Dear Sir/Madam
The MAS has recently completed a major review of our S$ non-internationalisation policy. In this review, we have reaffirmed the basic thrust of our non-internationalisation policy, as well as identified several major areas for further liberalisation in order to facilitate the growth and development of Singapore's capital markets.
2 As part of the liberalisation measures, MAS has issued, with effect from today, an MAS Notice 1201 for securities dealers in Singapore. This Notice sets out the underlying rationale of the S$ non-internationalisation policy, as well as guidelines pertaining to specific S$ financial activities with non-residents.
3 Pursuant to the revised S$ policy under the MAS Notice 1201, foreign securities dealers in Singapore are now deemed as "residents". They will be able to obtain freely S$ funding to finance their capital market activities in Singapore. They will also be able to transact freely S$ financial derivative products with other financial institutions in Singapore that are regulated by MAS Notice 1201 or its equivalent.
4 A copy of the MAS Notice 1201 is enclosed. It is also available for download at the MAS website. Pursuant to Section 33A of the Securities Industry Act (Cap 289), securities dealers are required to observe the guidelines stipulated under MAS Notice 1201. If you have any enquiries, please direct them to the Monetary Management Division, MAS at telephone number 6229 9150 or facsimile number 6229 9491.
Yours faithfully,
ONG CHONG TEE
EXECUTIVE DIRECTOR
MARKETS AND INVESTMENTS
Click here to view MAS Notice 1201.
1 MAS' Directive on Housing Loans dated 17 May 1996 still applies.
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