Financial Services and Markets Act 2022 — PART 13: CONSEQUENTIAL AND RELATED

Part of a comprehensive analysis of the Financial Services and Markets Act 2022

All Parts in This Series

1. PART 1
2. PART 2
3. PART 3
4. PART 4
5. PART 4
6. PART 5
7. PART 6
8. PART 7
9. PART 8
10. PART 9
11. PART 10
12. PART 11
13. PART 12
14. PART 13 (this article)
15. Part 7
16. PART 14
17. Part 1
18. Part 2
19. Part 3
20. Part 1
21. Part 3

Amendments under Part 13 of the Financial Services and Markets Act 2022: Key Provisions and Their Purpose

Part 13 of the Financial Services and Markets Act 2022 (FSMA 2022) introduces extensive amendments to a range of existing legislation to ensure alignment with the new regulatory framework established by the FSMA 2022. These amendments primarily update definitions, incorporate new regulatory concepts such as "prohibition orders," and adjust cross-references to reflect the restructured legal landscape governing financial services in Singapore.

The overarching purpose of these amendments is to harmonize and modernize Singapore’s financial regulatory regime, ensuring consistency and clarity across multiple statutes. This is essential to facilitate effective regulation, supervision, and enforcement under the FSMA 2022, which consolidates and updates prior financial services legislation.

"Amendment of Banking Act 1970 ... section 2(1) of the Banking Act 1970 is amended by deleting the definition of “financial holding company” and substituting the following definition: “financial holding company” means a company belonging to a class of financial institutions approved as financial holding companies under section 4 of the Financial Services and Markets Act 2022;" ... "Section 54 of the Banking Act 1970 is amended ... by inserting ... the following definition: “prohibition order” means — (a) a prohibition order made under section 68(1) of the Financial Advisers Act 2001 as in force immediately before the date of commencement of section 200(1)(b) and (2) to (7) of the Financial Services and Markets Act 2022; ... (i) a prohibition order made under section 7(1) of the Financial Services and Markets Act 2022;” ... "Disclosure is solely in connection with the transfer or proposed transfer of the business of the bank to a company under Division 2 of Part 8 of the Financial Services and Markets Act 2022..." — Part 13

Verify Section 5 in source document →

These amendments serve to update the Banking Act 1970 and other statutes by replacing outdated references and definitions with those consistent with the FSMA 2022. For example, the redefinition of "financial holding company" ensures that only companies approved under the FSMA 2022 framework are recognized as such, reflecting the new regulatory standards and supervisory expectations.

Definitions Introduced or Amended in Part 13

Part 13 introduces or revises several key definitions to align with the FSMA 2022. These definitions are foundational because they determine the scope of regulatory oversight and the applicability of various provisions across financial legislation.

Notably, the definition of "financial holding company" is updated to mean:

"“financial holding company” means a company belonging to a class of financial institutions approved as financial holding companies under section 4 of the Financial Services and Markets Act 2022;" — Section 193(1)

Verify Section 193 in source document →

This definition centralizes the approval and classification of financial holding companies under the FSMA 2022, thereby streamlining regulatory processes and ensuring uniform application of supervisory standards.

The term "prohibition order" is comprehensively defined to encompass orders made under various predecessor Acts as well as under the FSMA 2022 itself:

"“prohibition order” means — (a) a prohibition order made under section 68(1) of the Financial Advisers Act 2001 as in force immediately before the date of commencement of section 200(1)(b) and (2) to (7) of the Financial Services and Markets Act 2022; ... (i) a prohibition order made under section 7(1) of the Financial Services and Markets Act 2022;" — Section 193(6)(b)

This inclusive definition ensures continuity and legal certainty by recognizing existing prohibition orders while incorporating new orders issued under the FSMA 2022. Prohibition orders are critical enforcement tools that restrict individuals or entities from engaging in regulated activities, thereby protecting the integrity of the financial system.

Additionally, the definition of "financial institution" in the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 is amended to:

"“financial institution” has the meaning given by section 2 of the Financial Services and Markets Act 2022, and includes a VCC;" — Section 195

Verify Section 195 in source document →

Including Variable Capital Companies (VCCs) explicitly within the definition of financial institutions reflects the evolving financial landscape and ensures that anti-money laundering and counter-terrorism financing measures apply comprehensively.

Penalties and Enforcement Provisions in Part 13

While Part 13 itself does not explicitly enumerate new penalties for non-compliance, it amends existing legislation to incorporate contraventions of the FSMA 2022 as grounds for enforcement actions and criminal offences. This integration is vital to maintain the effectiveness of the regulatory regime and to deter misconduct.

For instance, section 20 of the Banking Act 1970 is amended to include contraventions of the FSMA 2022 as a basis for regulatory action:

"Section 20 of the Banking Act 1970 is amended — (b) by inserting ... the following sub-paragraph: “(x) is contravening or has contravened any provision of the Financial Services and Markets Act 2022 or any direction issued by the Authority under that Act;”" — Section 193(3)(b)(x)

Verify Section 20 in source document →

This amendment empowers the Monetary Authority of Singapore (MAS) to take supervisory or disciplinary measures against banks or financial institutions that breach FSMA 2022 provisions or directions, thereby reinforcing regulatory compliance.

Moreover, the Criminal Procedure Code 2010 is amended to include offences under the FSMA 2022, specifically section 16(4), as criminal offences:

"2A. Any offence under section 16(4) of the Financial Services and Markets Act 2022." — Section 197(a)

Verify Section 197 in source document →

This amendment facilitates prosecution and enforcement by ensuring that offences under the FSMA 2022 are recognized within the criminal justice framework, enabling appropriate penalties and deterrence.

Cross-References and Harmonization with Other Legislation

Part 13 extensively updates cross-references to other statutes to reflect the new FSMA 2022 framework. This harmonization is essential to avoid conflicts, ambiguities, and gaps in the regulatory regime.

Examples of such cross-references include:

• Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992: The definition of "financial institution" is aligned with the FSMA 2022, including VCCs.
• Companies Act 1967: References to the Monetary Authority of Singapore Act 1970 are replaced with references to the FSMA 2022 sections governing financial institutions.
• Financial Advisers Act 2001: Amendments insert references to the FSMA 2022 to ensure consistency in regulatory provisions.
• Credit Bureau Act 2016: Terminology is updated to reflect licensing under the Banking Act 1970 as amended by the FSMA 2022.
• Insolvency, Restructuring and Dissolution Act 2018: Provisions are amended to include the FSMA 2022 in relevant contexts.

"Section 2(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 is amended by deleting the definition of “financial institution” and substituting the following definition: “financial institution” has the meaning given by section 2 of the Financial Services and Markets Act 2022, and includes a VCC;" — Section 195

Verify Section 2 in source document →

"Section 8G of the Companies Act 1967 is amended by deleting the words “sections 27 and 28 of the Monetary Authority of Singapore Act 1970” and substituting the words “sections 3 and 4 of the Financial Services and Markets Act 2022”." — Section 194(1)

Verify Section 8 in source document →

"Section 2(1) of the Financial Advisers Act 2001 is amended ... by inserting ... “Financial Services and Markets Act 2022;”" — Section 200(1)(a)

Verify Section 2 in source document →

"Section 2(1) of the Credit Bureau Act 2016 is amended by deleting the words “approved as a financial institution under section 28 of the Monetary Authority of Singapore Act 1970” ... and substituting the words “licensed under the Banking Act 1970”." — Section 196(1)

Verify Section 2 in source document →

"Section 72U(3) of the Insolvency, Restructuring and Dissolution Act 2018 is amended ... by inserting ... “the Financial Services and Markets Act 2022;”" — Section 203(1)(a)

Verify Section 72U in source document →

These cross-references ensure that all relevant legislation consistently recognizes the FSMA 2022 as the primary regulatory framework for financial services, thereby enhancing legal coherence and regulatory certainty.

Conclusion

Part 13 of the Financial Services and Markets Act 2022 plays a crucial role in updating and harmonizing Singapore’s financial regulatory statutes. By revising definitions, incorporating new enforcement concepts such as prohibition orders, and updating cross-references, it ensures that the entire legislative framework is aligned with the modernized FSMA 2022 regime.

This alignment is vital for effective regulation, supervision, and enforcement, supporting Singapore’s position as a leading global financial centre with a robust and coherent legal framework.

Sections Covered in This Analysis

• Section 193(1), (3)(b)(x), (6)(b), (8)(b)
• Section 194(1)
• Section 195
• Section 196(1), (2)(b)
• Section 197(a)
• Section 199(3)(b)
• Section 200(1)(a), (1)(b)
• Section 203(1)(a)
• Part 13 (General amendments and provisions)

Source Documents

• Archived Copy — Litt Law CDN
• Original — Singapore Statutes Online

For the authoritative text, consult SSO.