Announcement on the Regulatory Oversight of Commodity Futures

1.1 The Monetary Authority of Singapore [“MAS”] published today the following Regulations and Notices under the Securities and Futures Act [“SFA”], as well as the Financial Advisers Act [“FAA”]:

• Financial Advisers (Provisions for Persons and Matters Previously Regulated under Commodity Trading Act) Regulations 2007 (PDF, 13 KB) - to come into effect on 27 August 2007;
  
  
• Securities and Futures (Provisions for Persons and Matters Previously Regulated under Commodity Trading Act) Regulations 2007  (PDF, 31 KB) - to come into effect on 27 August 2007;
  
  
• Securities and Futures (Prescribed Futures Contracts) (Amendment) Regulations 2007 (PDF, 7KB- to come into effect on 27 February 2008;
  
  
• Securities and Futures (Financial and Margin Requirements for Holders of CMS Licences) (Amendment) Regulations 2007 (PDF, 20 KB) - to come into effect on 27 February 2008;
  
  
• Securities and Futures (Markets) (Amendment No. 2) Regulations 2007 (PDF, 7 KB) - to come into effect on 27 February 2008;
  
  
• Notice on Minimum Entry and Examination Requirements for Representatives of Holders of Capital Markets Services Licence and Exempt Financial Institutions under the SFA [Notice No. SFA 04-N06] (PDF, 90 KB) - Last revised on 31 December 2007; and  
  
  
• Notice on Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers [Notice No. FAA-N07] (PDF, 107 KB) - Last revised on 31 December 2007.

1.2 Together with the legislative amendments made by the Commodity Trading (Amendment) Act 2007^[1], these Regulations and Notices implement the policies and procedures described by MAS and International Enterprise Singapore [“IE”] in a 20 November 2006 public consultation paper^[2] and the responses to this consultation released on 13 July 2007^[3].  Among others, these Regulations and Notices set out the transitional arrangements for persons and matters relating to commodity futures that were previously regulated under the Commodity Trading Act [“CTA”]. 

1.3 With the publication of these Regulations, MAS will assume the regulatory oversight of commodity futures from IE on 27 February 2008. We would like to highlight to affected persons that certain applications will have to be made to MAS prior to this date, the specific details of which are set out in the relevant Regulations.

1.4 A consultation paper has also been released on the review of capital requirements for brokers trading only in commodity futures. Please click here for the consultation paper.