Featured Product

    MAS Clarifies Decision of EC to Repeal Equivalence Status for CRAs

    September 03, 2019

    MAS published its reply to the Parliamentary questions on the EC decision to repeal equivalence status for credit rating agencies (CRAs) in Singapore. Some media reports might have given the impression that EC is reducing its market access to financial institutions in Singapore. Tharman Shanmugaratnam, a Senior Minister and Minister in charge of MAS, explained that the EC decision covers only CRAs, for which it still allows the use of endorsement approach, and does not extend to any other financial services.

    Furthermore, EC recognizes CRAs in a third country through two approaches. First, deeming the third country’s CRA rules as equivalent to EC rules, which is called the equivalence decision. Second, an endorsement approach, where the CRAs in the third country rely on their related entities in EU to endorse their ratings. CRAs in Singapore have been using the endorsement approach and EC has confirmed that it will continue to recognize Singapore-based CRAs using this approach.

    The CRA regulatory regime of MAS is based on, and consistent with, the standards promulgated by IOSCO. EC has assessed the CRA regulatory regime of MAS to be less prescriptive than EU rules in certain areas, such as in defining specific situations in which a conflict of interest for the CRA arises. MAS takes a more principles-based approach. It nevertheless requires conflicts of interest to be effectively addressed and is fully in line with international standards. Mr. Shanmugaratnam highlighted that Singapore is in good standing with EU. MAS will continue to closely engage its EU counterparts in reviewing the rules to ensure that financial institutions in Singapore continue to have access to the EU market in various financial services.

     

    Keywords: Europe, EU, Asia Pacific, Singapore, Banking, Securities, CRAs, Credit Ratings, Equivalence Decisions, Endorsement Regime, EC, MAS

    Related Articles
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C

    FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.

    January 15, 2021 WebPage Regulatory News
    News

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.

    January 15, 2021 WebPage Regulatory News
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Technical Package on Reporting Framework 3.0

    EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.

    January 14, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets

    APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.

    January 14, 2021 WebPage Regulatory News
    News

    ECB Letter Sets Out Strategies to Address Issue of Nonperforming Loans

    ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.

    January 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6454