MAS Issues Guidelines for Liquidity Risk Management by Fund Managers
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
Previous Article
BOE Article Explains Process for Bank Authorization in UKRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
