Media Releases
 Published Date: 25 September 2003

MAS Releases Consultation Paper on Amendments tothe Securities and Futures Act and Financial Advisers Act



Singapore, 25 September 2003...The Monetary Authority of Singapore (MAS) today released a consultation paper on a number of policy reforms that have general application to the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA), and invites comments from the public. 

The consultation is part of the second phase of amendments, targeted for the second half of 2004.  The amendments will implement several policy reforms, as part of MAS' efforts to keep our regulatory framework responsive and conducive to developments in the capital markets. 

The topics covered in the consultation include:

  • Introducing additional exemptions from the prospectus requirements under Part XIII of the SFA;
  • Re-examining the prospectus liability for underwriters and other professionals; 
  • Refining the legislative framework for markets and clearing facilities in the SFA; 
  • Reviewing the product scope of the FAA to include structured deposits and over-the-counter derivatives;
  • Exempting from the requirement for a reasonable basis in respect of generally circulated advice;  
  • Exempting financial advisers from business conduct requirements when dealing with overseas investors, subject to certain safeguards; and
  • Rationalising the regulatory categories of non-retail investors in the SFA and FAA.

MAS will take into consideration comments received during the consultation to prepare the relevant Amendment Bills.  The draft Bills will be available for comment at a later date.

The consultation paper is posted on the MAS website, www.mas.gov.sg.  MAS requests that comments be submitted by 3 November 2003.  

Annex 1:  Policy Consultation on Amendments to the SFA and FAA (183.5 KB) 

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Notes to the editors:

1.  On 2 September 2003, Parliament passed the Securities and Futures (Amendment) Bill 2003 and Financial Advisers (Amendment) Bill 2003, which comprised amendments for the first phase of the legislative reform.  The intent behind the legislative amendments was to implement the recommendations of the Company Legislation and Regulatory Framework Committee on the fund raising provisions in the SFA, as well as to fine-tune the SFA and the FAA, taking into account MAS' operational experience and market feedback.