to trade SIPs, you just need to fulfill the CAR criteria.

6. What happens if I don’t fulfill any of the pre-qualification criteria above?

You may still qualify to invest in SIPs if you go through the SGX Online Education programme (SGX Online Education for listed SIPS).

Please note that unless you are deemed to have passed the CAR, you will not be allowed to establish any new positions in any of the listed SIPs, and may only do trading in such products to close out existing positions until you pass the CAR.

7. What must I do between now and end December if I want to trade SIPs from 1 Jan 2012?

Please note the new measures affect only Singapore retail customers.  If you are our existing Singapore retail customer, we have already started conducting CAR to determine if you have fulfilled the criteria or not.

You may call your UOBKH Trading Representative or Client Services Department (65369338) to verify. 


    Reference Materials

    Master Trading Agreement
    Customer Account Review (CAR) / Customer Knowledge Assessment (CKA)
    Guide and Cautionary Notes
    Risk Warning Statement for Overseas-Listed Investment Products
    Declaration of Accredited / Expert / Institutional Investor Status

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