Amendments to MAS Notices 302, 318, 320, 322 and Guideline ID 01/17

Circular No. ID 05/18 29 June 2018 To Chief Executives All Direct Life and Composite Insurers Dear Sir/Madam Amendments to (i) MAS Notices 302, 318, 320 and 322, and (ii) Guidelines on the Online Distribution of Life Policies with no Advice (Guideline ID 01/17) MAS issued the Public Consultation on the Recommendations of the Financial Advisory Industry Review (“FAIR”) and our response to feedback on 5 March 2013 and 30 September 2013 respectively. The papers are available on MAS website (www.mas.gov.sg). 2 Since the issuance of the response, MAS has been working closely with the industry to finalise (i) the formats of the cover page and the bundled life policy document; (ii) the disclosure of net investment returns and total expense ratios for participating policies; and (iii) the disclosure of illustrated yield at maturity in relation to an endowment insurance product and illustrated yield upon surrender in relation to a whole life insurance product. In addition, we have renamed the ‘benefit illustration’ as ‘policy illustration’ to better reflect the objective of the document. 3 MAS Notices 302, 318, 320, and 322 and the Guideline ID 01/17 (“relevant Notices and Guideline) have been updated to include the additional disclosure requirements stated above. The amendments to the relevant Notices and Guideline will take effect on 2 July 2018. 4 If you have queries on this matter, please contact your company’s liaison officer in MAS. Yours faithfully [sent via MASNet] DANIEL WANG EXECUTIVE DIRECTOR INSURANCE DEPARTMENT