pc
nid 93195
Jun 12, 2026
pthandapani@vixio.com
Singapore
Monetary Authority of Singapore
financial services
79% of draft length
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2001 charsSingapore's Monetary Authority Publishes Good Disclosure Practices for Retail Environmental Social Governance Funds
On June 10, 2026, the Monetary Authority of Singapore (MAS) published an information paper setting out good disclosure practices for environmental, social, and governance (ESG) funds in their adherence with Circular No. CFC 02/2022: Disclosure and Reporting Guidelines for Retail ESG Funds.
The information paper outlines MAS's supervisory expectations for effective governance structures, frameworks, policies, and procedures, and controls with respect to valuation of funds' assets. These expectations are based on key findings from thematic inspections of selected fund management companies' (FMCs) investment processes across a range of investment strategies, including those conducted by external auditors appointed by MAS. The paper also sets out MAS's supervisory expectations for effective governance structures, frameworks, policies, and procedures for overseeing and managing FMCs' investment processes. Additionally, the information paper outlines MAS's supervisory expectations and good practices observed in prospecting and advertising activities; advisory and sales processes; safeguards for sales to vulnerable customers; and complaints handling processes.
Fund managers offering retail ESG funds should review the guidance to ensure their disclosure practices align with MAS's supervisory expectations. The information paper is intended to assist FMCs in strengthening their governance frameworks and investment oversight processes. Fund managers are encouraged to adopt the good practices outlined in the information paper to enhance transparency and investor protection in the retail ESG funds market. The guidance complements existing regulatory requirements under Circular No. CFC 02/2022 and supports MAS's broader objective of promoting fair dealing and effective governance in Singapore's collective investment schemes market.
REFERENCES:
Monetary Authority of Singapore. (2026, June 10). Good Disclosure Practices for Retail ESG Funds. Retrieved from https://www.mas.gov.sg/
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1575 charsMonetary Authority of Singapore Publishes Good Disclosure Practices for Retail Environmental Social Governance Funds
The Monetary Authority of Singapore (MAS) has issued an information paper on good disclosure practices for retail ESG funds.
This information paper prescribes:
Investment Focus and Strategy : It is good practice for managers to clearly define ESG-related terms and avoiding vague terminology such as "sustainable leaders" without explanation. When using ESG criteria or metrics, managers should disclose the sources (proprietary or third-party), calculation methodologies, underlying data descriptions, and minimum ESG ratings or scores that investments must meet. Where investments do not meet minimum ESG scores, managers should disclose alternative criteria or due diligence processes.
Reference Benchmark : For ESG funds tracking an ESG index, managers should disclose the nature of the ESG data, potential frequency of changes to index methodologies, and the benchmark's methodology. Managers should also disclose if they or related corporations influence the construction of the index.
Risks : The prospectus of an ESG fund should outline risks related to its ESG focus and investment strategy. For recognized ESG funds, it is recommended to include a summary of these risks in the Singapore wrapper for clarity.
Additional Information : If an ESG fund uses stakeholder engagement activities to achieve its ESG goals, it should disclose the purpose, extent, and mechanisms of such engagement, including conditions for divestment. Managers are also encouraged to provide periodic updates on engagement activities, including actual voting records, on their websites.