MAS updated the frequently asked questions (FAQs) that are meant to provide guidance to the industry on MAS’ policy and administration of the Securities and Futures Act and regulations. The FAQs, among other issues, provide guidance on the application of Securities and Futures Act, or SFA, and Securities and Futures (Licensing and Conduct of Business) Regulations, or SF(LCB)R, to banks, merchant banks, finance companies, and insurers. The FAQs also provide guidance on the scope of capital markets services licensing (other than for fund management companies), appointment of representatives, and business conduct rules.
Among other issues, the FAQs clarify that banks, merchant banks, and finance companies that conduct any regulated activity are required to comply with certain business conduct rules in relation to that regulated activity. These rules are specified in Regulation 54 of the SF(LCB)R. The FAQs also clarify that a bank will be required to notify MAS on its activity of dealing in capital markets products that are OTC derivatives contracts via Form 26 and to ensure that individuals conducting the regulated activity on its behalf are similarly appointed as representatives to dealing in capital markets products that are OTC derivatives contracts.
Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, Securities and Futures Regulation, Governance, FAQ, SFA, OTC Derivatives, MAS
Previous ArticleIAIS and SIF Publish Paper on Implementation of TCFD Recommendations
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.