An announcement at an industry event in March 2013 indicated that the Monetary Authority of Singapore (MAS) will conduct a review of product offerings to retail customers in the banking, insurance and capital markets industries. The review will cover three aspects:

  • significant product gaps in the market;
  • the existence of inherently unsuitable products for retail distribution; and
  • whether products are efficiently created.

The review will concentrate on costs, i.e., ensuring that fixed costs such as fund management fees are adequately disclosed and open to competition. For expenses that may vary over time, the MAS advocates clarification so that these costs can be appropriately managed. We understand the MAS will be working with the industry to review these questions, although a full consultation paper has yet to be published.