1 Minister of State for Foreign Affairs and National Development, Mr Alvin Tan, on behalf of Deputy Prime Minister and Minister for Trade and Industry (Trade), as Minister-in-charge of the Monetary Authority of Singapore (“MAS”), Mr Gan Kim Yong, today moved the Financial Services and Markets (Amendment) Bill 2026 (the “Bill”) for First Reading in Parliament.

2 The Bill seeks to empower MAS to impose on systemically important financial institutions (“FIs”) the requirement to maintain a minimum level of total loss-absorbing capacity (“TLAC”). This will complement MAS’ existing power to bail in subordinated debt and eligible senior unsecured debtFor instance, they must contain contractual bail-in clauses and meet all other eligibility criteria for inclusion as TLAC. to bolster the solvency of a distressed FI.

3 MAS conducted public consultations on the TLAC amendments in the Bill from May 2026 to June 2026. Comments received have been considered and incorporated, where appropriate, in the Bill.

KEY AMENDMENTS IN THE BILL

4 The Bill inserts a new Division 3 in Part 7 of the Financial Services and Markets Act 2022 (“FSM Act”) to empower MAS to impose TLAC requirements on Division 6 financial institutions“Division 6 financial institutions” has the meaning given by section 80(1) of the FSM Act.. Where notified, such FIs will be required to maintain a minimum level of TLAC.

5 The Bill also includes technical amendments to the FSM Act for alignment with updated Financial Action Task Force (“FATF”)The FATF is an intergovernmental task force that sets the international standards for combatting money laundering, terrorism financing and proliferation financing. Singapore has been a member of the FATF since 1992. Standards relating to countering the financing of proliferation of weapons of mass destruction, and consequential and related amendments to other Acts within MAS’ purview.

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