Singapore Minister of State Alvin Tan, representing Deputy Prime Minister and Minister-in-charge of the Monetary Authority of Singapore (MAS), Lawrence Wong, has introduced the Financial Institutions (Miscellaneous Amendments) Bill 2024 (FIMA Bill) for its First Reading in Parliament.

The FIMA Bill proposes enhancements and rationalisations of MAS' investigative, reprimand, supervisory, and inspection powers across various acts under its jurisdiction. These include the Financial Advisers Act 2001 (FAA), Financial Services and Markets Act 2022 (FSMA), Insurance Act 1966 (IA), Payment Services Act 2019 (PS Act), Securities and Futures Act 2001 (SFA), and Trust Companies Act 2005 (TCA).

The bill also includes miscellaneous amendments to certain acts under MAS' purview, which are consequential, clarificatory, technical, or aimed at updating provisions and removing administrative constraints.

Following a public consultation, MAS has incorporated relevant feedback into the FIMA Bill. The key amendments focus on four areas:

• Enhancing MAS' investigative powers – Amendments to the SFA and FAA will strengthen MAS' evidence-gathering capabilities and facilitate inter-agency coordination. These include the power to compel individuals to attend interviews, record statements, enter premises without a warrant, and obtain court warrants for seizing evidence. Similar powers will be extended to other acts including the IA, PS Act, TCA, and FSMA.
   
• Clarifying applicability of MAS' reprimand powers – The FIMA Bill clarifies that MAS can reprimand a person who was a “relevant person” (involved in regulated financial institutions) at the time of misconduct, even if they have since ceased to be so.
   
• Expanding powers for directions to capital markets services licence holders (CMSL holders) – The bill allows MAS to issue directions on standards and safeguards for CMSL holders conducting unregulated businesses, such as trading in bitcoin futures or payment token derivatives, to mitigate risks.
   
• Enhancing supervisory and inspection powers – The bill aims to align MAS' powers across various acts with those in the Banking Act 1970, including the appointment and removal of key persons, obtaining effective control, appointment of agents by foreign regulators, external auditors, and the service of documents.
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These amendments are indicative of MAS' ongoing commitment to strengthening regulatory oversight and ensuring the resilience and integrity of Singapore's financial institutions.