On 24 January 2025, the second tranche of provisions of the Financial Institutions (Miscellaneous Amendments) Act 2024 (“FIMA“) came into effect. The FIMA enhances and streamlines MAS’ investigative, reprimand, supervisory and inspection powers across various MAS-administered Acts, namely the Financial Advisers Act 2001 (“FAA“), the Financial Services and Markets Act 2022, the Insurance Act 1966, the Monetary Authority of Singapore Act 1970, the Payment Services Act 2019, the Securities and Futures Act 2001 (“SFA“) and the Trust Companies Act 2005 (“TCA“).
Key changes include:
- Extended scope of change-of-control approval requirements. Previously, the requirement for persons to obtain MAS’ approval before acquiring control of capital markets financial institutions (“FIs“) which was generally applicable did not extend to locally incorporated recognised market operators, recognised clearing houses, and approved trustees. FIMA extends the approval requirements for these entities as well.
- Timing for obtainment of change-of-control approval. MAS’ approval of potential acquirers of capital markets FIs would only be required to be obtained before the potential acquirer obtains control of the regulated entity.
- Enhancements to MAS’ investigative powers, which include giving MAS the power to:
- require individuals to attend interviews and record written statements providing information;
- enter premises without a warrant where it has reasonable grounds to suspect that the premises are, or have been, used by a person being investigated by MAS;
- obtain a court warrant to seize evidence, including electronic evidence, from premises (i) when a person has failed to comply with an order to produce such evidence; or (ii) if there is a risk that evidence will be destroyed or tampered with if an order for the production of such evidence is made; and
- transfer evidence to the Police or the Public Prosecutor and vice versa to facilitate greater inter-agency coordination in criminal investigations and regulatory actions.
- Clarification of MAS’ reprimand powers even where a person has left an FI or the financial industry.
- Empowering MAS to issue written directions on the minimum standards and safeguards that should be in place to regulated FIs which conduct unregulated activities such as offering products that are not regulated by MAS (e.g. bitcoin futures and other payment token derivatives traded on overseas exchanges).
- Enhancements to MAS’ 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.
For more information, please see our February 2024 NewsBytes article titled “Bill Enhancing MAS Investigative, Supervisory and Inspection Powers Passed“, discussing the Act when it was passed. The consultation paper on the Act may be accessed here.
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