2023 MAS Regulatory Update Newsletter
The Monetary Authority of Singapore (“MAS”) demonstrated its determination to preserve Singapore as a leading financial services capital in the region and attract investment from funds and global investment management firms. In this report, we put together a summary of key regulatory updates issued by MAS over the past year.
This includes regulatory guidance and consultation proposals such as:
- Introduction of Framework for Single Family Offices;
- Proposed Guidelines on Transition Planning for Banks, Insurers, and Asset Managers;
- Report of Thematic Inspection on Corporate Finance;
- Proposed Changes to Complex Products Regime;
- Notice Relating to Financial Institutions on Information Sharing for AML/CFT; and
- New Regulatory Regime for Registered Fund Management Companies, among others.
PDF version: 2023 MAS Regulatory Update Newsletter
January
There were no notable regulatory updates published in January 2023.
February
Consultation paper on legislative amendments to enable conduct of general meetings by electronic means.
Joint proposals by the Accounting and Corporate Regulatory Authority (“ACRA”), the Ministry of Finance (“MOF”), and the Monetary Authority of Singapore (“MAS”) and legislative amendments to enable the conduct of general meetings by companies through electronic means.
March
There were no notable regulatory updates published in March 2023.
April
Consultation paper on enhancing safeguards for proper conduct of prospecting activities at public places, digital prospecting and telemarketing activities.
MAS issued a consultation paper seeking feedback on proposals to enhance safeguards for proper conduct of prospecting activities at public places and telemarketing, and address conduct risks and issues associated with these activities.
Corporate finance thematic inspection – good practices and key findings.
Following a thematic inspection of issue managers, MAS set out the good practices and weaknesses observed, and expectations arising from the inspection.
May
Consultation paper on proposed amendments to payment services regulations 2019, notices issued under the Payment Services Act 2019 or MAS Act and proposed new regulations on exemptions for a specified period.
MAS consultation paper on the proposed amendments to the above Regulations and Notices following the amendment of the Payment Services Act 2019.
Consultation paper on proposed amendments to the Securities & Futures (Reporting of Derivatives Contracts) regulations.
MAS provided its response to the consultation paper on proposed amendments to facilitate the aggregation and reporting of OTC derivatives data through standardisation and harmonisation of data elements by incorporating CPMI-IOSCO’s technical guidance.
June
Consultation paper on proposed code of conduct for ESG rating and data product providers.
MAS sought feedback on proposals to enhance standards and disclosures relating to ESG ratings and data products in Singapore, starting with a voluntary industry code of conduct for ESG rating and data product providers.
July
Consultation paper on proposed amendments to the Payment Services Regulations.
MAS set out proposed amendments to the Payment Services Regulations 2019 to implement key segregation and custody requirements for digital payment token services.
Consultation paper on proposed measures on market integrity in digital payment token services.
MAS introduced regulatory measures for digital payment token service providers, as well as prohibitions against unfair trading practices to address market integrity risks in digital payment token services.
Consultation paper on proposed framework for Single Family Offices.
MAS set out proposed framework for Single Family Offices (“SFOs”) operating in Singapore under which there will be qualifying criteria for class exemption from licensing under the Securities and Futures Act (“SFA”), as well as notification and annual reporting requirements.
Consultation paper on enhancing pre- and post-transaction safeguards for retail clients.
MAS provided its response to the industry on the proposed introductions on the obligations to provide transaction confirmations, call back records, independent review of product recommendations, etc to retail clients.
Consultation paper on proposed exemptions for Approved Exchange and Recognised Market Operators that provide certain clearing and settlement services.
MAS issued the proposal to streamline regulatory provisions and make regulatory exemptions for Approved Exchange or Recognised Market Operators providing clearing and settlement services from being regulated as an Approved Clearing House or Recognised Clearing House.
Annual Report 2022/2023
The annual report for 2022/2023 was published by MAS setting out activities and achievements of the financial year.
FSDF Annual Report 2022/2023
The Financial Sector Development Fund (“FSDF”) offers grants to incentivise financial sector players in talent development, technology and innovation, and financial sector activities.
August
There were no notable regulatory updates published in August 2023.
September
Consultation paper on draft notices on the competency requirements for representatives conducting regulated activities under the Financial Advisers Act and Securities and Futures Act.
MAS provided its response on industry feedback to the draft competency requirements for representatives.
Consultation paper on proposed guidelines on transition planning for asset managers.
MAS introduced Guidelines setting out expectations for asset managers to have a sound transition planning processes for their investee companies in relation to the global transition to a net zero economy and the expected physical effects of climate change.
MAS Enforcement Report 2022/2023.
The report sets out key enforcement actions taken for the period of 1st January 2022 to 30th June 2023, statistics on cases opened and enforcement outcomes. The report also includes MAS’ enforcement priorities for 2022/2023 and key enforcement priorities for 2023/2024.
October
Consultation paper on repeal of regulatory regime for Registered Fund Management Companies.
MAS sought feedback on the transitional arrangements for existing RFMCs that intend to continue operating fund management businesses following changes to the regulatory regime for RFMCs.MAS sought feedback on the transitional arrangements for existing Registered Fund Management Companies (“RFMCs”) that intend to continue operating fund management businesses following changes to the regulatory regime for RFMCs.
Consultation paper on proposed Shared Responsibility Framework.
Joint consultation by MAS and the Infocom Media Development Authority setting out a Shared Responsibility Framework for sharing responsibility for scam losses amongst financial institutions, telecommunication operators and consumers.
Consultation paper on proposed enhancements to the E-Payments User Protection Guidelines.
MAS sought industry comments on proposed enhancements to the E-Payments User Protection Guidelines to uplift standards of anti-scam controls across the financial sector.
Strengthening liquidity risk management practices for Fund Management Companies.
MAS set out expectations for effective liquidity risk management frameworks, practices and key findings from thematic liquidity inspections and review of prospectuses focused on collective investment schemes offered to retail investors.
November
Consultation paper on proposed changes to complex products regime.
MAS provided response to industry feedback on the consultation to update the complex products regime. This includes review of classifications of excluded investment products or specified investment products and streamlining of safeguards.
Consultation paper on the notice relating to FI-FI information sharing for AML/CFT.
MAS sought views on a proposed notice that sets out requirements relating to the sharing of information through the Financial Institution to – Financial Institution (“FI – FI”) information sharing platform for AML/CFT.MAS sought views on a proposed notice that sets out requirements relating to the sharing of information through the FI-FI information sharing platform for AML/CFT.
Consultation paper on proposed regulatory measures for digital payment token services.
Consultation setting out regulatory measures for licensees and exempt payment service providers providing digital payment token services under the Payment Services Act 2019.
December
Consultation paper on proposed amendments to the capital framework for Approved Exchanges and Approved Clearing Houses.
MAS released new rules requiring Approved Exchanges and Approved Clearing Houses to comply with conditions aimed at ensuring commitment and ability to conduct its business as a going concern, provide for a financial buffer against unexpected losses and allow for an orderly recovery or wind-down of the entity in distress.
Consultation paper on proposed enhancements to the Policy Owners’ Protection Scheme in Singapore.
MAS sought views on the proposed changes to the Policy Owners’ Protection Scheme to enhance its coverage, simplify its design, and improve its operational efficacy.
Consultation paper on proposals to mandate reference checks.
MAS provided response to industry feedback on the proposal to require financial institutions to conduct reference checks and respond to reference check requests on employees based on minimum mandatory information within a specified period of time.
