What are “Specified Investment Products”?

As an investor, you have access to a wide range of products with varied features and risk exposures listed on the Singapore Exchange (SGX). Some products may have terms and features that are not as well known and widely understood as others. These products are referred to as “Specified Investment Products”.

Some SIPs are listed on an exchange, and others are not.

Examples of SIPs listed on an exchange	Examples of SIPs that are not listed on an exchange
*Certain exchange traded funds and notes Structured warrants Futures Certificates	Structured notes (e.g equity-linked structured notes, credit- linked structured notes) * Certain unit trusts * Certain Investment-linked life insurance policies

The current list of Specified Investment Products on SGX securities market includes:-

Certificates
Exchange Traded Funds (ETFs)
Exchange Traded Notes (ETNs)
Futures (Exended Settlement contracts)
Structured Warrants
Callable Bull / Bear Contracts (CBBCs) (CBBC has yet to be launched.)

Specified Investment Products listed on SGX derivatives market include:-

Futures
Options

With effect from 1st January 2012, the Monetary Authority of Singapore (MAS) requires all financial institutions to ascertain whether their clients possess the necessary knowledge or experience on the features and risks of the products that they intend to trade through the prescribed Customer Knowledge Assessment (CKA) or Customer Account Review (CAR).

For more information, you can refer to MoneySense website “Investing in Specified Investment Products: A quick guide for retail investors“.

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About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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