Financial Sector-wide Legislation

Omnibus Financial Services and Markets Act (FSMA)

5 April 2022

The FSMA was passed in Parliament, to enable and empower MAS to respond more effectively to the opportunities and challenges posed by a dynamic and rapidly evolving financial sector, and position Singapore as a safe, trusted and innovative global financial centre. 

There are four key aspects to the Act: 

1. First, it provides MAS with broader powers to issue prohibition orders, which enables MAS to better protect the financial industry from bad actors.
2. Second, it sets out a harmonised power to impose technology risk management requirements and increases the maximum penalty for a breach of such requirements to S$1 million. This will bolster the security and resilience of financial services and public confidence in our financial sector.
3. Third, it further aligns Singapore with the revised international standards for money laundering and terrorist financing risks posed by digital token service providers, and helps to safeguard Singapore’s reputation as a safe and sound financial centre.
4. Fourth, it offers statutory protection for liability for personnel of an operator of a dispute resolution scheme, which in turn strengthens the confidence and autonomy of these individuals when they carry out their duties.