The Financial Services and Markets Act (FSMA) was passed in Parliament on 5 April 2022. The FSMA is expected to be implemented in phases, with the first phase having commenced on 28 April 2023.
The FSMA is the Monetary Authority of Singapore’s (MAS) omnibus act for the sector-wide regulation of financial services and markets and was put in place to enhance the MAS’ agility and effectiveness in addressing financial sector-wide risks. The first phase sees the porting over of provisions imposing requirements on different classes of financial institutions from the Monetary Authority of Singapore Act 1970. These provisions relate to:
- General powers over financial institutions, including inspection powers, offences and other miscellaneous provisions;
- Anti-Money Laundering/ Countering the Financing of Terrorism Framework; and
- Financial Dispute Resolution Schemes framework.
This will go towards MAS’ objective of consolidating some of the MAS’ powers which are currently spread across various Acts in order to enhance its agility and effectiveness in addressing financial sector-wide risks in an environment that is dynamic, rapidly evolving and increasingly integrated.
The remaining phases are targeted to be implemented between 2H 2023 and 2024 and will involve provisions which will enhance the regulation of virtual asset service providers and also provide the MAS with a harmonised and expanded power to issue prohibition orders.