Edward Chia on Financial Institutions (Miscellaneous Amendments) Bill

The Financial Institutions (Miscellaneous Amendments) Bill is a step towards reinforcing the robustness of Singapore’s financial system, but its measures must be implemented with precision and in consultation with stakeholders, said MP Edward Chia in Parliament on Thursday (Mar 7). He said financial institutions will compare the new measures with those in other global financial hubs and to remain competitive, Singapore must thoroughly explain its rationale and why these changes will ultimately prove advantageous for legitimate institutions. Mr Chia noted that the Bill is wide-ranging, essentially impacting the entire spectrum of financial regulations, and grants the Monetary Authority of Singapore (MAS) powers - specifically, to enter premises without a warrant. He said there has been “a palpable sense of concern” over this, which MAS must proactively address - adding that such a measure is not common in other financial hubs such as Hong Kong. The Bill also enables MAS to approve the appointment of agents by foreign regulators to conduct inspections of financial institutions. Mr Chia asked if they will also be able to operate without a warrant, whether the arrangement is reciprocal and how this will impact Singapore’s jurisdictional autonomy. He also raised concerns over issuing directions on risk mitigation of unregulated business activities for capital markets services licence holders and extending MAS’ authority over the appointment and removal of key personnel such as CEOs and directors.