Alvin Tan on safeguards against risks in investment products of Capital Markets Services Licensees

Capital Markets Services Licensees offer portfolios which are invested into funds managed by other licensed funds management companies. These investment platforms are required by regulation to keep customers’ assets legally separate. The recent incident involving a surge in withdrawals from an investment platform illustrates that the safeguards worked as customers' assets were properly segregated from the platform and requests for withdrawals were redeemed in an orderly manner within the standard fund redemption timeframe of three to six working days. Monetary Authority of Singapore (MAS) Board Member Alvin Tan highlighted this in reply to parliamentary questions on Tuesday (Apr 8). He pointed out that there are regulatory requirements for robust risk management and clear disclosures. Mr Tan said MAS is reviewing this particular case against these requirements, as well as ensuring that investment platforms implement them effectively.