Financial Services and Markets Act 2022 — Part 7: or 8 or section 189 of the Financial Services and Markets Act 2022;

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
15. Part 7 (this article)
16. PART 14
17. Part 1
18. Part 2
19. Part 3
20. Part 1
21. Part 3

Amendments Aligning Legislation with the Financial Services and Markets Act 2022

The Financial Services and Markets Act 2022 (FSMA 2022) represents a comprehensive overhaul of Singapore’s financial regulatory framework. To ensure coherence and legal consistency, several existing statutes have been amended, repealed, or supplemented. These amendments primarily serve to align definitions, regulatory powers, and enforcement mechanisms with the FSMA 2022, thereby streamlining the regulatory landscape and enhancing the Monetary Authority of Singapore’s (MAS) supervisory capabilities.

"Section 36 of the Insurance Act 1966 is amended..." — Section 204(1)

Verify Section 3 in source document →

"Section 65 of the Insurance Act 1966 is amended..." — Section 204(2)

Verify Section 6 in source document →

"Section 74 of the Insurance Act 1966 is repealed." — Section 204(3)

Verify Section 7 in source document →

"Section 23(7A) of the Monetary Authority of Singapore Act 1970 is amended..." — Section 205(1)

Verify Section 23 in source document →

"Section 2(1) of the Mutual Assistance in Criminal Matters Act 2000 is amended..." — Section 206(1)

Verify Section 2 in source document →

These amendments exist to remove outdated provisions and references that conflict with or duplicate the FSMA 2022. For example, the repeal of Section 74 of the Insurance Act 1966 eliminates redundant regulatory orders that are now governed under the FSMA 2022. Similarly, amendments to the Monetary Authority of Singapore Act 1970 enhance MAS’s powers to recover fees and enforce compliance under the new regime.

Comprehensive Definition of “Prohibition Order” and Its Regulatory Significance

A pivotal feature of the amendments is the detailed definition of “prohibition order.” This term is crucial because it encapsulates the various regulatory orders that restrict individuals or entities from carrying out certain financial activities. The definition harmonises orders made under multiple statutes, ensuring clarity and uniformity in enforcement.

"“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; (b) 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, and as continued by section 217(2) of the Financial Services and Markets Act 2022; (c) an order made under section 74(1) as in force immediately before the date of commencement of section 204(1) to (4) of the Financial Services and Markets Act 2022; (d) an order made under section 74(1) as in force immediately before the date of commencement of section 204(1) to (4) of the Financial Services and Markets Act 2022, and as continued by section 218(2) of the Financial Services and Markets Act 2022; (e) a prohibition order made under section 101A(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022; (f) a prohibition order made under section 101A(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022, and as continued by section 220(3) of the Financial Services and Markets Act 2022; (g) a prohibition order made under section 123ZZC(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022; (h) a prohibition order made under section 123ZZC(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022, and as continued by section 220(5) of the Financial Services and Markets Act 2022; or (i) a prohibition order made under section 7(1) of the Financial Services and Markets Act 2022;" — Section 204(1)(b)

This exhaustive definition ensures that all forms of prohibition orders, whether issued under legacy statutes or the FSMA 2022, are recognised and enforceable. The rationale behind this provision is to prevent regulatory gaps where an individual or entity might evade restrictions due to technical differences in statutory language or timing of orders. By consolidating these orders under a single definitional umbrella, the legislation enhances regulatory certainty and enforcement efficiency.

"“FSMA prohibition order” means a prohibition order made under section 7(1) of the Financial Services and Markets Act 2022;" — Section 209(1)(a)

Verify Section 209 in source document →

"“related Acts 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; (b) 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, and as continued by section 217(2) of the Financial Services and Markets Act 2022; (c) an order made under section 74(1) of the Insurance Act 1966 as in force immediately before the date of commencement of section 204(1) to (4) of the Financial Services and Markets Act 2022; or (d) an order made under section 74(1) of the Insurance Act 1966 as in force immediately before the date of commencement of section 204(1) to (4) of the Financial Services and Markets Act 2022, and as continued by section 218(2) of the Financial Services and Markets Act 2022;" — Section 209(1)(c)

These sub-definitions further categorise prohibition orders to distinguish between those issued under the FSMA 2022 and those under related Acts. This categorisation facilitates precise application of enforcement powers and procedural rules, reflecting the legislative intent to maintain continuity while transitioning to the new regulatory framework.

Penalties and Enforcement Mechanisms Under the Amended Framework

While the provided excerpts do not explicitly enumerate penalties for non-compliance, they reference enforcement mechanisms and the recovery of fees, which are integral to regulatory compliance.

"The Authority may recover from the relevant participant the amount of any fees payable to the Authority under any rules made under subsection (4) as a civil debt due to the Authority." — Section 205(3)

Verify Section 205 in source document →

This provision empowers MAS to recover fees as a civil debt, underscoring the seriousness of compliance with regulatory fee obligations. The ability to treat unpaid fees as civil debts expedites recovery and reduces administrative burdens, thereby promoting timely compliance.

"Section 174 (except subsection (7)) and section 175 (except subsection (7)) of the FSMA 2022 apply in relation to an offence committed under this Part as they apply in relation to an offence committed under the FSMA 2022." — Section 212(11)(a)

Verify Section 174 in source document →

This cross-reference to sections 174 and 175 of the FSMA 2022 extends the Act’s general offence and penalty provisions to offences under the Variable Capital Companies Act 2018 as amended. The rationale is to maintain consistency in penalty regimes across related financial legislation, ensuring that offences are met with appropriate sanctions to deter misconduct and uphold market integrity.

Extensive Cross-References to Related Legislation

The amendments extensively cross-reference a broad spectrum of financial and related legislation, reflecting the interconnected nature of Singapore’s regulatory framework. These cross-references ensure that the FSMA 2022 operates harmoniously with existing laws, preventing conflicts and duplications.

"Section 36 of the Insurance Act 1966 is amended..." — Section 204

Verify Section 36 in source document →

"Section 23(7A) of the Monetary Authority of Singapore Act 1970 is amended..." — Section 205

Verify Section 23 in source document →

"Section 2(1) of the Mutual Assistance in Criminal Matters Act 2000 is amended..." — Section 206

Verify Section 2 in source document →

"Section 2(1) of the Payment Services Act 2019 is amended..." — Section 207

Verify Section 2 in source document →

"Section 2 of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 is amended..." — Section 208

Verify Section 2 in source document →

"Section 2(1) of the Securities and Futures Act 2001 is amended..." — Section 209

Verify Section 2 in source document →

"Section 10(2) of the Trust Companies Act 2005 is amended..." — Section 210

Verify Section 10 in source document →

"Section 2(2) of the United Nations Act 2001 is amended..." — Section 211

Verify Section 2 in source document →

"Section 2(1) of the Variable Capital Companies Act 2018 is amended..." — Section 212

Verify Section 2 in source document →

"Section 203 of the Securities and Futures (Amendment) Act 2017 is repealed." — Section 213

Verify Section 20 in source document →

"Section 6 of the Financial Services and Markets Act 2022 is amended..." — Section 214

Verify Section 6 in source document →

These cross-references serve multiple purposes: they update outdated statutory language, incorporate new regulatory concepts introduced by the FSMA 2022, and ensure that enforcement and supervisory powers are consistently applied across different financial sectors. For instance, amendments to the Mutual Assistance in Criminal Matters Act 2000 facilitate international cooperation in financial crime investigations under the new regulatory regime.

Conclusion

The amendments encapsulated in these provisions reflect a deliberate legislative strategy to modernise Singapore’s financial regulatory framework through the FSMA 2022. By aligning definitions, consolidating prohibition orders, enhancing enforcement mechanisms, and updating cross-references, the legislation ensures a coherent and robust regulatory environment. This approach not only promotes regulatory clarity and efficiency but also strengthens MAS’s ability to safeguard the integrity and stability of Singapore’s financial markets.

Sections Covered in This Analysis

• Section 204 – Amendments to the Insurance Act 1966
• Section 205 – Amendments to the Monetary Authority of Singapore Act 1970
• Section 206 – Amendments to the Mutual Assistance in Criminal Matters Act 2000
• Section 207 – Amendments to the Payment Services Act 2019
• Section 208 – Amendments to the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019
• Section 209 – Amendments to the Securities and Futures Act 2001
• Section 210 – Amendments to the Trust Companies Act 2005
• Section 211 – Amendments to the United Nations Act 2001
• Section 212 – Amendments to the Variable Capital Companies Act 2018
• Section 213 – Repeal of Section 203 of the Securities and Futures (Amendment) Act 2017
• Section 214 – Amendments to the Financial Services and Markets Act 2022

Source Documents

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

For the authoritative text, consult SSO.