GEIS-新闻详情

MAS proposes to widen investigative powers over financial services sector with new Bill

2024-01-10 00:00:00.0 海峡时报-新加坡原网页

SINGAPORE – The Monetary Authority of Singapore (MAS) could get wider investigative powers over the financial sector under a new Bill introduced in Parliament on Jan 10.

The regulator said the legislation will allow it to strengthen its evidence-gathering powers and facilitate greater coordination between agencies.

The proposed law would extend its existing powers in several parts of the financial industry to the broader sector, including being able to compel individuals to attend interviews and record written statements.

Its power to enter premises without a warrant will also be enhanced so MAS will not have to give prior notice if there are reasonable grounds to suspect that the premises are or have been occupied by people being investigated in relation to a contravention.

The regulator will also have wider power across the industry to obtain a court warrant to enter premises and seize evidence when a person has failed to comply with an order to produce information, or when evidence may be destroyed or tampered with.

Provisions that enable evidence to be transferred between MAS and the Commercial Affairs Department (CAD) or the Attorney-General’s Chambers (AGC) will also be expanded.

This will allow MAS to use evidence obtained by other agencies for investigations and other action. CAD and AGC will be able to use evidence gathered when MAS exercises its investigative powers for criminal proceedings.

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The proposed law also makes it clear that MAS may reprimand someone deemed a “relevant person” at the time of a misconduct, even if the person has ceased to be designated as such since the misconduct happened. They might no longer be employed by a financial institution, for example.

Such a person refers to financial institutions regulated by MAS under the Securities and Futures Act, Financial Advisers Act and Trust Companies Act, or employees, officers, partners or representatives of these institutions.

The Bill also expands MAS’ power to issue directions to capital markets services licence holders that conduct unregulated business, such as offering Bitcoin futures and other payment token derivatives traded on overseas exchanges. These unregulated businesses could pose risks, it said, noting: “Losses from unregulated businesses could adversely affect a capital markets services licence holder’s ability to meet its obligations to customers in its regulated activities.”

The Bill would allow MAS to issue directions on the minimum standards and safeguards that should be in place when capital markets services licence holders and their representatives conduct unregulated businesses.

The proposed law will also enhance MAS’ supervisory and inspection powers. These cover areas such as the appointment and removal of key persons such as chief executives, and the appointment of agents by foreign regulators to inspect certain financial institutions.