Media Releases
 Published Date: 08 August 2002

MAS Issues Transitional Provisions For Insurance and Capital Market Intermediaries



Singapore 8 August 2002. The Monetary Authority of Singapore (MAS) today issued transitional regulations under the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA). The regulations set out procedures for migration to the new SFA and FAA regulatory framework of intermediaries registered and licensed under the Insurance Intermediaries Act (IIA), Securities Industry Act (SIA) and the Futures Trading Act (FTA).

2   The SFA and the FAA will be fully implemented by the end of September 2002. MAS will be informing intermediaries about their migration to the SFA and the FAA and the treatment of outstanding licence applications. Details of the transitional arrangements can be found on MAS' website www.mas.gov.sg. The transitional arrangements issued today pertain to:

  • Securities and Futures (Capital Markets Services Licence and Representative's Licence) (Transitional and Savings Provisions) Regulations 2002.

Financial Advisers (Transitional and Savings Provisions) Regulations 2002

3   The SFA and FAA were passed by Parliament in October 2001.  MAS has been implementing the SFA in stages. 

4   The first 2 stages which included Parts VIII, XIII and XV on Take-over Offers, offers of shares, debentures and collective investment schemes, and MAS' supervisory and enforcement powers have been implemented.  The third stage covers the remaining parts of the SFA that includes the licensing of intermediaries, approval of exchanges and clearing houses, risk-based capital requirements and market conduct, and the subsidiary legislation under these parts.  Drafting of this subsidiary legislation is currently being finalised.

***

Note to Editors:

Parliament passed the SFA in October 2001.  MAS has been implementing the new legislation in stages. Part I (Preliminary), Part VIII (Securities Industry Council and Take-over Offers), Part IX (Supervision and Investigation), Part X (Assistance to Foreign Regulatory Authorities) and Part XV (Miscellaneous; except sections 314 and 342(1) and (3)) came into effect on 1 Jan 2002, and Part XIII (Offers of Investments) came into effect on 1 Jul 2002. 

The remaining Part II (Markets), Part III (Clearing Facilities), Part IV (Capital Markets Services Licence and Representative's Licence), Part V (Books, Customer Assets and Audit), Part VI (Conduct of Business), Part VII (Disclosure of Interests), Part XI (Investor Compensation Scheme), Part XII (Market Conduct), Part XIV (Appeals) and sections 314 and 342(1) and (3), along with the regulations/subsidiary instruments that are now being drafted, will be implemented by the third quarter of this year. 

***