Singapore tables Financial Institutions (Miscellaneous Amendments) Bill 2024

The Singapore government tabled the Financial Institutions (Miscellaneous Amendments) Bill 2024 for first reading in Parliament on 10 January. The FIMA Bill is designed to enhance and rationalise the investigative, reprimand, supervisory and inspection powers of the Monetary Authority of Singapore (MAS) across various Acts.

To strengthen MAS’ evidence-gathering powers and facilitate greater inter-agency coordination, MAS will introduce several enhancements to its investigative powers under the Securities & Futures Act 2001 (SFA) and the Financial Advisers Act 2001 (FAA), and to align by amendment the Insurance Act 1966 (IA), the Payment Services Act 2019 (PSA), the Trust Companies Act 2005 (TCA) and the Financial Services & Markets Act 2022 (FSMA), as follows:

• Power to compel individuals to attend interviews and record written statements.
• Power to enter premises without a warrant will be enhanced to allow MAS to do so without giving prior notice.
• Obtaining court warrant to enter premises and seize evidence seize evidence.
• Transfer of evidence between MAS and the Commercial Affairs Department (CAD) and Attorney-General’s Chambers (AGC).

The FIMA Bill makes it clear that MAS has powers to reprimand a person who was a “relevant person” at the time of a misconduct, even if the person has ceased to be a “relevant person”

The FIMA Bill will allow MAS to issue written directions on the minimum standards and safeguards that should be in place when capital markets services licence (CMSL) holders and their representatives conduct unregulated businesses.

MAS will enhance its supervisory and inspection powers under the SFA, FAA and TCA, to ensure that it has consistent powers across these Acts and to align with the Banking Act 1970 in the following areas:

• Appointment and removal of key persons.
• Obtaining effective control.
• Appointment of agents by foreign regulators.
• Appointment of external auditors.
• Failure to exercise reasonable care in submission of information.
• Service of documents.

The FIMA Bill is expected to be passed by Parliament and come into force in the second half of 2024.