On 29 July 2014, the Monetary Authority of Singapore (the "MAS") issued a consultation paper setting out the draft amendments to the Securities and Futures Act (the "SFA") to implement the regulatory framework for financial benchmarks. When the new regime comes into force, the setting of Singapore Interbank Offered Rate ("SIBOR") and Swap Offer Rate ("SOR") will be regulated.
All comments on the "Consultation Paper on Proposed Amendments to the Securities and Futures Act on Regulation of Financial Benchmarks" must be submitted to the MAS by 29 August 2014.
The key features of the proposed regulatory framework for financial benchmarks include:
- adopting a "designation approach" to regulate the setting of designated financial benchmarks;
- licensing the entities administering a designated financial benchmark (the "Administrators");
- introducing an authorisation regime for entities involved in providing information relating to a designated financial benchmark to an Administrator; and
- making the manipulation of any financial benchmark a market misconduct offence that attracts criminal or civil penalty sanctions.
The current consultation exercise follows from an earlier MAS consultation paper that was issued in June 2013 to seek comments on broad policy issues concerning the proposed regulatory framework for financial benchmarks (the "2013 Consultation"). On 29 July 2014, the MAS issued its response to feedback received from the 2013 Consultation.
The following materials are available from the MAS website www.mas.gov.sg:
- Press Release
- Consultation Paper
- Annex 1 - Draft Amendments to Section 2 of the SFA
- Annex 2 - New Part VIAA (Designation of Financial Benchmark and Administrator Licensing)
- Annex 3 - New Part VIAA (Submitter Authorisation)
- Annex 4 - New Part VIAA (General Powers)
- Annex 5 - New Part VIAA (Power to Direct Submissions)
- Annex 6 - Draft Amendments to Parts IX, X and XII
- Annex 7 - Draft Consequential Amendments to the SFA
- Response to Consultation Paper on Proposed Regulatory Framework for Financial Benchmarks