Articles & Events Summary

Ongoing Regulatory Compliance in Singapore

The Monetary Authority of Singapore (MAS) sets out a high regulatory yardstick to ensure that the relevant risks faced by all stakeholders are adequately mitigated, positively effecting sustainability of the industry. Adherence to these regulations on an ongoing basis is important as compliance breaches may impact the reputation, sustainability, and growth of Financial Institutions (FIs).

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Second reading of Payment Services Bill (PSB) Singapore

The Payment Services Bill (PSB) was read for the second time by Mr. Ong Ye Kung, Minister for Education, on behalf of Mr. Tharman Shanmugaratnam, Deputy Prime Minister and Minister-In-Charge of The Monetary Authority of Singapore on 14 Jan 2019.The Bill is set to combine various types of payment services under the 2006 Payment Systems (Oversight) Act – or PS (O) A – and the 1979 Money-Changing and Remittance Businesses Act – or MCRBA.

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Industry news

Banks Allowed to Delay Implementation of E-Payment User Protection Guidelines

The Monetary Authority of Singapore (MAS) will grant banks and credit card issuers more time to adopt the E-Payments User Protection Guidelines issued in September 2018. The original time limit for implementation of the guidelines was till 31st January 2019, now this has been extended till 30th June 2019 following the requests from banks for more time to implement the guidelines, owing to the scale and complexity of system changes needed to implement the transaction notification standards for all products and customers as set out in the guidelines.

For more information, click here.

Former Malaysian PM Najib faces three more money laundering charges

Former Malaysian Prime Minister Najib Razak has been charged with three more counts of money laundering, allegedly receiving the proceeds of illegal activities in his personal bank accounts amounting to a total of 47 million ringgit (8.7 million pounds) in proceeds of illegal activities, according to charge sheets seen by Reuters.

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Malaysia probing audit firms’ conduct in 1MDB scandal

Malaysia’s securities regulator is now probing into the conduct of auditors of 1Malaysia Development Bhd (1MDB), a state fund that was wound up after losing billions of dollars in a scandal that erupted under the country’s previous government as per the statement made by them on 26th Jan. Allegation against IMDB is that over $4.5 billion was stolen from 1MDB by top officials of the fund and their associates between 2009 and 2014.

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More than 95,000 GDPR breach complaints since EU rules kicked in

More than 95,000 complaints have been received by Europe’s data protection regulators on possible data breaches, eight months after the adoption of a landmark EU privacy law. The General Data Protection Regulation (GDPR) gives new powers toprivacy enforcers, allowing them to levy fines of up to 4 percent of global revenue or 20 million euros ($23 million), whichever is higher.

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MAS halts local Securities Token Offering for regulatory breach

The Monetary Authority of Singapore (MAS) halted an initial coin offering (ICO) issuer from proceeding with its securities token offering in Singapore until it can completely comply with regulatory requirements under the Securities and Futures Act (SFA). MAS reminded consumers to understand the benefits and risks of any product or service before committing to an investment.

For more information, click here.

S$75 million grant to enhance Singapore as a Financial Hub

The Monetary Authority of Singapore (“MAS”) in the coming month will launch an S$75 million Grant for equity Market Singapore (“GEMS”). Mr. Heng Swee Keat, Minister of Finance and MAS board member announced the same at the UBS Wealth Insights conference, where he highlighted the vision of Singapore being Asia’s center for capital raising and enterprise financing. GEMS will be a 3 year initiative which will help companies seeking to raise capital via the equity market in Singapore.

For more information, click here.

Wells Fargo to pay $575m Fine due to lack of compliance controls

American multinational Wells Fargo & Co, have to pay $575m to settle state-level claims over sales practices which were due to a lack of compliance controls. This latest scandal adds to the series of scandals, which are been going on for the last two years. This settlement among the 50 states and District of Columbia resolves state investigation into the Wells Fargo’s practices from 2002 to 2017.

For more information, click here.

MAS Regulatory Updates – Highlights

31st January 2019 – Exemptions issued pursuant to section 337(2) of   the Securities and Futures Act

Monetary Authority of Singapore (MAS) has issued Exemption for an Approved Clearing House (ACH) from operational requirements regarding the treatment of customer monies in order to facilitate existing market practices on 7th December 2018. These exemptions were granted subject to appropriate conditions to retain the policy intent of protecting customer settlement monies in the event of a default of either the ACH or its members.

For more information, click here to access the relevant section on the MAS website.

18th January 2019 – Guidelines on Electronic Offers of Securities, Securities-based Derivatives Contracts or Units in Collective Investment Schemes

The guidelines are issued pursuant to section 321 of the Securities and Futures Act which applies primarily to offers of securities, securities-based derivatives contracts and units in collective investment schemes (“CIS”) made through the internet, including offers made via internet banking platforms and mobile applications.

For more information, click here to access the relevant section on the MAS website.

17th January 2019 – Guidelines on Risk Mitigation Requirements for Non-Centrally Cleared Over-The-Counter Derivatives Contracts

MAS has issued guidelines to provide guidance to entities (“OTCD Intermediaries”) exempted under section 99(1)(a), (b) and (c) of the Securities and Futures Act, for dealing in capital markets products that are over-the-counter derivatives contracts which are not centrally cleared by a clearinghouse on the requirements set out in regulation 54B of the Securities and Futures (Licensing and Conduct of Business) Regulations.

For more information, click here to access the relevant section on the MAS website.

9th January 2019 – Guidelines on Prevention of Money Laundering and Countering the Financing of Terrorism – Holders of Money-Changer’s License and Remittance License.

The guidelines provide guidance to all holders of a money changer’s license and holders of a remittance license on the requirements in MAS notice 3001 on prevention of money laundering and countering the financing of terrorism. These guidelines should be read in conjunction with the Notice.

For more information, click here to access the relevant section on the MAS website.

9th January 2019 – Prohibition on Issuance of Bearer Negotiable Instruments and Restriction of Cash Payout

This notice is issued pursuant to section 27B of the Monetary Authority of Singapore Act applies to all holders of a money changer’s license and remittance license and shall not apply to any licensee that holds a casino license under section 49 of the Casino Control Act.

For more information, click here to access the relevant section on the MAS website.

9th January 2019 – MAS Notice 3001 (Amendment) 2019

MAS has issued the notice pursuant to section 27B of the Monetary Authority of Singapore Act to make an amendment to the notice 3001 issued regarding prevention of money laundering and countering the financing of terrorism that applies to holders of money-changers license and remittance license.

For more information, click here to access the relevant section on the MAS website

9th January 2019 – MAS Notice 3001

The Notice is issued pursuant to section 27B of the Monetary Authority of Singapore Act and applies to all holders of a money changer’s license and remittance license on prevention of money laundering and countering the financing of terrorism.

For more information, click here to access the relevant section on the MAS website.

7th January 2019 – Securities and Futures (Classes of Investors) (Amendment No. 2) Regulations 2019

The regulations will come into operation on 8 April 2019. The Securities and Futures (Classes of Investors) Regulations 2018 are amended by insertion of regulations regarding the application of modified definition of “accredited investor” for purposes of specified provisions of the Securities and Futures  Act and Securities and Futures (Licensing and Conduct of Business).

For more information, click here to access the relevant section on the MAS website.

7th January 2019 – Securities and Futures (Classes of Investors) (Amendment) Regulations 2019

The regulations came into operation on 8 January 2019. The regulation 3 of the Securities and Futures (Classes of Investors) Regulations 2018 is deleted and regulation 5 regarding revocation and saving provisions is amended.

For more information, click here to access the relevant section on the MAS website.

7th January 2019 – Financial Advisers (Amendment No. 2) Regulations 2019

The regulations will come into operation on 8 April 2019. The definition of accredited investors and the definition of “client’s money or property” are amended in the Financial Advisers Regulations (Rg. 2).

For more information, click here to access the relevant section on the MAS website.

7th January 2019 – Financial Advisers (Amendment) Regulations 2019

The regulations came into operation on 8 January 2019. The definition of accredited investors and the definition of qualified investor are amended in the Financial Advisers Regulations (Rg. 2).

For more information, click here  to access the relevant section on the MAS website.

4th January 2019 – Notice on Recommendations on Investment Products

This notice is issued pursuant to section 58 of the Financial Advisers Act. It sets out the standards to be maintained by financial advisers and their representatives with respect to recommendations made on investment products.

For more information, click here to access the relevant section on the MAS website.

4th January 2019 – Practice note on recommendations on investment products

This practice note is issued pursuant to section 64 of the Financial Advisers Act [“FAA”] to provide guidance to financial advisers and their representatives in respect of their provision of recommendation on a specified investment product that is neither listed for quotation nor quoted on a securities market or futures market to a client.

For more information, click here to access the relevant section on the MAS website.

4th January 2019 – Notice on the sale of investment products

The notice issued pursuant to section 101 and section 293 of the Securities and Futures Act sets out the requirements imposed on licensed persons, exempt financial institutions and their representatives in respect of dealing in specified investment products or overseas listed investment products for a customer, who is an individual and who is not an accredited investor, institutional investor or expert in dealing in units in a collective investment scheme, the units of which are excluded investment products, for a customer who is a participant of such collective investment scheme and notice on sale of investment products and responsible persons for collective investment schemes, the units of which are excluded investment products.

For more information, click here to access the relevant section on the MAS website.

4th January 2019 – Practice Note on the sale of investment products

The practice note is issued pursuant to section 321 of the Securities and Futures Act to provide guidance to licensed persons or exempt financial institutions, as well as their representatives, who carry on the regulated activity of dealing in securities, trading in futures contracts, leveraged foreign exchange trading, or any combination of these regulated activities in respect of dealing in specified investment products for a customer who is an individual and who is not an accredited investor, institutional investor or expert investor.

For more information, click here to access the relevant section on the MAS website.

2nd January 2019 – Securities and Futures (Reporting of Derivatives Contracts) (Amendment No. 2) Regulations 2018

The regulations came into operation on 1 January 2019. The regulation 9 of the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 is amended and regulation 11 is deleted and has been substituted with deferred reporting of counterparty information is substituted in the regulations.

For more information, click here to access the relevant section on the MAS website.

1st January 2019 – Guidelines on Applications for Approval of Arrangements under Regulation 32CB of the Financial Advisers Regulations

The guidelines set out the Monetary Authority of Singapore’s assessment criteria and application procedures for approval of arrangements under regulation 32CB and the authority’s supervisory expectation in relation to approved arrangements.

For more information, click here to access the relevant section on the MAS website

1st January 2019 – Financial Advisers (Amendment No. 6) Regulations 2018

The regulations came into operation on 1 January 2019.  The Financial Advisers Regulations (Rg. 2) is amended and regulation for an exemption for foreign companies providing financial advisory service under approved arrangements is inserted.

For more information, click here to access the relevant section on the MAS website.

What’s New at Argus?

Argus launches its India Business Desk.  We provide advice and practical assistance to overseas clients wishing to explore business opportunities in the Indian market. Whether you are looking at Indian markets for the first time, or are already established in India and want to grow your business, we can provide in-depth local knowledge of the markets, culture, legal systems, tax, accounting and regulatory framework. We have local experience and a strong global network to help companies maximize opportunities and create successful businesses in India.

Please connect with our Partner Toshik Doomra at toshik@argusglobal.in or call him at +91 9999107800.

Please click here for more contact details.

 

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