On 8 October 2018, MAS published amended versions of Securities and Futures Act (Chapter 289) (the "SFA"), Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 (the "SFR"), Securities and Futures (Classes of investors) Regulations 2018  and Practitioner's Guide to the Collective Investment Schemes Regime under the Securities and Futures Act (Cap.289).

As a result, the CISNet online platform has been updated with regards to foreign funds which are authorised as Restricted Schemes, to include additional information regarding the offering of such schemes.

Fund managers are now required  to confirm whether the Restricted Scheme is only offered to 'accredited' investors or to 'accredited' and 'institutional' investors (defined in Section 304 of SFA); or if it is also offered to other investors under Section 305(2) of SFA (i.e. persons who acquire the shares/units as principal if the shares/units may only be acquired at a consideration of not less than SG$200,000 (or its foreign currency equivalent) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or other assets).

In circumstances where the Restricted Scheme is reserved for institutional and/or accredited investors, the fund manager will also have to inform the MAS about the investment strategy of the Scheme.  Where investments are made solely in non-capital market products, as regulated by the amended SFR, MAS will have to be notified.

As mentioned in our recent Quarterly Market Update, the accredited investor definition was also recently revised by MAS following which each eligible accredited investor is required to opt-in for the Accredited Investor status. If an eligible accredited investor chooses not to opt-in, he/she will be treated as a retail investor.  The opt-in regime and the process to obtain consent from an eligible person to be treated as an accredited investor are regulated by the Securities and Futures (Classes of Investors) Regulations 2018, which come into force on 8 January 2019.