Speak English, please: MAS urges firms to use plain language in SGX prospectuses

The PHS requirement will be extended to more issuers.

Firms mulling to file prospectuses in the local bourse will soon have to do so in plain, easy-to-understand language.

New drafting guidelines proposed by the Monetary Authority of Singapore aim to encourage the use of plain English in prospectuses to help investors make more informed decisions.

The MAS’ product highlights sheet (PHS) will now be extended to debt securities, hybrid instruments and equity securities.

The MAS will revise the page limits to provide issuers and advisers with more flexibility in drafting the PHS. For offers of debt securities, the page limit for the PHS will be a flat limit of 12 pages where the offer is made in a prospectus, or 8 pages in a secondary offering by a listed issuer where the offer is made in an offer information statement.

For offers of hybrid instruments and equity securities, the page limit for the PHS will be a flat limit of 12 pages.