On June 23, 2015, the Monetary Authority of Singapore (MAS) published a consultation paper entitled “Consultation on Enhancements to Resolution Regime for Financial Institutions in Singapore” (the Consultation Paper), which sets out proposals to strengthen the resolution regime for financial institutions in Singapore.
The proposals take into account the Key Attributes of Effective Resolution Regimes for Financial Institutions adopted by the Financial Stability Board. The MAS’ policy intent is to apply recovery and resolution planning requirements to financial institutions that are systemically important to Singapore or that maintain critical functions.
The proposed policy changes will be effected primarily through amendments to the MAS Act and supported by necessary accompanying regulations.
This briefing sets out the key proposals in the Consultation Paper that would affect fund managers who are Capital Markets Services (CMS) license holders in Singapore (Please note that proposals affecting other types of financial institutions are outside the scope of this briefing).
Key proposals in the Consultation Paper
A summary of the key proposals in the Consultation Paper is set out below.
|Resolution Regime For CMS License Holders in Singapore|
|Recovery and resolution plans (RRPs)||
|Temporary stays on early termination rights on financial contracts||
|Ensuring continuity of essential services and functions||
|Statutory bail-in regime||
|Resolution funding arrangements||