Consultation Paper on Proposed Capital Framework for Securities and Futures Intermediaries
Singapore, 3 July 2002& The Monetary Authority of Singapore ("MAS") today released a consultation paper on the proposed capital framework for capital markets services (CMS) licence holders under the Securities & Futures Act 2001 (SFA) who are not members of Singapore Exchange Securities Trading Limited (SGX-ST) and Singapore Exchange Derivatives Trading Limited (SGX-DT)1.
2 The SFA will introduce a single licensing framework for securities and futures intermediaries. A new regulatory capital regime will be introduced to complement the new licensing framework. This will be aligned with the modular nature of the CMS licence, which will permit an intermediary to provide one or different combinations of regulated activities with a single licence.
3 MAS had announced on 17 April 2002 the introduction of a risk-based capital framework for CMS licence holders, who are members of SGX-ST and SGX-DT. This current consultation details the proposed capital requirements for non-member CMS licence holders who carry out one or more of the following regulated activities under the SFA: dealing in securities; trading in futures contracts; leveraged foreign exchange trading; advising on corporate finance; fund management; securities financing; and providing custodial services for securities. The consultation paper is available on MAS' website under 'Statutes, Regulations and Notices' => Securities and Futures Act, Financial Advisers Act'.