Amendments to the CIS regulations and regulatory treatment of closed-end funds

With effect from 1 July 2013, enhanced prospectus disclosure requirements apply for offers of units in collective investment schemes to the retail public and an information memorandum is required to be furnished to investors for an offer of units in a restricted scheme. Furthermore, all closed-end funds constituted on or after 1 July 2013 will be subject to the same regulatory regime as collective investment schemes.

The above changes follow the conclusion of the Monetary Authority of Singapore (MAS) public consultation 1 and are contained in the Securities and Futures (Offers of Investments) (Collective Investment Schemes) (Amendment) Regulations 2013 (CIS Amendment Regulations) which will come into operation on 1 July 2013 and the Securities and Futures (Closed-End Fund) (Excluded Arrangements) Notification 2013 Closed-End Fund Notification) which came into effect on 2 April 2013.

A summary of the CIS Amendment Regulations and regulatory treatment of closed-end funds, and what this means for investors is considered.