Statute Details
- Title: Financial Advisers (Structured Deposits — Prescribed Investment Product and Exemption) Regulations
- Act Code: FAA2001-RG7
- Legislative Type: Subsidiary legislation (SL)
- Authorising Act: Financial Advisers Act (Cap. 110), including sections 2(1) (definition of “investment product”), 100(1) and 104
- Current Status: Current version as at 27 Mar 2026
- Key Provisions (from extract):
- Section 2: Definitions (including “structured deposit”, “deposit”, “dual currency investment”, and related terms)
- Section 3: Prescribes structured deposits as “investment products” for the Financial Advisers Act
- Section 4: Provides exemptions for licensed/exempt financial advisers and their representatives from specified Financial Advisers Act requirements (with a carve-out for dual currency investments)
- Legislative History (high level): Amended by S 775/2005 (original), 2007 RevEd, S 718/2010, S 169/2020, and S 463/2021 (effective 1 July 2021)
What Is This Legislation About?
The Financial Advisers (Structured Deposits — Prescribed Investment Product and Exemption) Regulations (“Structured Deposits Regulations”) sit within Singapore’s broader Financial Advisers regulatory framework. In plain terms, the Regulations do two things: (1) they classify certain “structured deposits” as an “investment product” for the purposes of the Financial Advisers Act (Cap. 110) (“FAA”); and (2) they create a targeted exemption from some FAA compliance obligations for licensed financial advisers, exempt financial advisers, and their representatives when providing financial advisory services relating to those structured deposits.
The practical effect is to align regulatory treatment with how structured deposits function economically. Structured deposits can involve interest or principal outcomes linked to the performance of financial instruments or to credit events under credit derivatives, or they can be “dual currency” arrangements. The Regulations therefore define structured deposits carefully and then prescribe them as investment products—triggering the FAA’s investment-product framework—while simultaneously carving out certain advisory compliance requirements for specified categories of structured deposits.
Importantly, the exemption is not blanket. The Regulations distinguish between structured deposits that are not dual currency investments and dual currency investments. The exemption applies to advisory services relating to structured deposits (other than dual currency investments) that have been designated under the FAA’s “designated investment product” mechanism. Dual currency investments are treated differently and are excluded from the exemption.
What Are the Key Provisions?
1. Definitions and the scope of “structured deposit” (Section 2)
Section 2 provides the interpretive foundation. It defines key terms used to determine whether a product falls within the Regulations. The definitions are not merely academic; they determine whether a financial adviser’s conduct is regulated as advice on an “investment product” and whether the exemption in Section 4 is available.
The Regulations define “deposit” by reference to two banking-related statutes: deposits accepted by a bank (under the Banking Act) and deposits accepted by a finance company (under the Finance Companies Act). This matters because structured deposits are a subset of deposits, but they may embed market-linked or credit-linked features.
The core definition is “structured deposit”. It includes two broad categories:
- Market- or credit-linked deposits: deposits where any interest or premium is payable or at risk according to a formula based on (i) the performance of a financial instrument or specified products (as defined in the Securities and Futures Act), or (ii) the occurrence of a credit event in respect of a credit derivative, where the bank/finance company is a contracting party or where the bank/finance company would benefit or incur a loss; and
- Dual currency investments: deposits accepted in one currency and repayable in another currency.
By including both formula-based and dual currency structures, the Regulations ensure that “structured deposit” is economically comprehensive. However, the later exemption provision draws a line between dual currency investments and other structured deposits.
2. Prescribing structured deposits as “investment products” (Section 3)
Section 3 is the classification mechanism. It states that, for the purposes of the definition of “investment product” in Section 2(1) of the FAA, the Authority prescribes every structured deposit as an investment product.
This is a significant legal step. Once a product is prescribed as an investment product, the FAA’s regulatory architecture for investment-product advice becomes relevant. That architecture typically includes requirements relating to suitability, disclosure, conduct of business, and other obligations imposed on licensed financial advisers and exempt financial advisers (and their representatives). In other words, Section 3 ensures that structured deposits are not treated as ordinary deposits outside the FAA’s investment-product regime.
3. Exemption from specified FAA requirements (Section 4)
Section 4 provides a carefully tailored exemption. It applies to “any person who is”:
- a licensed financial adviser;
- an exempt financial adviser; or
- a representative of a licensed or exempt financial adviser.
These persons are exempted from complying with specified FAA provisions in relation to the provision of financial advisory services relating to structured deposits.
The exemption is limited to structured deposits other than a dual currency investment. It is also linked to the FAA’s “designated investment product” concept. Specifically, the exemption covers:
- Section 25 of the FAA (in relation to providing any financial advisory service relating to a structured deposit (other than a dual currency investment) which has been prescribed under Section 25(6) of the FAA as a designated investment product); and
- Sections 26 to 29 and 36 of the FAA (in relation to providing financial advisory services relating to structured deposits (other than a dual currency investment)).
Practitioner takeaway: the exemption is conditional. Even though Section 3 prescribes structured deposits as investment products, Section 4 may relieve advisers from certain FAA obligations when advising on particular structured deposits (excluding dual currency investments) that fall within the designated investment product framework for Section 25.
4. The dual currency carve-out
Section 4 expressly excludes “dual currency investment” from the exemption. This means that, for dual currency investments, licensed/exempt advisers and their representatives cannot rely on the exemption to avoid the relevant FAA compliance requirements. In practice, advisers should treat dual currency structured products as remaining fully within the FAA obligations that the exemption would otherwise reduce.
This carve-out is legally important because dual currency investments may raise different consumer-protection concerns (for example, currency risk and repayment currency mechanics). The Regulations therefore preserve stricter compliance for that category.
How Is This Legislation Structured?
The Regulations are concise and operate as a targeted “bridge” between the FAA’s general investment-product framework and the specific regulatory treatment of structured deposits. The structure, based on the extract and the listed provisions, is:
- Section 1 (Citation): provides the short title.
- Section 2 (Definitions): sets out interpretive definitions, including the meaning of “deposit”, “structured deposit”, “dual currency investment”, and related terms such as “credit derivative” and “credit event”.
- Section 3 (Prescribed investment product): prescribes all structured deposits as “investment products” for FAA purposes.
- Section 4 (Exemption): grants exemptions from specified FAA provisions for licensed/exempt advisers and their representatives, limited to structured deposits other than dual currency investments and (for Section 25) linked to the “designated investment product” prescription under the FAA.
Who Does This Legislation Apply To?
The Regulations apply to persons who provide financial advisory services in Singapore in relation to structured deposits that fall within the defined scope. The exemption in Section 4 is directed specifically at:
- licensed financial advisers;
- exempt financial advisers; and
- representatives of those advisers.
While the exemption is the most visible part of the Regulations, Section 3 has broader practical reach: by prescribing structured deposits as investment products, it affects how the FAA applies to advice on these products. Therefore, even where an exemption is available, advisers must still first determine whether the product is a “structured deposit” under Section 2 and whether it is a dual currency investment.
For dual currency investments, the exemption does not apply, so advisers should assume the relevant FAA obligations remain in force.
Why Is This Legislation Important?
This Regulations package is important because it clarifies the regulatory status of structured deposits—products that sit at the intersection of banking deposits and market-linked investment features. Without such clarification, there would be a risk that structured deposits could be treated inconsistently (for example, as ordinary deposits rather than investment products), undermining consumer protection and regulatory oversight.
From a compliance perspective, Section 3 ensures that structured deposits are within the FAA’s investment-product regime. From a business and operational perspective, Section 4 then provides relief from certain FAA requirements for specified structured deposits (excluding dual currency investments). This can affect how advisers design their advisory processes, documentation, disclosures, and suitability assessments.
For practitioners, the key compliance challenge is classification and conditionality:
- Classification: confirm whether the product is a “structured deposit” and whether it is a “dual currency investment”.
- Conditional exemption: for non-dual-currency structured deposits, assess whether the structured deposit has been prescribed as a “designated investment product” under the FAA for the purpose of the Section 25 exemption; and understand that Sections 26 to 29 and 36 are also exempted for such structured deposits.
Accordingly, advisers should not treat the exemption as automatic. Instead, they should maintain product-mapping controls and legal review steps to ensure that the exemption is applied only when the statutory conditions are met.
Related Legislation
- Financial Advisers Act (Cap. 110) (including sections 2(1), 25, 26–29, 36, 100(1), 104)
- Banking Act (Cap. 19) (definition of “bank” and deposit-related provisions referenced in Section 2)
- Finance Companies Act (Cap. 108) (definition of deposit accepted by finance companies referenced in Section 2)
- Securities and Futures Act (Cap. 289) (definition of “financial instrument” and “specified products” referenced in “structured deposit”)
Source Documents
This article provides an overview of the Financial Advisers (Structured Deposits — Prescribed Investment Product and Exemption) Regulations for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.