ESMA and MAS signed a memorandum of understanding, or MoU, to allow use of the financial benchmarks of Singapore in EU. The signing of the memorandum of understanding follows the equivalence decision by EC, which recognizes the Singapore’s regulatory framework on financial benchmarks as equivalent to the requirements under the Benchmarks Regulation in EU. The memorandum and the equivalence decision will allow financial institutions in EU to continue using, as reference rates in their contracts, both Singapore Interbank Offered Rate (SIBOR) and the Singapore Dollar Swap Offer Rate (SOR), which are the financial benchmarks regulated in Singapore.
Under the memorandum, ESMA and MAS will share information and supervisory activities on Singapore-regulated financial benchmarks. The purpose of this memorandum is to:
- Establish, between ESMA and MAS, the cooperation arrangements that are operational, thus ensuring the fulfillment of the condition set out in Article 30(1)(d) of Benchmarks Regulation.
- Provide ESMA and MAS with an appropriate mechanism for the exchange of information, including the mechanism for prompt notification to ESMA where MAS deems that an administrator authorized in Singapore and covered by the equivalence decision of EC is in breach of the conditions of its authorization or other relevant national legislation in Singapore; the purpose is also to provide ESMA and MAS with procedures on the coordination of supervisory activities in relation to the administration of benchmarks, including on-site inspections.
Keywords: Europe, Asia Pacific, Singapore, Banking, Securities, Benchmarks Regulation, Financial Benchmarks, SIBOR, SOR, Equivalence Regime, MAS, ESMA
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.