Statute Details
- Title: Securities and Futures (Capital Markets Services Licence and Representative’s Licence) (Transitional and Savings Provisions) Regulations
- Act Code: SFA2001-RG7
- Type: Subsidiary legislation (sl)
- Authorising Act: Securities and Futures Act (Chapter 289, Section 343)
- Commencement / Appointed date: Part IV of the Securities and Futures Act came into operation on 1 October 2002 (as referenced in regulation 2)
- Legislative status: Current version as at 27 March 2026
- Key provisions (from extract): Regulation 2 (definitions); Regulation 5 (acts done or commenced by the Authority under repealed Acts); Regulation 3 (transitional licensing for FTA/SIA licensees); Regulation 7 (saving of notices under FTA and SIA)
- Related legislation (as provided): Futures Act; Futures Trading Act; Securities Industry Act; Securities and Futures Act
What Is This Legislation About?
The Securities and Futures (Capital Markets Services Licence and Representative’s Licence) (Transitional and Savings Provisions) Regulations (“the Transitional Regulations”) are designed to manage the legal transition from an older licensing regime under the Futures Trading Act (“FTA”) and the Securities Industry Act (“SIA”) to the newer framework under the Securities and Futures Act (“SFA”). In practical terms, the Regulations ensure that businesses and individuals who were already licensed under the repealed or superseded regimes are not abruptly forced to stop operating when the SFA’s licensing structure begins.
In plain language, the Regulations provide a “bridge” so that existing futures and securities market participants can continue their regulated activities under the SFA without having to immediately obtain entirely new licences from scratch. Where appropriate, the Regulations also preserve the effect of certain notices and administrative acts taken by the Authority (the Monetary Authority of Singapore, “MAS”) under the previous laws.
The scope is therefore transitional and administrative: it focuses on deeming licences and representative licences, determining their expiry, allowing renewal within specified timeframes, and ensuring continuity for deposits and applications. It also contains “savings” provisions so that actions and notices under the old regimes do not become legally ineffective merely because the legal landscape has changed.
What Are the Key Provisions?
1. Definitions and the “appointed date” (Regulation 2)
The Regulations begin by defining key terms. The most important is the “appointed date”, which is the date on which Part IV of the SFA comes into operation. The extract indicates that Part IV came into operation on 1 October 2002 (vide S 454/2002). This appointed date is the anchor for all transitional effects: licences and representative licences are deemed to move into the SFA framework from that date.
2. Deeming of licences: licensees under the FTA and SIA (Regulation 3)
Regulation 3 is the core of the Transitional Regulations. It provides that, unless MAS notifies otherwise in writing, a person holding specified licences immediately before the appointed date will be deemed to hold a capital markets services licence under the SFA for the regulated activities they were carrying on under the old licence.
Specifically, regulation 3(1)(a) lists categories of licences under the FTA and SIA that convert into SFA capital markets services licences. The extract shows, among others:
- futures broker’s licence (FTA);
- futures trading adviser’s licence (FTA);
- futures pool operator’s licence (FTA);
- dealer’s licence (SIA);
- investment adviser’s licence (SIA).
Regulation 3(1)(b) addresses conditions and restrictions. Any condition or restriction attached to the old licence immediately before the appointed date is deemed to attach to the corresponding capital markets services licence, but only to the extent consistent with the SFA and the Transitional Regulations. This is important for practitioners because it preserves regulatory constraints (for example, business scope limitations or compliance obligations) rather than resetting them.
3. Special treatment for securities financing and custodial services (Regulation 3(2))
Regulation 3(2) provides a targeted deeming rule for a dealer’s licence under the SIA. If the dealer was carrying on business in securities financing or providing custodial services for securities immediately before the appointed date, then from that date it is deemed to hold a capital markets services licence in respect of such regulated activity. This ensures that activities that may not map neatly to the old licence labels are still captured within the SFA’s regulated activity categories.
4. Deeming of representative licences (Regulation 3(3))
Regulation 3(3) mirrors the deeming mechanism for individuals. A person holding specified representative’s licences under the FTA and SIA immediately before the appointed date is deemed to hold a representative’s licence under the SFA for the regulated activities they were authorised to carry on.
Again, regulation 3(3)(b) preserves conditions and restrictions attached to the old representative licence, subject to consistency with the SFA and the Transitional Regulations.
5. MAS notice powers: expiry dates, scope, and additional conditions (Regulation 3(4)–(6))
A critical feature is MAS’s ability to issue a written notice to the relevant person. Under regulation 3(4), MAS may specify:
- the date of expiry of the deemed capital markets services licence or representative’s licence;
- the regulated activity or activities to which the deemed licence relates;
- any additional condition or restriction to which the deemed licence is subject.
Regulation 3(5) provides that once MAS gives notice of an expiry date, the deemed licence expires on that date. Regulation 3(6) then explains how expiry works where the person held multiple old licences with different expiry dates: the deemed licence expires on the last of those dates, subject to the “but for repeal” concept in regulation 3(7).
6. Renewal of deemed licences and transitional grace periods (Regulation 3(8)–(12))
The Regulations do not leave deemed licences in a perpetual limbo. Regulation 3(8) states that a deemed licence may be renewed in accordance with section 84 of the SFA. However, regulations 3(9)–(11) create modified timelines for renewal applications in relation to deemed licences.
Notably, where a deemed licence expires in the same month as the appointed date, renewal is permitted if the application is made within two months after expiry. Where it expires in the month immediately following the appointed date, the application must be made within one month after expiry. Regulation 3(11) excludes the application of section 84(6) and (7) of the SFA to these renewal applications, reflecting that the transitional regime needs different procedural consequences.
Regulation 3(12) provides a practical “continuity” protection: if renewal is applied for within the transitional window, the person is entitled to carry on business as if the licence has been renewed, and must comply with the Act as if the licence holder, for the period from expiry until renewal is granted or the application is withdrawn or refused. For counsel advising regulated entities, this is a key risk-management provision: it reduces the chance of an operational gap while renewal is pending.
7. Treatment of deposits under the SIA (Regulation 3(7A))
Regulation 3(7A) addresses a common transitional issue: deposits lodged under the old law. Where a dealer’s licence under the SIA is deemed to become a capital markets services licence, any deposit lodged under section 34 of the SIA immediately before the appointed date is deemed to be a deposit lodged under section 91 of the SFA. This avoids the need for re-depositing and preserves the legal status of funds already held for regulatory purposes.
8. Withdrawal and refund of fees for certain renewal applications (Regulation 3(13))
Regulation 3(13) provides that an application made before the appointed date for renewal of a licence that would have expired after the appointed date (but for the repeal) is deemed withdrawn from the appointed date. MAS must refund any fee paid in relation to such application. This provision is important for practitioners managing renewal workflows and ensuring that clients do not lose money due to the structural change in licensing law.
9. Acts done or commenced by MAS under repealed Acts (Regulation 5)
Although the extract only shows the heading and first line of regulation 5, its function is clear: it provides that all acts done by the Authority under the FTA or the SIA in relation to the persons referred to in the Regulations are preserved. In other words, MAS enforcement or administrative steps taken under the old regime should not be invalidated solely because the old regime has been repealed or replaced.
10. Saving of notices under FTA and SIA (Regulation 7)
Similarly, regulation 7 is a “saving” provision. It preserves the effect of certain notices issued under the FTA and SIA. This matters because transitional licensing often involves MAS notices about conditions, approvals, or regulatory directions. Without a savings clause, parties could argue that notices became ineffective after the appointed date.
How Is This Legislation Structured?
The Transitional Regulations are structured as a short set of provisions focused on continuity. Based on the extract, the Regulations contain at least the following numbered regulations:
- Regulation 1: Citation.
- Regulation 2: Definitions, including the “appointed date” and references to the FTA and SIA as in force immediately before that date.
- Regulation 3: The main deeming provisions for licensees and representatives, including conditions, expiry, renewal, deposits, and refunds.
- Regulation 4: (Referenced in the extract) Pending applications for licence—likely addressing how applications in progress are treated during the transition.
- Regulation 5: Preservation of acts done or commenced by MAS under repealed Acts.
- Regulation 6: (Referenced in the extract) Fund Manager, etc.—likely addressing specific categories of persons and their transitional treatment.
- Regulation 7: Saving of notices under the FTA and SIA.
For practitioners, the numbering is useful because regulation 3 is the operational “conversion” mechanism, while regulations 5–7 are the legal “continuity” mechanisms for MAS actions and notices.
Who Does This Legislation Apply To?
The Transitional Regulations apply to persons who held specified licences and representative licences under the Futures Trading Act and the Securities Industry Act immediately before the appointed date (1 October 2002), as well as to MAS and applicants whose applications or regulatory notices relate to those persons.
In addition, the Regulations apply indirectly to regulated entities that were carrying on particular regulated activities (such as securities financing or custodial services) under an SIA dealer’s licence, because regulation 3(2) deems a corresponding capital markets services licence for those activities. The Regulations also apply to individuals who were authorised as representatives under the old regimes, because regulation 3(3) deems representative licences under the SFA.
Why Is This Legislation Important?
From a compliance and legal risk perspective, the Transitional Regulations are crucial because they prevent a “regulatory cliff edge” during the shift to the SFA’s capital markets licensing framework. Without such provisions, existing market participants could face uncertainty about whether their authorisations remained valid, whether conditions carried over, and whether enforcement actions or notices would survive the repeal of the old Acts.
For lawyers advising licensed firms and representatives, regulation 3 is the practical starting point. It determines whether a client is deemed to hold an SFA licence, what activities the licence covers, what conditions apply, and—most importantly—how expiry and renewal are handled. The transitional renewal windows and the “carry on business” protection in regulation 3(12) are particularly significant for operational continuity and for avoiding inadvertent breaches of licensing requirements during renewal processing.
Finally, regulations 5 and 7 (and related savings provisions) protect the integrity of MAS’s regulatory actions. They reduce the scope for procedural or technical challenges that could otherwise undermine enforcement, approvals, or regulatory directions issued under the former legal regime.
Related Legislation
- Securities and Futures Act (Cap. 289) — including section 343 (authorising provision) and section 84 (renewal framework referenced in regulation 3)
- Futures Trading Act (Cap. 116) — as in force immediately before the appointed date
- Futures Act — referenced in the provided metadata
- Securities Industry Act (Cap. 289) — as in force immediately before the appointed date
- Financial Advisers (Transitional and Savings Provisions) Regulations (Rg 1) — referenced in regulation 3 by cross-notice powers
Source Documents
This article provides an overview of the Securities and Futures (Capital Markets Services Licence and Representative’s Licence) (Transitional and Savings Provisions) Regulations for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.