On October 11 2007, the Monetary Authority of Singapore (MAS) released a policy consultation paper on Amendments to the Securities and Futures Act (SFA), chapter 289 and the Financial Advisers Act (FAA), chapter 110. It also released the Draft Amendment Bills and Regulations for public comment and feedback.
The policy consultation paper covers amendments that enhance MAS' supervisory control of capital market services (CMS) and financial advisers' (FA) licence holders. In addition, the amendments enhance the responsiveness of MAS' regulatory framework for market innovation. The paper has 13 sections. Sections 1 to 12 propose the implementation of perpetual licensing for holders of CMS and FA corporate licences; they empower MAS to permit foreign regulators to inspect CMS and FA licence holders, subject to certain conditions. They extend the prohibition order regime (PO) under the SFA. They deal with the compliance arrangements of licence holders and make adjustments to some licensing exemptions. Lastly, they extend the list of fit and proper requirements. Section 13 proposes amendments to the definition of "securities" and "future contract" in the SFA and the FAA. This enables MAS to prescribe new products as securities, and to exclude others.