Featured Product

    MAS to Consolidate Regulation of Merchant Banks Under Banking Act

    May 21, 2019

    MAS published a consultation paper that proposes to consolidate the regulation of merchant banks under the Banking Act and to move merchant banks to a licensing regime under the MAS Act. Comment period on this consultation ends on June 19, 2019.

    MAS, in June 2015, had announced that it will remove the divide between the Domestic Banking Unit (DBU) and the Asian Currency Unit (ACU). Banks and merchant banks will no longer need to maintain two separate accounting units with effect from October 01, 2020. MAS subsequently conducted a closed consultation with merchant banks in February 2019, on the proposed consequential amendments to merchant banks’ regulatory requirements, following the removal of the DBU-ACU divide. MAS is considering the feedback received and will incorporate it into the relevant provisions, where appropriate. 

    In this consultation, MAS has proposed to consolidate the regulation of merchant banks under the Banking Act, upon removal of the DBU-ACU divide. The existing bank directives and notices, which have been issued under section 28 of the MAS Act, will accordingly be replaced by the proposed Banking Act provisions as well as regulations and notices issued under the Banking Act. The consolidation of merchant bank regulation under the Banking Act is not intended to introduce new requirements or modify existing ones, except for changes that have been previously communicated or under consultation with the merchant banks.

    MAS also proposed to move merchant banks to a licensing regime from the current approval framework under MAS Act. A licensing regime is appropriate as, like banks, merchant banks are subject to a formal set of prudential requirements. Under the proposed licensing regime, regulatory requirements for merchant banks will continue to be calibrated to reflect the different business models and activities of merchant banks compared to banks.


    Comment Due Date: June 19, 2019

    Keywords: Asia Pacific, Singapore, Banking, Banking Act, Licensing, MAS Act, MAS

    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    ESMA Consults on Guide to Internal Controls for Credit Rating Agencies

    ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs).

    December 05, 2019 WebPage Regulatory News
    News

    EU Finalizes Directive and Prudential Rules for Investment Firms

    EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms.

    December 05, 2019 WebPage Regulatory News
    News

    OSFI Revises Guideline on Principles for Management of Liquidity Risk

    OSFI finalized Guideline B-6 on the principles for the management of liquidity risk.

    December 05, 2019 WebPage Regulatory News
    News

    PRA Consults on Framework to Manage Outsourcing and Third-Party Risk

    PRA published a consultation paper CP30/19 that sets out proposals to modernize the regulatory framework on outsourcing and third-party risk management.

    December 05, 2019 WebPage Regulatory News
    News

    BoE, PRA, and FCA Consult to Strengthen Operational Resilience

    BoE, PRA, and FCA published a shared policy summary and coordinated consultation papers on new requirements to strengthen operational resilience in the financial services sector.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    OSFI Releases Guideline on Foreign Bank Branch Deposit Requirements

    OSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement.

    December 04, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4268