Enhancements to Resolution Regime of Financial Institutions in Singapore - From a Capital Markets and Derivatives Perspective

On 4th July 2017, the Monetary Authority of Singapore (Amendment) Bill 2017 (the “Bill”) was passed in Parliament to enhance the existing powers of the Monetary Authority of Singapore (“MAS”) to resolve non-viable financial institutions (“FIs”) in an orderly manner. This was followed by the release by MAS of a monograph in August 2017 which sets out MAS’ approach to resolution of FIs in Singapore (the “Monograph”). In the Monograph, MAS highlighted that its overarching objective is to achieve an orderly resolution when a FI is no longer viable, such that financial stability and the continuity of critical functions performed by FIs and financial market infrastructures (“FMI”s) are maintained.

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