MAS proposes amendments to requirements for preparation of financial statements and reports under Code on Collective Investment Schemes

27 September 2024

On 15 August 2024, the Monetary Authority of Singapore (“MAS”) published a consultation paper on proposed amendments to the requirements for preparation of financial statements and reports under the Code on Collective Investment Schemes (“CIS Code”). The consultation closed on 14 September 2024. 

Under the CIS Code, the manager of an authorised collective investment scheme (“Authorised Scheme”) is required to prepare the financial statements relating to the scheme in the manner prescribed by the Statement of Recommended Accounting Practice 7: Reporting Framework for Investment Funds (“RAP 7”) issued by the Institute of Singapore Chartered Accountants (“ISCA”). 

MAS proposes to amend this requirement for the preparation of financial statements and reports under the CIS Code. To promote better comparability of financial statements of Authorised Schemes with those of other major fund jurisdictions and across different types of capital market issuers in Singapore, MAS proposes that financial statements relating to an Authorised Scheme be prepared in accordance with the Singapore Financial Reporting Standards (International) (“SFRS(I)”) instead of RAP 7. 

MAS also intends to retain certain disclosures required by RAP 7 but not required by SFRS(I). These disclosures will be prescribed in the CIS Code to provide critical and useful information to fund investors. 

MAS will provide managers of Authorised Schemes (including REITs) adequate time to prepare for the transition from RAP 7 to SFRS(I). MAS is proposing to require Authorised Schemes (including REITs) to comply with the proposed amendments to the CIS Code with effect from the financial year ending on or after 31 December 2027. 

Reference materials 

The consultation paper is available on this webpage of the MAS website www.mas.gov.sg.