MAS consults on proposed amendments to Code on Collective Investment Schemes to facilitate faster approvals of new fund types

3 August 2026

On 9 July 2026, the Monetary Authority of Singapore (“MAS”) published a consultation paper seeking feedback on proposed amendments to the Code on Collective Investment Schemes (“CIS Code”). The proposed amendments seek to enable a wider range of new fund product types to be authorised for retail offer through a more streamlined process, while ensuring that appropriate safeguards are in place for retail investors. The consultation closes on 10 August 2026.

As investor sophistication grows in Singapore and investor needs continue to evolve, MAS has received interest from the industry to offer new retail fund product types that cater to a broader range of investment objectives. However, these fund types may not comply with existing investment requirements under Appendix 1 of the CIS Code, such as diversification requirements, and therefore cannot currently be offered to retail investors.

To facilitate fund product innovation, MAS proposes to introduce greater flexibility in the CIS Code to accommodate new fund product types for retail offer by introducing a new Appendix to cater to new fund types that satisfy certain criteria (“Alternative Funds Appendix”). These new fund types may involve the heavy use of derivatives and/or have undiversified exposures, which some investors may seek as part of a broader, diversified portfolio. Under the Alternative Funds Appendix, these new fund types may be permitted to deviate from the investment requirements within Appendix 1 of the CIS Code, while being subject to alternative safeguards.

Considerations in admitting new fund types

In determining whether to allow a new fund type to deviate from investment requirements, MAS will consider the following key factors:

  • The fund’s compliance with the International Organization of Securities Commissions (IOSCO) principles, as encapsulated by legislative requirements in the Securities and Futures Act 2001 and Chapters of the CIS Code, which include having sufficiently liquid assets to facilitate fund redemptions;
  • The listing or offer history of similar products in other jurisdictions; and
  • The proposed safeguards, such as product-level safeguards, enhanced disclosures, and distribution safeguards, to mitigate the risks arising from the novel or new structure, risk, or investment policy, and deviation from the existing CIS Code investment requirements

(collectively, “Key Factors”).

Safeguards

Where MAS decides that it is appropriate to allow for a new alternative fund type to be authorised for retail offer, such a fund type will be allowed through a circular issued under the proposed Alternative Funds Appendix.

The circular will set out the modified investment requirements, along with alternative safeguards and enhanced disclosures for that specific fund type. The fund must still comply with all key fundamental requirements contained in the Chapters of the CIS Code.

Funds authorised under the Alternative Funds Appendix will be required to carry a clear and prominent statement in their prospectuses, product highlights sheets, and marketing materials relating to the fund that states that the fund is offered under the Alternative Funds Appendix as an alternative fund. This is to ensure that investors can readily distinguish them from traditional funds that comply with the existing investment requirements in Appendix 1 of the CIS Code.

MAS expects fund managers and distributors to deliver fair dealing outcomes in the design and distribution of fund products to retail investors. For new fund types that are classified as complex products, distribution safeguards under the complex products regime will also apply accordingly.

Approval process for new fund types

Issuers should consult with MAS on new fund types that they wish to offer to retail investors before applying for authorisation of the fund. To facilitate a comprehensive assessment, issuers will be required to submit information on the scheme and information on similar schemes in other jurisdictions, if applicable.

MAS expects to be able to design the alternative set of requirements for most new fund types in approximately three months. To provide market clarity and transparency on the applicable safeguards for future interested issuers, MAS will publish these requirements in a circular. Once the guardrails are established, funds of the same type will take 21 days to be authorised if they fulfil the requirements.

Related enhancements to the CIS Code

MAS proposes to amend the CIS Code to provide flexibility for future possible amendments to investment requirements in the existing Appendices of the CIS Code. This flexibility will not be extended to the key fundamental requirements set out in the Chapters of the CIS Code.

MAS will only permit such future possible amendments if the Key Factors are fulfilled. In addition, any amendments to investment requirements will be made in a manner that seeks to ensure that safeguards on fund investments, such as risk limits and disclosures, remain adequate. Once amendments are made, the revised investment requirements would apply to all authorised funds.

For consistency, MAS will also recognise foreign funds that are comparable to new fund products that are authorised by MAS, including those under the proposed Alternative Funds Appendix.

Examples of new fund products

MAS has received market interest to offer two new fund types to retail investors, namely (i) futures-based single-commodity funds; and (ii) a wider array of single-country government bond funds. The consultation paper provides, as examples, the set of investment requirements and alternative safeguards that MAS intends to apply to these two new fund types.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

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