Statute Details
- Title: Securities and Futures (Collective Investment Scheme) (Excluded Arrangements) Notification 2018
- Act Code: SFA2001-S853-2018
- Type: Subsidiary Legislation (SL)
- Authorising Act: Securities and Futures Act (Cap. 289)
- Enacting Authority: Monetary Authority of Singapore (MAS)
- Citation: No. S 853
- Commencement: 25 December 2018
- Key Provision: Section 2 (Excluded arrangements)
- Legislative Hook: Paragraph (xii) of the definition of “collective investment scheme” in section 2(1) of the Securities and Futures Act
- Current Version Reference: Current version as at 27 Mar 2026 (per provided metadata)
What Is This Legislation About?
The Securities and Futures (Collective Investment Scheme) (Excluded Arrangements) Notification 2018 is a short but practically significant piece of Singapore financial regulation. Its core function is to identify certain arrangements that, although they may involve pooled or investment-like features, are not treated as “collective investment schemes” (CIS) for the purposes of the Securities and Futures Act (SFA).
In plain language, the Notification draws boundaries around what counts as a CIS. This matters because CISs are subject to a distinct regulatory regime under the SFA—typically involving licensing, authorisation, prospectus requirements, and ongoing compliance obligations. By excluding specific categories of arrangements, the Notification reduces regulatory uncertainty and prevents the CIS framework from being applied to transactions that the regulator considers appropriately regulated under other parts of the SFA or under different market practices.
The Notification is made by MAS using powers conferred by paragraph (xii) of the definition of “collective investment scheme” in section 2(1) of the SFA. That definition is the gateway: if an arrangement falls within the definition, it may trigger CIS regulation. If it is excluded by a valid notification made under the definition, it will not be treated as a CIS—even if it resembles one in some commercial sense.
What Are the Key Provisions?
Section 1: Citation and commencement provides the formal identity and effective date of the Notification. It is cited as the “Securities and Futures (Collective Investment Scheme) (Excluded Arrangements) Notification 2018” and comes into operation on 25 December 2018. For practitioners, the commencement date is relevant when assessing whether a transaction structured before that date could be caught by the CIS regime, and whether later amendments to the regulatory landscape affect ongoing offerings or existing arrangements.
Section 2: Excluded arrangements is the substantive provision. It states that, for the purposes of paragraph (xii) of the CIS definition in section 2(1) of the SFA, each of the listed arrangements is not a collective investment scheme. The Notification contains two exclusions:
(a) A securitisation transaction
The Notification excludes “a securitisation transaction” from the CIS definition. The term is given its meaning by section 262(3) of the Act. This cross-reference is important: it means the exclusion is not based on a generic understanding of securitisation, but on the statutory definition in the SFA. Practitioners should therefore analyse the transaction against the elements of section 262(3) rather than relying solely on market terminology.
(b) An arrangement that consists only of an issuance of structured notes
The Notification also excludes an arrangement that consists only of the issuance of “structured notes”. The term “structured notes” is defined by section 240AA(5) of the Act. The “consists only” qualifier is a key drafting point. It suggests that if the arrangement includes additional features beyond a pure issuance of structured notes—such as additional pooling mechanisms or other contractual arrangements that could be argued to create a CIS—then the exclusion may not apply. Lawyers should therefore map the full transaction documentation and commercial substance to the statutory concept of “structured notes” and confirm that no other element pushes the arrangement into CIS territory.
Interplay with the CIS definition
Although the Notification itself is brief, its legal effect depends on the CIS definition in the SFA. Paragraph (xii) of that definition empowers MAS to exclude certain arrangements by notification. The Notification therefore operates as a targeted carve-out mechanism. In practice, it provides a regulatory “safe harbour” for the specified categories, subject to strict compliance with the statutory meanings of “securitisation transaction” and “structured notes”.
Practical compliance takeaway
From a practitioner’s perspective, the key work is classification. The Notification does not regulate securitisation transactions or structured notes directly; instead, it determines whether they fall outside the CIS regime. Accordingly, legal teams should perform a structured legal assessment: (i) identify whether the arrangement is a securitisation transaction as defined in section 262(3), or (ii) whether it is an issuance-only arrangement of structured notes as defined in section 240AA(5). If either exclusion applies, the arrangement should not be treated as a CIS for SFA purposes.
How Is This Legislation Structured?
The Notification is structured as a short instrument with an enacting formula and two operative sections:
Section 1 (Citation and commencement) sets the name and effective date.
Section 2 (Excluded arrangements) lists the arrangements that are excluded from the CIS definition for the purposes of paragraph (xii) of the CIS definition in section 2(1) of the SFA. Section 2(2) provides interpretive definitions by reference to other provisions in the SFA—specifically, section 262(3) for “securitisation transaction” and section 240AA(5) for “structured notes”.
There are no schedules or detailed procedural requirements in the Notification itself. Its legal “weight” comes from its placement within the CIS definition framework and the statutory cross-references that anchor the exclusions to defined terms in the SFA.
Who Does This Legislation Apply To?
This Notification applies to market participants and transaction structures that may otherwise be argued to fall within the SFA’s definition of “collective investment scheme”. That includes, in practice, issuers, arrangers, sponsors, trustees or special purpose vehicles involved in securitisation, and financial institutions issuing structured notes.
However, the Notification does not impose obligations directly on these parties in the way that a licensing or conduct provision would. Instead, it affects regulatory classification. The parties must apply the exclusion when determining whether the CIS regime is triggered. If the transaction fits within the excluded categories, the CIS-specific regulatory requirements should not apply. If it does not, the parties must consider the general CIS framework under the SFA.
Why Is This Legislation Important?
Although the Notification is only two sections long, it is important because CIS regulation can be extensive and costly. A CIS determination can affect whether an offering requires authorisation, whether marketing materials must comply with prospectus or disclosure rules, and whether ongoing governance and custody requirements apply. By excluding securitisation transactions and issuance-only structured notes, MAS reduces the risk of over-regulation and ensures that these products are treated consistently with the regulatory logic of the SFA.
From an enforcement and supervisory perspective, classification clarity also helps MAS focus regulatory resources on arrangements that truly warrant CIS oversight. Securitisation and structured notes are typically governed by other SFA provisions and market conduct frameworks. The Notification therefore supports a coherent regulatory taxonomy: not every investment-like product should be treated as a CIS, particularly where the product is already subject to a more tailored regulatory approach.
For practitioners advising on transaction structuring, the Notification is a drafting and documentation guide. The “consists only” language for structured notes is a particular point of attention. Lawyers should scrutinise whether the arrangement includes any additional pooling, participation, or contractual features that could be characterised as going beyond a straightforward structured note issuance. Similarly, for securitisation, the statutory definition in section 262(3) should be used as the benchmark for analysis. In both cases, the exclusion is likely to be applied narrowly, consistent with how statutory carve-outs are typically interpreted.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular:
- Section 2(1) (definition of “collective investment scheme”), including paragraph (xii)
- Section 262(3) (definition of “securitisation transaction”)
- Section 240AA(5) (definition of “structured notes”)
- Futures Act (referenced in provided metadata as related legislation; relevance depends on the transaction context)
- Legislation Timeline / MAS Legislation Database (for version control and amendments tracking)
Source Documents
This article provides an overview of the Securities and Futures (Collective Investment Scheme) (Excluded Arrangements) Notification 2018 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.