Singapore - MAS consults on banks' outsourcing notices

Service providers to remain out of sight, but front of mind

The Monetary Authority of Singapore (“MAS”) is consulting on proposed notices to licensed banks and approved merchant banks (together, “banks”) on their management of outsourced relevant services (“Notices”). The consultation closed on 29 January 2021. 

The Notices are the latest of the MAS’ proposals to introduce legally binding requirements on financial institutions’ management of outsourcing arrangements. These proposals have arisen from the MAS’ expectation that financial institutions are to manage outsourcing arrangements as if the services continue to be conducted by the financial institutions.