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In line with domestic and international developments in the financial sector the Monetary Authority of Singapore (MAS) has reviewed its resolution regime and proposed certain changes to Monetary Authority of Singapore Act (Cap. 186) (MAS Act).  Such proposals, if adopted, will enable the MAS to exercise a wide range of options in dealing with financial institutions beyond banking and insurance companies.

On 26 December 2012, the MAS issued a Consultation Paper on Proposed Amendments to the Monetary Authority of Singapore Act ("Consultation Paper")  which proposes, amongst other things, to migrate the existing resolution regime in the Banking Act (Cap. 19)   (which covers banks) to the MAS Act and extend such regime to cover certain non-bank financial institutions such as licenced merchant banks, exchanges, trade repositories and clearing houses as well as finance companies and capital market service licence holders. 

The MAS proposes to retain the existing resolution regime for insurance companies in the Insurance Act (Cap.142), due to  certain aspects of such regime being unique to insurance companies.

The MAS has also outlined in the Consultation Paper proposals to adopt some of the  recommendations made by the Financial Stability Board in its Key Attributes of Effective Resolution Regimes for Financial Institutions document and to enhance the MAS’ powers to issue directions.

The MAS has invited comments on the Consultation Paper by 12 January 2013.

In this briefing we discuss MAS's proposed changes to the resolution regime for financial institutions as well as the MAS's proposal to adopt certain of the Key Attributes of Effective Resolution Regimes for Financial Institutions.

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