Media Release for the Implementation of the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations 2002

Singapore 24 September 2002. The Monetary Authority of Singapore (MAS) today announced the issuance of subsidiary legislation under the Securities and Futures Act 2001, to implement the new risk-based capital requirements for holders of Capital Markets Services (CMS) Licences with effect from 1 October 2002.  This follows MAS' earlier announcement on 11 September 2002 on the implementation of the final phase of the Securities and Futures Act (SFA) on 1 October 2002.

2   The Securities And Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations 2002 (Regulations) sets out the base capital requirements for the grant or renewal of a CMS Licence to any corporation under Part 4 of the SFA. The Regulations also introduces a risk-based capital regime for holders to deal in securities or trade in futures contracts as a member of a securities exchange, futures exchange or clearing house; streamline capital requirements for other classes of holders, as well as set out margin requirements for holders providing securities financing. 

3   Existing holders of licences issued under the Securities Industry Act (Cap. 289) and Futures Trading Act (Cap. 116) will have a grace period to comply with the new financial requirements. In the case of existing dealers and futures brokers who are members of a securities exchange, futures exchange or clearing house, for whom comprehensive changes are being made, the grace period will be 12 months. For other existing licence holders, namely investment advisers, futures trading advisers and futures pool operators, which will experience less significant changes, the grace period will be six months.

4   Please refer to the MAS website after 5pm today for the Regulations (458.9 KB) .

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