Singapore MAS to tighten investment-linked policy disclosures with new summary sheet

Traders Union
All News
Regulators
MAS tightens investment policy disclosure

Highlights

Monetary Authority of Singapore will introduce a standardised Product Highlights Sheet summarising features, risks, fees, and charges of investment-linked policies.
New guidelines target sales practices by requiring clear disclosure of when promotional incentives may be forfeited or clawed back upon policy surrender.
MAS highlighted that early surrender of investment-linked policies often results in losses exceeding any promotional benefits, driving its push for stronger customer disclosure.

Disclosure rules and planned product sheet

As reported by Monetary Authority of Singapore, the regulator said its Fair Dealing guidelines already require customers' attention to remain on whether a financial product meets their needs, rather than on promotional incentives. For investment-linked policies, financial institutions and their representatives are expected to assess suitability holistically, including a product's features, costs and risks, alongside a customer's needs and financial circumstances.

MAS said current disclosure requirements for investment-linked policies already cover key cost and benefit information. Policy illustrations are required to show the net financial benefit a policyholder may receive on surrender, based on premiums paid to date and assumed rates of return, after contractual bonuses and relevant fees and charges are taken into account.

The regulator added that these illustrations show projected surrender values and the cumulative effect of deductions over the policy term, including beyond the minimum premium commitment period. Financial institutions and their representatives must also explain the illustrated benefits and costs, including any conditions attached to promotional incentives and when those benefits may be forfeited or clawed back.

Implications for insurers and retail customers

MAS said it will further strengthen disclosure by shortly introducing a Product Highlights Sheet tailored more specifically to investment-linked policies. The document is intended to provide a standardised summary of key features, risks, fees and charges, helping customers assess the overall costs and benefits of a policy and whether it suits their needs.

The clarification comes as early surrender remains a key consumer risk in the product segment. MAS noted that investment-linked policies typically impose surrender charges in the early policy years, meaning losses from early exit can outweigh promotional incentives, especially if those incentives are invalidated after surrender.

MAS said it is working with the industry to implement the Product Highlights Sheet and will announce further details in due course. The move signals continued regulatory focus on sales practices and comparability in Singapore's retail insurance market.

Our earlier article looked at the Philippines’ planned sovereign bond pricing reforms and the expected inclusion of peso government bonds in J.P. Morgan’s emerging-market index, steps meant to improve comparability, liquidity, and foreign participation. It also stressed that market modernization alone is not enough: deeper capital markets and stronger investor trust depend on credible rules, better disclosure and supervision, and broader structural reforms that help channel savings into productive investment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.