The sale of overly complex and risky products that are likely to mislead the average investor into thinking his money will be safe is not encouraged.
This is why the Monetary Authority of Singapore has enhanced its existing fair dealing guidelines to cover all such companies, as well as the products and services that they offer. Indeed, the MAS does not encourage the sale of overly complex and risky investment products that are likely to mislead the average investor into thinking that his money would be safe.A financial institution is offered distribution rights for a complex investment product for retail customers. But upon evaluation of its complexity and risks, the institution finds that the product might not be easily understood by the average investor and so decides not to sell it.