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The Monetary Authority of Singapore (MAS) will strengthen its regulatory framework to safeguard investor interests by proposing amendments to the Securities and Futures Act (SFA) that will be discussed at the country’s parliament next year.

In a press release on September 22, the MAS said it will extend its capital markets regulations to non-conventional investment products, including the sale of precious metals with guaranteed buy-back at an agreed price.

Arrangements involving gold, silver and platinum will be regulated as debentures under the SFA.

Collectively-managed investment schemes, similar to traditionally regulated investment funds but do not pool investors’ contributions, will also be regulated under the SFA, the central bank said.

Meanwhile, orientations for retail investors will need to be authorised and will be restricted to investments in securities and other liquid assets such as precious metals, or those that have stable income-generating abilities, such as completed real estate.

With the enhanced regulatory framework, financial institutions will be required to treat new customers as retail investors even if they are eligible as Accredited Investors (AIs), unless they opt for AI status.-VNA