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Reduction of CPF Investment Scheme Fees deferred to 1 Oct 2020

The second phase of reductions to the CPF Investment Scheme (CPFIS) sales charge and wrap fees cap will be deferred by one year from 1 October 2019 to 1 October 2020. This is in response to industry feedback that financial advisors require more time to adjust to the revised CPFIS fees structure.


In March 2018, the Ministry of Manpower announced the removal of the sales charge and a reduction of the wrap fees cap for the CPFIS in two phases1.  The first phase of reduction took effect from 1 October 2018.

Removal of sales charge under CPFIS

Currently, financial advisors are allowed to charge a sales charge of up to 1.5% for Investment-Linked Insurance Policies and unit trusts offered under CPFIS. The removal of the sales charge reduces the cost of investing for CPFIS members and better align investment behaviour to members who have the time and knowledge to invest. Today, these members are already able to buy unit trusts directly on online platforms for zero sales charge. 

Lower cap on wrap fees under CPFIS

Financial advisors today can charge a wrap fee of up to 0.7% of assets under management (AUM) per annum for CPFIS members with wrap accounts. The cap on annual wrap fees will be lowered to 0.4% of AUM per annum, similar to the fees that are charged by online investment platforms in the cash market. 

CPFIS fee cap revisions

The CPFIS fee cap revisions will be as follows: 

   Prior to Oct 2018 
From 1 Oct 2018 
 From 1 Oct 2020
1 Oct 2019)
Sales charge cap 
(for new CPFIS purchases)
3.0% 1.5% 0%
 Wrap fee cap 
(for existing and new accounts)
 1.0%  0.7%  0.4%


Members with enquiries may call the CPF Call Centre at 1800-227-1188 or email 


  1. Speech by Mrs Josephine Teo, Second Minister for Manpower, at the Committee of Supply, 6 March 2018