SGX steps up product disclosure

The changes to the listing manual are in line with MAS’ initiative to improve disclosure with the use of product highlight sheets.

Singapore Exchange (“SGX”) introduces new product disclosure templates to enhance the readability of term sheets for structured warrants, debentures and funds. SGX is of the view that consistent presentation of product features and risks will facilitate clear and efficient comparison of competing product offerings by market participants, according to an SGX report.

These disclosure templates will apply to the term sheets for:-

• Debentures in the form of asset-backed securities, exchange traded notes and structured notes;
• Funds (including collective investment schemes and exchange traded funds); and
• Structured warrants.

Issuers are required to apply the guidelines and term sheet formats with effect from 1 August 2011.

With these two practice notes, issuers making an offer that is not accompanied by a Monetary Authority of Singapore (MAS)-registered prospectus are now able to make clearer disclosure of product features and risks in standardised formats.