On March 7, Singapore's Parliament passed the Financial Institutions (Miscellaneous Amendments) Act (FIMA Act), giving the Monetary Authority of Singapore (MAS) broader powers of investigation and supervision of the financial industry.。

The bill extends the existing powers of MAS in certain financial sectors today and aims to coordinate and strengthen MAS's enforcement capabilities to better maintain order in Singapore's capital markets.。The powers cover six areas: financial services and markets, insurance, payment services, financial advisory, securities and derivatives industries, and trust companies.。

Alvin Tan, Minister of Trade and Industry and Minister of Culture, Community and Youth, said: "As the scale and complexity of our financial industry increases, MAS must continually review and strengthen its regulatory scope and capabilities to ensure that it can more effectively manage and supervise financial institutions and investigate and punish misconduct in the industry.。"

Power Upgrade Maintains Capital Market Order

Expansion of investigative powers

The bill proposes to strengthen or expand some of MAS's existing programs under the Securities and Futures Act of 2001 (SFA) and the Financial Advisers Act of 2001 (FAA).。It also aims to strengthen and align the central bank's investigative powers in all other regulatory acts, namely the Financial Services and Markets Act 2022 (FSMA), the Insurance Act 1966 (IA), the Payment Services Act 2019 (PS Act) and the Trust Companies Act 2005 (TCA).。

In order to strengthen the evidence-gathering powers of the MAS and promote greater inter-agency coordination, the bill amends the scope of application of the existing Financial Advisers Act, the Financial Services and Markets Act, the Insurance Act, the Payment Services Act, the Securities and Futures Act and the Trust Companies Act, extending the investigative powers of the MAS to all six bills.。

Under one of the amendments, MAS can, under certain conditions, enter premises without a search warrant or prior notice to conduct an investigation, helping to reduce the risk of suspects destroying evidence.。In addition, MAS can enforce mandatory interviews and written statement records for individuals, but only in certain areas of the industry, such as financial advisory services and the securities and derivatives industry.。

Regulatory power strengthened

Following the implementation of the Act, MAS will be able to issue legally binding instructions to holders of capital market services licences conducting unregulated business, such as Bitcoin futures and other payment token derivatives traded on overseas exchanges, setting out the minimum standards and safeguards to be applied by licensees and their representatives in conducting unregulated business.。

In addition, the MAS will have the power to appoint and remove key figures such as CEOs, appoint external auditors, and appoint agents to inspect certain financial institutions by foreign regulators.。If someone behaves improperly while in office, the MAS may condemn his misconduct even if he has left the financial institution or financial industry he serves.。

Decentralization provokes controversy Lawmakers express concern

After the bill was released and passed by Congress, many members of Congress, while expressing support, also expressed concern about the expansion of MAS powers。

Councillor Edward Chia said: "We must acknowledge and actively address these issues, explain the need for these powers, and explain why MAS cannot simply apply for a search warrant to enter.。In his view, such measures are not common in other financial centres such as Hong Kong, and safeguards against abuse of power are key to putting them into practice.。

In response, Minister Chen Shenghui stressed that while legitimate financial institutions may seek cooperation by providing key evidence to MAS, the potential for non-cooperation by suspects increases the likelihood of destroying or concealing evidence.。To avoid this, MAS wants the court to cede some of its powers to simplify the approval process for MAS enforcement, while safeguards include "MAS must give two days' notice before entering the premises without a search warrant."。

Minister Chen Shenghui also added some examples of other countries in the world where premises can be accessed without a search warrant - such as the exemption initiatives of financial regulators in the UK, Australia and Canada in specific cases such as anti-money laundering investigations - and that the expansion of MAS's powers is unlikely to affect Singapore's competitiveness as a financial centre, as certain bills already provide for regulators' access to relevant premises.。