Fund Management Companies (FMCs)/insurers have undertaken to comply with the Total Expense Ratio (TER) caps for funds included under CPF Investment Scheme. If their List A funds are not able to comply with the new TER caps from 2016,
FMCs/insurers will be required to compensate the funds for the difference between the actual expense ratios and the new TER caps. The funds would then be downgraded to List B with effect from the implementation date (see
relevant reporting period, (PDF, 0.1MB)). Under List B, funds are not allowed to take in new CPF monies.
