The Financial Services and Markets (Amendment) Bill 2026 (“Bill“), introduced in Parliament on 8 September 2026, was passed on 6 October 2026. The Bill seeks primarily to: (i) empower the Monetary Authority of Singapore (“MAS“) to impose total loss‑absorbing capacity (“TLAC“) requirements on certain financial institutions (“FIs“); and (ii) expressly provide for the prevention of the financing of the proliferation of weapons of mass destruction (“proliferation financing“).
The Bill also introduces related amendments to the Banking Act 1970, the Financial Advisers Act 2001, the Financial Holding Companies Act 2013, the Insurance Act 1966, the Securities and Futures Act 2001, the Trust Companies Act 2005, and the Variable Capital Companies Act 2018.
The Bill follows MAS’ public consultation conducted from May to June 2026. In its Explanatory Brief (link provided below), MAS stated that feedback received during the consultation had been considered and incorporated into the Bill where appropriate.
The amendments are intended to enhance the resilience of Singapore’s financial system, align its anti-proliferation financing framework with evolving international standards, and reinforce Singapore’s position as a trusted international financial centre.
MAS Empowered to Impose TLAC Requirements
The amendments to the Financial Services and Markets Act 2022 (“FSMA“) empower MAS to impose TLAC requirements on systemically important FIs. The measure complements MAS’ existing powers to bail in subordinated debt and eligible senior unsecured debt to support the solvency of a distressed FI.
Under the TLAC framework, systemically important FIs will be required to maintain additional eligible loss-absorbing instruments and other financial resources. Among other things, MAS may, by written notice, specify: (i) the level of TLAC that a systemically important FI must maintain; (ii) the criteria that an eligible instrument must satisfy to qualify as a loss-absorbing instrument; and (iii) the types of financial resources that may be recognised as part of the FI’s TLAC. MAS may also require such FIs to publicly disclose information relating to their TLAC requirements.
Proliferation Financing
The Bill also introduces technical amendments to the FSMA to align the Act with updated Financial Action Task Force (FATF) Standards. Specifically, the amendments provide that MAS’ supervision of FIs encompasses proliferation financing risks, alongside money laundering and terrorism financing risks. MAS may also assist domestic authorities and foreign counterpart authorities in their supervision of proliferation financing risks.
Click on the following links for more information (available on the MAS website at www.mas.gov.sg):
- “Financial Services and Markets (Amendment) Bill” – Second Reading Speech by Mr Alvin Tan, Minister of State for Foreign Affairs and National Development, and Board Member of the Monetary Authority of Singapore (MAS), on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), and Chairman of MAS, on 6 October 2026
- Explanatory Brief: Financial Services and Markets (Amendment) Bill 2026
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