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
- Citation: G.N. No. S 775/2005
- Revised Edition: 2007 RevEd (2 July 2007)
- Key Provisions (from extract): Section 2 (definitions); Section 3 (prescribed investment product); Section 4 (exemption)
- Status: Current version as at 27 Mar 2026
- Noted Amendments: S 463/2021 (w.e.f. 1 Jul 2021); S 169/2020 (w.e.f. 16 Mar 2020); S 718/2010 (w.e.f. 26 Nov 2010)
What Is This Legislation About?
The Financial Advisers (Structured Deposits — Prescribed Investment Product and Exemption) Regulations (“the Regulations”) sit within Singapore’s broader Financial Advisers regulatory framework. In plain terms, they address how “structured deposits” are treated when financial advisers provide advice or services in relation to them. The Regulations do two main things: (1) they classify structured deposits as “investment products” for the purposes of the Financial Advisers Act (Cap. 110) (“the Act”); and (2) they create a targeted exemption from certain statutory requirements for specified categories of financial advisers when advising on structured deposits.
Structured deposits are a hybrid product category: they are deposits accepted by banks or finance companies, but the interest/premium (or the risk to principal) is linked to a formula tied to market performance (e.g., specified financial instruments) or to credit events under credit derivatives. Because these products can behave economically like investment products—despite being “deposits”— regulators need to ensure that the advice and conduct framework applies appropriately.
At the same time, the Regulations recognise that not all structured deposits raise the same regulatory concerns. Notably, the exemption in section 4 is limited: it applies to structured deposits “other than a dual currency investment.” Dual currency investments are carved out of the exemption, meaning that advisers may remain subject to the relevant provisions of the Act when advising on those products.
What Are the Key Provisions?
1) Definitions and product characterisation (Section 2)
Section 2 is foundational. It defines key terms used throughout the Regulations, including “bank,” “merchant bank,” “deposit,” “dual currency investment,” “credit derivative,” and “credit event.” These definitions ensure that the structured deposit concept is anchored to the regulatory definitions in the Banking Act (Cap. 19) and the Finance Companies Act (Cap. 108), and that the credit-derivative linkage is understood consistently with financial contract terminology.
The most important definition is “structured deposit.” In summary, a structured deposit includes:
- Deposits where interest or premium is payable or at risk according to a formula based on:
- the performance of any financial instrument or specified products under the Securities and Futures Act (Cap. 289); or
- the occurrence of a credit event under a credit derivative, where the bank/finance company is a contracting party or would otherwise benefit or incur a loss; and
- Dual currency investments (explicitly included in the definition).
This definition is deliberately broad. It captures both market-linked structured deposits and credit-event-linked structured deposits, and it also includes dual currency investments as a distinct sub-category within the “structured deposit” umbrella.
2) Structured deposits are “prescribed investment products” (Section 3)
Section 3 provides the regulatory classification effect. It states that, for the purposes of the definition of “investment product” in section 2(1) of the Act, the Authority prescribes “every structured deposit” as an investment product.
Practically, this means that when a financial adviser provides advice or financial advisory services relating to a structured deposit, the product is treated as an investment product under the Act’s framework. This classification matters because the Act’s obligations—such as licensing, conduct requirements, disclosure duties, and suitability-related requirements—often hinge on whether the subject matter is an “investment product.”
For practitioners, section 3 is the “hook” that brings structured deposits within the Act’s conceptual scope, even though the underlying instrument is a deposit accepted by a bank or finance company.
3) Targeted exemptions for certain advisers (Section 4)
Section 4 is the second major pillar. It exempts certain persons from specified compliance obligations under the Act when they provide financial advisory services relating to structured deposits—again, with an important limitation.
The exempted persons are:
- licensed financial advisers;
- exempt financial advisers; and
- representatives of a licensed or exempt financial adviser.
The exemption applies to compliance with:
- Section 25 of the Act, but only “in relation to the provision of any financial advisory service relating to any structured deposit (other than a dual currency investment)” that has been prescribed under section 25(6) (definition of “designated investment product”) of the Act as a designated investment product; and
- Sections 26 to 29 and 36 of the Act, again “in relation to the provision of any financial advisory service relating to any structured deposit (other than a dual currency investment).”
In plain language, section 4 reduces the regulatory burden for eligible advisers when advising on certain structured deposits (excluding dual currency investments). The exemption is not a blanket removal of all obligations under the Act; it is a specific carve-out from particular sections.
Dual currency investment carve-out: The phrase “other than a dual currency investment” is critical. Because “dual currency investment” is included within the definition of “structured deposit,” the exemption’s limitation means that advisers advising on dual currency investments do not benefit from the exemption and must comply with the relevant Act provisions that would otherwise be waived.
4) Interaction with “designated investment product” (Section 4(i))
Section 4(i) refers to structured deposits that have been prescribed under section 25(6) of the Act as “designated investment product.” This indicates that the exemption from section 25 is conditional not only on the product being a structured deposit (and not a dual currency investment), but also on the structured deposit meeting the Act’s “designated” prescription.
For legal and compliance teams, this means you cannot assume the exemption applies to all structured deposits in all circumstances. The product must be within the designated investment product category under the Act’s separate prescription mechanism. This is a classic example of a cross-reference that practitioners must operationalise through product mapping and regulatory registers.
How Is This Legislation Structured?
The Regulations are short and functional, consisting of:
- Section 1 (Citation): Provides the short title.
- Section 2 (Definitions): Sets out key terms, including the detailed definition of “structured deposit,” and supporting definitions for banks, deposits, credit derivatives, and credit events.
- Section 3 (Prescribed investment product): Prescribes every structured deposit as an “investment product” for the Act.
- Section 4 (Exemption): Creates a conditional exemption from specified sections of the Act for licensed/exempt financial advisers and their representatives, limited to structured deposits other than dual currency investments, and (for section 25) further limited to designated investment products.
Although the extract shows only these provisions, the legislative design is clear: the Regulations first define and classify the product, then prescribe the regulatory consequences (investment product status) and finally carve out a limited exemption (with a dual currency investment exclusion).
Who Does This Legislation Apply To?
The Regulations apply to persons involved in providing financial advisory services in Singapore in relation to structured deposits. The exemption in section 4 is specifically directed at:
- licensed financial advisers;
- exempt financial advisers; and
- their representatives.
Even though section 3 applies broadly by prescribing “every structured deposit” as an investment product, the practical compliance relief in section 4 is limited to the categories above. In other words, the classification affects the regulatory context for advice, while the exemption affects whether certain Act provisions must be complied with for specified structured deposits.
Additionally, the exemption is product-specific. It does not extend to advice relating to dual currency investments. Therefore, advisers and their compliance functions must distinguish between structured deposits that are dual currency investments and those that are not, even though both are “structured deposits” under the Regulations’ definition.
Why Is This Legislation Important?
For practitioners, the Regulations are important because they determine how structured deposits are regulated when they are the subject of financial advice. Section 3 ensures that structured deposits are treated as “investment products” under the Act. This classification can affect licensing scope, conduct obligations, and how advice is documented and disclosed.
At the same time, section 4 provides a targeted compliance relief. This can be significant for advisers who handle structured deposits that fall within the exemption. However, the relief is carefully bounded: it excludes dual currency investments and, for the exemption from section 25, it depends on whether the structured deposit is prescribed as a “designated investment product” under section 25(6) of the Act.
From an enforcement and risk perspective, the cross-references and carve-outs mean that compliance failures are likely to arise from product misclassification (e.g., treating a dual currency investment as eligible for the exemption) or from failing to confirm that the relevant structured deposit is designated under the Act. Accordingly, legal practitioners should advise clients to implement robust product governance: maintain an up-to-date inventory of structured deposit offerings, map each product to the regulatory category (structured deposit; dual currency investment or not; designated investment product or not), and align advisory workflows and disclosures with the resulting obligations.
Related Legislation
- Financial Advisers Act (Cap. 110) (including sections 2(1), 25, 26–29, 36, 100(1), 104)
- Banking Act (Cap. 19) (definitions relevant to “bank” and “deposit”)
- Finance Companies Act (Cap. 108) (definitions relevant to deposits accepted by finance companies)
- Securities and Futures Act (Cap. 289) (definition of “financial instrument” and “specified products” used in the structured deposit formula)
- Futures Act (listed in the metadata; relevant context for the broader regulatory ecosystem)
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.