On June 23, 2015, the Monetary Authority of Singapore (MAS) released its Consultation Paper on Proposed Enhancements to Resolution Regime for Financial Institutions in Singapore. In the paper, MAS proposed enhancements to the resolution regime in Singapore by strengthening its powers to resolve distressed institutions while maintaining continuity of their critical economic functions. Among other topics, the policy proposals cover: (i) Recovery and resolution planning; (ii) Temporary stays and suspensions; (iii) Statutory bail-in powers; (iv) Cross-border recognition of resolution actions; (v) Creditor safeguards; and (vi) Resolution funding.
The proposed policy changes will be introduced primarily through amendments to the MAS Act, supported by the necessary regulations. MAS will also consult on the legislative amendments, after considering the feedback received on the policy proposals in this consultation. The submission deadline for comments on the proposal is July 22, 2015.
The full text of the MAS consultation paper is available at: http://www.mas.gov.sg/~/media/MAS/News%20and%20Publications/Consultation%20Papers/23%20Jun%202015% 20Consultation%20on%20Enhancements%20to%20Resolution%20Regime%20for%20FIs%20in%20Singapore.pdf.