In a parliamentary response, Monetary Authority of Singapore (MAS) Chairman and Deputy Prime Minister Gan Kim Yong outlined plans to introduce shortly a Product Highlights Sheet (PHS) tailored to investment-linked policies (ILPs). The sheet will standardise disclosure of key features, risks, fees and charges to help customers assess overall costs, benefits and suitability beyond promotional incentives. This follows MAS’ May 2026 decision to require a PHS for ILPs and classify them as complex products. Implementation work with industry is under way. Existing policy illustrations already show projected surrender values and the cumulative effect of deductions throughout the policy term, including beyond the minimum premium commitment period. Illustrated net surrender benefits reflect premiums paid to date and assumed returns, accounting for contractual bonuses and all relevant fees and charges. Financial institutions and their representatives must explain the illustrated benefits and costs, including conditions under which promotional incentives may be forfeited or clawed back. Early surrender losses can outweigh those incentives. Product suitability assessments should consider customers’ needs and financial circumstances alongside the policy’s features, costs and risks, without promotional bonuses overshadowing these considerations.
MAS updates plans for investment-linked policy disclosure sheets and reiterates rules on promotional bonuses
In a parliamentary response, Monetary Authority of Singapore Chairman and Deputy Prime Minister Gan Kim Yong outlined preparations to introduce standardised disclosure sheets for investment-linked policies, following the authority’s May 2026 decision. Existing illustrations already account for contractual bonuses, fees and charges when projecting surrender benefits. Institutions must explain incentive forfeiture and clawback conditions, as early surrender losses can outweigh promotional bonuses.