CCCS halts review of proposed SRS changes after banks withdraw application

SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) halted reviewing a proposed change to the Supplementary Retirement Scheme (SRS) after DBS, OCBC, and UOB withdrew their joint application to implement changes, as reported by The Business Times.

The proposed framework, announced in November 2023, aimed to simplify the process for onboarding and managing SRS product providers and their offerings. It was intended to allow more financial institutions to offer SRS products, potentially increasing competition and providing more investment options for people saving for retirement.

With the banks pulling out their application, CCCS said on Dec 26 that there would be no changes to the way the SRS operates, and there would be no impact on existing SRS account holders.

In a joint statement, DBS, OCBC, and UOB assured that the SRS service would support the retirement needs of their customers.

They said customers could still invest in a variety of products using their SRS funds, such as bonds, Singapore Government Securities, fixed deposits, unit trusts, stocks, and single premium insurance.

The CCCS had been reviewing the proposed changes since the banks filed the application, and part of the review process involved seeking public feedback between November 2023 and early January 2024. The commission wanted to know whether the proposed changes would affect market competition or consumer choice.

The SRS was introduced in 2001 to encourage voluntary retirement savings alongside Singapore’s mandatory Central Provident Fund (CPF) system and to provide tax benefits for contributions. Each year, the contribution limits are set at S$15,300 for Singapore citizens and permanent residents, and S$35,700 for foreigners. /TISG

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