MAS Consults on Draft Notices and Guidelines Related to the SFA
MAS published consultation paper I on draft notices and guidelines pursuant to the Securities and Futures Act (SFA). Given the wide-ranging amendments to the SFA, MAS will consult on draft notices and guidelines to support the implementation of the legislative amendments in two phases. MAS invites comments from financial institutions and all interested parties by November 03, 2017.
The Securities and Futures (Amendments) Act, or SF(A) Act, provides MAS with legislative powers under the SFA to complete the two-phase review to implement over the counter (OTC) derivatives regulatory reforms. It also introduces amendments aimed at enhancing regulatory safeguards for retail investors, enhancing the credibility and transparency of the capital markets and strengthening the ability of MAS to take enforcement action against market misconduct. The following proposals are set out in this consultation:
- New Notice on Risk Fact Sheet for Contracts for Differences (CFD Notice) and Guidelines on MAS Notice on Risk Fact Sheet for Contracts for Differences (CFD Guidelines): The new CFD Notice sets out the requirement for capital markets services (CMS) Licensees and Exempt Financial Institutions dealing in CFD with retail investors to provide a risk fact sheet to the retail investors. The accompanying CFD Guidelines provide guidance to assist CMS Licensees and Exempt Financial Institutions in preparing the risk fact sheet.
- Amendments to SFA 04-N13 Notice on Risk-Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences (RBC Notice):The RBC Notice is being amended primarily to support the changes to product definitions in Part I of the SFA and changes to Part IV of the SFA and the Second Schedule to the SFA to extend the capital markets services licensing regime to OTC derivatives.
- Amendments to MAS Notices 7571, 11052, 1093, 8164, and SFA 04-N045, all relating to the Lending of Singapore Dollar to Non-Resident Financial Institutions (MAS Notice 757 and Equivalent Notices): MAS is proposing to amend MAS Notice 757 and equivalent Notices, to take into account the change in the definition of “securities” in the SF(A) Act.
- New Guidelines on the Interpretation of “Persons Who Commonly Invest” in Division 3 of Part XII of the SFA (Common Investors Guidelines): The guidelines seek to provide interpretative guidance for the statutory definition of Common Investor and its application in the insider trading provisions.
Comment Due Date: November 03, 2017
Keywords: Asia Pacific, Singapore, Securities, SFA, OTC Derivatives, Notices and Guidelines, MAS
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