- Monetary Authority of Singapore’s (MAS) investigatory powers under the Securities and Futures Act 2001 (SFA) and Financial Advisers Act 2001 (FAA) will be strengthened and extended to the Financial Services and Markets Act 2022 (FSM Act), Insurance Act 1966 (IA), Payment Services Act 2019 (PS Act) and Trust Companies Act (TCA).
- MAS’ supervisory and inspection powers under the FAA, SFA and TCA will be strengthened. Among others, appointment of key officers of recognised market operators (RMOs), recognised clearing houses (RCHs) and approved trustees (ATs) will be subject to MAS’ approval premised on the fit and proper test.
- MAS will regulate Capital Markets Services Licence (CMSL) holders’ non-licensable activities on a risk-based basis through the imposition of written directions.
On 10 January 2024, MAS introduced the Financial Institutions (Miscellaneous Amendments) Bill 2024 (FIMA Bill) for First Reading in Parliament. Through the FIMA Bill, MAS aims to enhance its powers of investigation, reprimand, supervision and inspection of financial institutions under the FAA, FSM Act, IA, PS Act, SFA and TCA, and introduce other consequential and clarificatory amendments to the Monetary Authority of Singapore Act 1970 (MAS Act). The FIMA Bill is expected to be passed by Parliament and come into force in the second half of 2024.
Enhancements to MAS’ investigative, supervisory and inspection powers over financial institutions
Enhanced investigative powers
Under the FIMA Bill, MAS’ investigative powers under the SFA and FAA will be strengthened and/or extended to the FSM Act, IA, PS Act and TCA:
- Power to compel individuals to attend interviews and record written statements. MAS’ existing power under the SFA and FAA to compel individuals to attend interviews and record written statements will be extended to the FSM Act, IA, PS Act and TCA.
- Entering premises without warrant. MAS’ existing power under the SFA and FAA will be enhanced to allow MAS agents to enter premises without prior notice, provided there are reasonable grounds for suspecting that the premises are or have been occupied by a person under investigation in relation to a contravention of the SFA and FAA. This power will also be extended to the FSM Act, IA, PS Act and TCA.