Plans by Singapore banks to broaden product providers, offerings under SRS framework shelved

The Competition and Consumer Commission of Singapore (CCCS) has halted its review of a proposed Supplementary Retirement Scheme (SRS) framework following the withdrawal of a joint application by DBS, OCBC, and UOB to implement changes.

The proposed framework, announced in November 2023, sought to streamline the onboarding and management of SRS product providers and their offerings, potentially expanding the range of products available to help individuals grow their retirement savings.

If implemented, the framework was expected to increase competition by allowing more financial institutions to offer SRS products, broadening the options for investors to grow their retirement funds.

However, with the banks’ withdrawal of the application, CCCS said on Thursday (Dec 26) that there would be no changes to current SRS operations, ensuring no impact on existing account holders.

“We would like to assure our customers that we are committed to continue providing the SRS service to support their retirement needs,” the trio of banks said in a joint statement.

“They can continue to invest in a wide range of products using their SRS funds including bonds, Singapore Government Securities, fixed deposits, unit trusts, stocks and single premium insurance.”

The decision concludes CCCS’ evaluation, which had included seeking public feedback between November last year and early January 2024 on whether the joint implementation might affect market competition or consumer choice.

The SRS, part of Singapore’s broader Central Provident Fund scheme, is a voluntary savings programme designed to encourage retirement savings, offering tax benefits for contributions.

Source: Business Times © SPH Media Limited. Permission required for reproduction.

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