From 23 June 2015 to 22 July 2015, the Monetary Authority of Singapore (the “MAS”) sought feedback on proposed enhancements to the resolution regime for financial institutions (“FIs”) in Singapore as set out in the Consultation Paper on “Proposed Enhancements to Resolution Regime for Financial Institutions in Singapore”.
Proposals are made in the following areas:
- Recovery and resolution plans
- Temporary stays on early termination rights on financial contracts
- Temporary suspension and stay on insurance contracts
- Ensuring continuity of essential services and functions
- Statutory bail-in regime
- Cross-border recognition of resolution actions
- Creditor compensation framework
- Resolution funding
The current exercise follows the expansion of the MAS’ powers under the Monetary Authority of Singapore Act in April 2013 to cover a wider range of FIs, and to effect measures such as the compulsory transfer of an FI’s business or the compulsory restructuring of an FI’s share capital. The MAS had taken these measures guided by the Key Attributes of Effective Resolution Regimes for Financial Institutions adopted by the Financial Stability Board.
The Consultation Paper is the result of a further review of Singapore’s resolution regime, conducted by the MAS in light of recent global developments.