Statute Details
- Title: Securities and Futures (Modification of Definition of “Securities” in Section 81SF of Act) Regulations 2018
- Act Code: SFA2001-S626-2018
- Legislative Instrument Type: Subsidiary Legislation (SL)
- Number: S 626/2018
- Authorising Act: Securities and Futures Act (Cap. 289) (“SFA”)
- Authorising Provision: Section 81SU(1)(i) of the SFA
- Enacting Authority: Monetary Authority of Singapore (MAS)
- Date Made: 26 September 2018
- Date of Commencement: 8 October 2018
- Status: Current version as at 27 March 2026
- Key Operative Provisions: Regulations 1–2 (Citation/commencement; modification of definition)
What Is This Legislation About?
The Securities and Futures (Modification of Definition of “Securities” in Section 81SF of Act) Regulations 2018 (“SFA Modification Regulations 2018”) is a short but targeted piece of subsidiary legislation. Its central purpose is to amend how the term “securities” is defined for the specific context of section 81SF of the Securities and Futures Act (Cap. 289) (“SFA”).
In plain language, the Regulations ensure that certain financial products—namely (i) units in a collective investment scheme and (ii) derivatives contracts—are treated as “securities” for the operation of section 81SF. This matters because the SFA uses defined terms to determine regulatory obligations, compliance requirements, and the reach of statutory controls.
Although the Regulations are brief (only two operative provisions), they can have significant practical effects. By modifying a definition within the SFA, MAS effectively expands the category of instruments that fall within the regulatory framework triggered by section 81SF. For practitioners, the key is not the length of the instrument, but the legal consequences that flow from the modified definition.
What Are the Key Provisions?
Regulation 1 (Citation and commencement) provides the formal title and the date the Regulations come into force. The Regulations are cited as the “Securities and Futures (Modification of Definition of ‘Securities’ in Section 81SF of Act) Regulations 2018” and they commence on 8 October 2018. For compliance planning, this commencement date is important because it determines when the modified definition becomes legally effective.
Regulation 2 (Modification of definition of “securities” in section 81SF of Act) is the operative core. It states that the definition of “securities” in section 81SF of the SFA is modified to include two categories of instruments:
(a) any unit in a collective investment scheme, and
(b) any derivatives contract.
In effect, Regulation 2 expands the scope of “securities” for the purposes of section 81SF. The legal significance is that section 81SF will treat these instruments as “securities” even if, under the baseline definition elsewhere in the SFA, they might not have been captured in the same way. The Regulations therefore operate as a definitional “bridge” between the SFA’s general regulatory architecture and the specific obligations or prohibitions contained in section 81SF.
From a practitioner’s perspective, the most important interpretive point is that this is a modification of a definition within a particular section, not a wholesale amendment to the SFA’s general definition of “securities” across the entire Act. That means the modified meaning is tied to the operation of section 81SF. When advising on compliance, enforcement risk, or the classification of instruments, counsel should focus on how section 81SF is triggered and what consequences attach to “securities” under that provision.
Another practical consideration is product classification. The Regulations expressly refer to (i) “units in a collective investment scheme” and (ii) “derivatives contract.” These terms are typically defined or elaborated elsewhere in Singapore financial legislation and regulatory guidance. Accordingly, determining whether a particular instrument is a “unit” in a collective investment scheme or a “derivatives contract” may require careful legal analysis of the instrument’s structure, contractual terms, and economic substance.
How Is This Legislation Structured?
The Regulations are structured in a simple, two-regulation format:
Regulation 1 sets out the citation and commencement date.
Regulation 2 modifies the definition of “securities” in section 81SF of the SFA by expressly including (a) units in a collective investment scheme and (b) derivatives contracts.
There are no additional Parts, schedules, or detailed procedural provisions in the text provided. The instrument is therefore best understood as a targeted definitional amendment rather than a comprehensive regulatory regime.
Who Does This Legislation Apply To?
Because the Regulations modify the definition of “securities” within section 81SF of the SFA, the practical “who” depends on how section 81SF operates. In general terms, the SFA’s securities and futures framework regulates market conduct and the offering, dealing, and management of financial products, as well as licensing and compliance obligations for persons carrying on regulated activities.
Accordingly, the Regulations are relevant to market participants such as financial institutions, fund managers, collective investment scheme operators, intermediaries, and other persons whose activities involve instruments that may fall within the modified definition. If a person’s conduct is assessed under section 81SF using the term “securities,” then the expanded definition in these Regulations can broaden the range of products that trigger statutory requirements.
For example, where a compliance analysis under section 81SF turns on whether an instrument is a “security,” the Regulations require counsel to treat units in a collective investment scheme and derivatives contracts as “securities” for that purpose. This can affect advice on regulatory classification, disclosure obligations, marketing and distribution constraints, and potential enforcement exposure.
Why Is This Legislation Important?
Even though the SFA Modification Regulations 2018 are concise, they are legally important because they change the definitional foundation for section 81SF. Definitions in financial regulation are not merely academic; they determine whether a product or activity is within the regulatory perimeter. By including collective investment scheme units and derivatives contracts, MAS has ensured that these instruments are captured within the “securities” concept used by section 81SF.
From an enforcement and compliance standpoint, the Regulations reduce ambiguity. Without the modification, there could be arguments about whether certain instruments—particularly derivatives contracts—fall within “securities” for the specific section 81SF. The Regulations remove that uncertainty by expressly including the two categories. This is particularly significant in regulated environments where classification affects licensing, conduct requirements, and the applicability of statutory prohibitions or duties.
For practitioners, the key practical impact is that product classification must be revisited when advising on matters governed by section 81SF. Counsel should not assume that the general meaning of “securities” under the SFA automatically applies in the same way to every section. Instead, the correct approach is to read the relevant section (section 81SF) together with the definitional modifications introduced by subsidiary legislation.
Finally, the Regulations illustrate a broader regulatory technique used in Singapore financial law: MAS may use subsidiary legislation to adjust definitions within the SFA to reflect evolving market structures and regulatory priorities. For lawyers, this underscores the importance of checking not only the main Act but also the relevant subsidiary instruments that modify definitions for particular provisions.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular section 81SF and the authorising power in section 81SU(1)(i)
- Futures Act — referenced in the provided metadata as related legislation (contextual relevance may depend on how derivatives are treated across the legislative framework)
- Legislation Timeline / MAS subsidiary legislation instruments — for locating the correct version and any subsequent amendments (if any)
Source Documents
This article provides an overview of the Securities and Futures (Modification of Definition of “Securities” in Section 81SF of Act) Regulations 2018 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.