Regulatory Alerts2021-06-28
Added · Updated
Notice on Dual Currency Investments
The Monetary Authority of Singapore prohibits financial advisers and their representatives from using the terms "deposit" or "structured deposit" when marketing or describing dual currency investments to clients who are not accredited, expert, or institutional investors. Advisers must provide fair and adequate disclosure of material information, including the nature of the currency option, potential principal loss due to exchange rate fluctuations, minimum investment amounts, and early withdrawal or termination conditions. Specific risk warnings regarding the issuer's right to repay in an alternate currency and exposure to foreign exchange fluctuations must be included in all marketing materials and product disclosure documents. These requirements apply to licensed or exempt financial advisers and take effect on 1 March 2006, with amendments effective from 1 July 2021.