MAS Consults on Scope of Application of IAC Guidelines

By Regulatory News

June 06, 2019

MAS launched a consultation on the scope of application of the guidelines on Individual Accountability and Conduct, or IAC, for the financial institutions in Singapore. MAS proposes to extend the Guidelines to all financial institutions regulated by MAS. Comment period on this consultation ends on July 22, 2019. MAS has also published its response to the feedback received on an earlier consultation on the Individual Accountability and Conduct guidelines.

The information to be provided by a third party seeking authorization to assess the compliance of securitizations with the STS criteria provided for in Securitization Regulation should enable a competent authority to evaluate whether and, to what extent, the applicant meets the conditions of Article 28(1) of the Securitization Regulation. An authorized third party will be able to provide STS assessment services across EU. The application for authorization should, therefore, comprehensively identify that third party, any group to which this third party belongs, and the scope of its activities. With regard to the STS assessment services to be provided, the application should include the envisaged scope of the services to be provided as well as their geographical scope, particularly the following:

To facilitate effective use of the authorization resources of a competent authority, each application for authorization should include a table clearly identifying each submitted document and its relevance to the conditions that must be met for authorization.
To enable the competent authority to assess whether the fees charged by the third party are non-discriminatory and are sufficient and appropriate to cover the costs for the provision of the STS assessment services, as required by Article 28(1)(a) of Securitization Regulation, the third party should provide comprehensive information on pricing policies, pricing criteria, fee structures, and fee schedules.
To enable the competent authority to assess whether the third party is able to ensure the integrity and independence of the STS assessment process, that third party should provide information on the structure of those internal controls. Furthermore, the third party should provide comprehensive information on the composition of the management body and on the qualifications and repute of each of its members.
To enable the competent authority to assess whether the third party has sufficient operational safeguards and internal processes to assess STS compliance, the third party should provide information on its procedures relating to the required qualification of its staff. The third party should also demonstrate that its STS assessment methodology is sensitive to the type of securitization and that specifies separate procedures and safeguards for asset-backed commercial paper (ABCP) transactions/programs and non-ABCP securitizations.

The use of outsourcing arrangements and a reliance on the use of external experts can raise concerns about the robustness of operational safeguards and internal processes. The application should, therefore, contain specific information about the nature and scope of any such outsourcing arrangements or use of external experts as well as the third party's governance over those arrangements. Regulation (EU) 2019/885 is based on the draft regulatory technical standards submitted by ESMA to EC.

Related Links

Effective Date: June 18, 2019

Press Release

Proposed Rule 1

Proposed Rule 2

Proposed Rule 3

Presentation on Regulatory Framework (PDF)

Presentation on Resolution Plan Rules (PDF)

MAS, in April 2018, had consulted on the guidelines on Individual Accountability and Conduct and this consultation had ended on May 25, 2018. MAS has considered the comments received during the consultation period and made revisions to the Individual Accountability and Conduct guidelines, where appropriate. Respondents had various comments on the scope of application of the Individual Accountability and Conduct guidelines. In particular, three respondents proposed to extend the Guidelines to insurance brokers and approved trustees for collective investment schemes. Two others suggested to include registered fund management companies (RFMCs), while one was supportive of excluding RFMCs from scope. There was also one suggestion to extend the Individual Accountability and Conduct guidelines to all financial institutions regulated by MAS. Consequently, MAS has issued this consultation to extend the scope of application of the guidelines on Individual Accountability and Conduct.

The guidelines on Individual Accountability and Conduct reinforce financial institutions’ responsibilities in the areas of promoting the individual accountability of senior managers, strengthening the oversight of employees in material risk functions, and embedding standards of proper conduct among all employees. The guidelines set out five outcomes that financial institutions are expected to work toward through implementing appropriate policies and processes to address the MAS expectations underpinning each outcome.

Comment Due Date: July 22, 2019

Keywords: Asia Pacific, Singapore, Banking, Securities, Insurance, Operational Risk, Conduct Risk, Individual Accountability, Guidelines, MAS

Governor of Bank of Italy on Addressing Cyber Risk in Financial Sector

CPMI and IOSCO Consult on a Paper on CCP Default Management Auctions


News IOSCO Report Examines Application of International Cyber Standards IOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions. June 18, 2019 WebPage Regulatory News
News EC Amends Regulation Supplementing Solvency II Directive EC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance. June 18, 2019 WebPage Regulatory News
News PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK. June 17, 2019 WebPage Regulatory News
News FSB Assesses Implementation of Compensation Standards and Principles FSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions. June 17, 2019 WebPage Regulatory News
News IMF Publishes Reports on 2019 Article IV Consultation with Ireland IMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland. June 17, 2019 WebPage Regulatory News
News EBA Updates Data on Deposit Guarantee Schemes in EU EBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits. June 17, 2019 WebPage Regulatory News
News SNB Updates Form for Reporting Solvency Risk of Counterparties SNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS). June 17, 2019 WebPage Regulatory News
News ISDA Studies Variation in Global Implementation of Margin Requirements ISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations. June 17, 2019 WebPage Regulatory News
News US Agencies Finalize Rule to Streamline Reporting for Small Banks US Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions. June 17, 2019 WebPage Regulatory News
News IAIS Consults on Revisions to IAIS Supervisory Material IAIS has launched a public consultation on revisions to the IAIS supervisory material. June 14, 2019 WebPage Regulatory News

RESULTS 1 - 10 OF 3264

Solutions

Industries

Moody's Analytics Brands

A-Z Product List

Access Online Products

Moody's Analytics Product Training

Insights

Regulatory News

Webinars-on-Demand

Moody's Analytics Risk Perspectives

Meet Our Experts

Connect With Us

Events Calendar

Training

Inquire About Upcoming Events

Meet Our Experts

About Us

Regions

Office Locations

Partner With Us

Connect With Us

Join Us

MAS Consults on Scope of Application of IAC Guidelines

By Regulatory News

Related Articles

IOSCO Report Examines Application of International Cyber Standards

EC Amends Regulation Supplementing Solvency II Directive

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

FSB Assesses Implementation of Compensation Standards and Principles

IMF Publishes Reports on 2019 Article IV Consultation with Ireland

EBA Updates Data on Deposit Guarantee Schemes in EU

SNB Updates Form for Reporting Solvency Risk of Counterparties

ISDA Studies Variation in Global Implementation of Margin Requirements

US Agencies Finalize Rule to Streamline Reporting for Small Banks

IAIS Consults on Revisions to IAIS Supervisory Material

By Regulatory News

Previous Article

Next Article