MAS FAQs Provide Guidance on Application of SFA to Banks and Insurers
MAS updated the frequently asked questions (FAQs) that are meant to provide guidance to the industry on MAS’ policy and administration of the Securities and Futures Act and regulations. The FAQs, among other issues, provide guidance on the application of Securities and Futures Act, or SFA, and Securities and Futures (Licensing and Conduct of Business) Regulations, or SF(LCB)R, to banks, merchant banks, finance companies, and insurers. The FAQs also provide guidance on the scope of capital markets services licensing (other than for fund management companies), appointment of representatives, and business conduct rules.
Among other issues, the FAQs clarify that banks, merchant banks, and finance companies that conduct any regulated activity are required to comply with certain business conduct rules in relation to that regulated activity. These rules are specified in Regulation 54 of the SF(LCB)R. The FAQs also clarify that a bank will be required to notify MAS on its activity of dealing in capital markets products that are OTC derivatives contracts via Form 26 and to ensure that individuals conducting the regulated activity on its behalf are similarly appointed as representatives to dealing in capital markets products that are OTC derivatives contracts.
Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, Securities and Futures Regulation, Governance, FAQ, SFA, OTC Derivatives, MAS
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