The Monetary Authority of Singapore (“MAS“) is consulting on an exemption framework to exempt the foreign head offices or branches (collectively, “Foreign Offices“) of financial institutions in Singapore (“Singapore FIs“) from applicable business conduct and representative notification requirements when they serve Singapore customers, subject to boundary and notification conditions (“Branch Framework“). The consultation ends on 15 April 2021.
The proposal aims to level the playing field between the Foreign Offices and foreign-related corporations of the Singapore FIs (“FRCs“) which are providing cross-border financial services to customers in Singapore under the FRC framework. Currently, FRCs that have been approved by MAS to operate under the FRC framework are exempt from licensing and the applicable conduct requirements. In 2020, MAS announced that it will move the approval approach under the FRC framework to an ex-post notification approach. However, the ex-post notification FRC framework does not apply to Foreign Offices. This means that the Foreign Offices and their representatives serving Singapore customers will continue to be subject to the business conduct requirements in the Securities and Futures Act and Financial Advisers Act.
Therefore, MAS is proposing the Branch Framework that is similar to the ex-post notification FRC framework to address this issue.
This Update provides an overview of: (i) the proposed Branch Framework and the boundary conditions and notification requirement thereunder; and (ii) the details for operationalising the proposed Branch Framework and the ex-post notification FRC framework.
For more information, click here to read the full Legal Update.
