Featured Product

    MAS Issues Guidelines for Liquidity Risk Management by Fund Managers

    August 16, 2018

    MAS issued the final guidelines on liquidity risk management practices for fund management companies, with respect to the management of collective investment schemes (CIS). These guidelines have been issued pursuant to section 321 of the Securities and Futures Act (SFA). Draft amendments to the Code on Collective Investment Schemes (CIS Code) have also been published, along with the MAS feedback to the responses received to the consultation on the guidelines and CIS code amendments. The effective date of the revised CIS Code is August 17, 2018, except for the revisions to paragraph 8.8 of Appendix 1 and paragraph 11.1(c)(v) of Appendix 6, which will take effect for the first annual report relating to their respective financial year ending on or after December 31,2018.

    These guidelines should be read in conjunction with the provisions of the SFA, the SF(LCB)R, CIS Code, along with the other relevant legislation and other guidelines and frequently asked questions (FAQs) issued by MAS. The guidelines aim to promulgate sound liquidity risk management practices that fund management companies should adopt, where appropriate, to minimize the risk of investor detriment due to mismatches in the liquidity profile of the assets in the CIS and its redemption terms. Additionally, amendments to the CIS Code seek to enhance the resilience of money market funds to liquidity risks and strengthen their ability to meet redemption requests from investors, especially during stressed market situations. The consultation on these guidelines and the draft amendments to the CIS Code ran from October 26, 2017 to November 28, 2017. After considering the feedback received, MAS has made further revisions to the guidelines, where appropriate.

     

    Effective Date: August 17, 2018 (CIS Code Amendments)

    Keywords: Asia Pacific, Singapore, Banking, Liquidity Risk, MMFs, CIS, Fund Management Companies, MAS

    Related Articles
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6004