On 9 October 2021, the Monetary Authority of Singapore (“MAS“) put in place an exemption framework to exempt the foreign head offices or branches (“FOs“) of relevant financial institutions in Singapore (“Singapore FIs”) conducting capital markets services and/or financial advisory services from applicable business conduct and representative notification requirements when the FOs conduct business in Singapore, subject to boundary and notification conditions (“Branch Framework“). The Branch Framework aims to level the playing field between FOs and foreign-related corporations of the Singapore FIs (“FRCs“) which provide cross-border financial services in Singapore under a MAS approved arrangement with the Singapore FI (“FRC Framework“).
At the same time, the FRC Framework has been streamlined, moving away from the case-by-case approval approach to an ex-post notification approach. Before 9 October 2021, FRCs have to be approved by MAS to operate under the FRC Framework so that they are exempted from the licensing and applicable business conduct requirements under the Securities and Futures Act and Financial Advisers Act.
This Update provides an overview of the: (i) scope and boundary conditions under the new Branch Framework and revised FRC Framework; (ii) notification requirement for cross-border arrangements under the Branch Framework and the FRC Framework; and (iii) on-going requirements in relation to the Singapore FI’s cross-border arrangements with its FOs and FRCs (including anti-money laundering and countering of the financing of terrorism (AML/CFT) requirements).
For more information, click here to read the full Legal Update.
