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Chap 8: More Notices - Coggle Diagram
Chap 8: More Notices
Notice 307
Related to ILP
ILP
Insurance plus investment component
Collective Investment Scheme (CIS)
Unit holders
Trustee
Fund manager
Disclosure of past performance
Calculated on
offer to bid
basis
Revised scheme
Provide greater clarity and
increase flexbility
for fund managers
Enhance safeguards for
retail investors
Mandatory requirement
Notify MAS
Launch of new sub-fund
Give MAS
21 days notice
PHS, product summary, benefits illustration
Significant changes
Increase in renumeration
payable to insurer/manager
Change in investment objective of ILP
Increase in
misc fees
that are
0.1% or more
of NAV
Change in manager of sub-fund
Unit valuation
NAV/outstanding units
Audit of ILP Sub funds
Internal control/processes
Completed not more than
3 months
after ILP year end
Period under review
not less than 12 mths
Subsequent audit not later than next
financial year end of insurer
Matured
Insurer to appoint external auditor
Financial statements of ILP
Disclosure to unit holders
Semi-annual report:
2 mths
Relavant audit report:
3 mths
Statement to policyholders:
30 days of anniversary
Advertisements
Payments from ILP sub-fund
Cannot be used for
CPF failed trades
Marketing or promotion expenses
Can be used for
Non-mandatory requirements
Payment of redemption proceeds
Bond/Money-market ILPs:
T + 4
CIS ILPs:
T + 7
Credit ratings
Use own internal credit assessment
In event of discrepancy take the lowest
Valuation of fund assets
Frequency of valuation
Every business day
At least once a month
At least
once a year
if property fund
Valuation errors
Compensation if: error more
than
0.5%
of NAV per unit
Performance fee
Once a year
Fulcrum fee
Proportionate to fund performance relative to one benchmark
High watermark
Management fee
watermark × management fee
Performance fee
awarded if performance beats
high watermark and benchmark
Breaches
MAS must be notified within
3 business days
Sub-Managed
If
more than 10%
managed abroad
Insurer should manage
at least
$500 million
in SG
MAS considers if
sub-manager is reputable
and supervised appropriately
Concentration
Financial derivatives:
Should not exceed
100%
Not more than
10% of outstanding shares
in single entity
Legibility
Product Highlights Sheet
Refrain from including
disclaimers in PHS
Clear simple language, with glossary PHS
to explain technical jargon
Diagrams such as graphs or charts
Minimum font size of 10 points Times New Roman
4 pages w/o diagrams, 8 pages with
Notice 302
Considerations u shld have when developing new product
Mandatory requirements
Prudent management oversight
Board of Directors approves policies and
procedures for development and pricing
Prohibited Payout Features
Providing settlement option
Disclosure of settlement option
What
Money payable not covered under PPF scheme
When
Before 1 Oct 2013
On or after 1 Oct 2013
Approval for new product
Approval needed
Approval needed from MAS
at least 1 month before
Approval not needed
Notifying MAS within
7 working days of launch
Not applicable to
Short-term accident or health policy
Term policy of
5 years or less
Direct purchase insurance product