Statute Details
- Title: Securities and Futures (Prescribed Financial Benchmark) Regulations 2020
- Act Code: SFA2001-S672-2020
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Securities and Futures Act (Cap. 289)
- Enacting Power: Section 341 of the Securities and Futures Act
- Commencement: 5 August 2020
- Key Provisions (from extract): Regulation 1 (citation and commencement); Regulation 2 (prescribed financial benchmark); Schedule (the benchmark)
- Schedule: Prescribed financial benchmark (rate set out in the Schedule)
- Current Version Status: Current version as at 27 March 2026 (per the legislation portal)
- Legislative Instrument: SL 672/2020
What Is This Legislation About?
The Securities and Futures (Prescribed Financial Benchmark) Regulations 2020 (“SF (Prescribed Financial Benchmark) Regulations 2020”) is a short but targeted set of subsidiary regulations made by the Monetary Authority of Singapore (MAS). Its central function is to “prescribe” a specific rate as a financial benchmark for purposes of the Securities and Futures Act (the “SFA”). In practical terms, the Regulations identify which benchmark rate is treated as a regulated financial benchmark under the SFA framework.
In plain language, the Regulations do not create a comprehensive benchmark regime by themselves. Instead, they operate as a definitional and regulatory “switch”: they designate a particular rate (listed in the Schedule) as a financial benchmark under the SFA. Once a rate is prescribed, it falls within the statutory definition of “financial benchmark” and becomes subject to the SFA’s benchmark-related provisions (including requirements and regulatory oversight that apply to benchmarks).
The Regulations are therefore best understood as part of a broader legislative architecture. The SFA provides the general legal framework for financial benchmarks, while the subsidiary regulations identify the specific benchmarks that are captured. This approach allows MAS to update or expand the list of prescribed benchmarks without amending the SFA itself.
What Are the Key Provisions?
Regulation 1 (Citation and commencement). Regulation 1 provides the formal title of the instrument and states when it comes into operation. The Regulations are cited as the “Securities and Futures (Prescribed Financial Benchmark) Regulations 2020” and come into operation on 5 August 2020. This matters for practitioners because benchmark-related compliance obligations (or the applicability of statutory provisions) typically attach from the commencement date.
Regulation 2 (Prescribed financial benchmark). Regulation 2 is the operative provision. It states that the rate set out in the Schedule is prescribed as a financial benchmark for the purposes of paragraph (b) of the definition of “financial benchmark” in section 2(1) of the SFA. The reference to “paragraph (b)” is significant: it indicates that the SFA’s definition of “financial benchmark” is not limited to benchmarks that are inherently financial or that are widely known; rather, it also includes benchmarks that are prescribed by regulations. In other words, the SFA definition has a mechanism that allows MAS to designate particular rates as regulated benchmarks.
The Schedule (Prescribed financial benchmark). The Schedule contains the actual benchmark rate that is being prescribed. While the extract provided does not reproduce the specific rate text, the legal effect is clear: the Schedule is the authoritative list of what is being designated. For legal work, the Schedule is the “heart” of the instrument. Any analysis of whether a particular rate is within the scope of the Regulations must be anchored to the Schedule’s wording (including any description, reference conditions, or naming conventions).
Enacting formula and making authority. The Regulations were made by MAS (the Monetary Authority of Singapore) using powers conferred by section 341 of the SFA. The making formula also records the date the instrument was made (1 August 2020) and the signature of the Managing Director of MAS. For practitioners, this is relevant to questions of validity, procedural compliance, and the legal basis for MAS’s designation power.
How Is This Legislation Structured?
The Regulations are structured in a very streamlined manner, reflecting their narrow purpose. The instrument contains:
(1) Regulation 1: Citation and commencement.
(2) Regulation 2: The designation of the prescribed financial benchmark, referring to the Schedule and to the SFA definition of “financial benchmark”.
(3) The Schedule: The list (or specification) of the prescribed benchmark rate.
There are no additional parts or complex schedules in the extract. This is typical of subsidiary regulations that perform a “prescription” function under a broader enabling statute. The legal structure is therefore best described as a definitional instrument: it links the Schedule to the statutory definition in the SFA.
Who Does This Legislation Apply To?
The Regulations themselves are not drafted as a compliance code directed at a particular class of market participants. Instead, they apply indirectly by determining which benchmark rate is treated as a “financial benchmark” under the SFA. As a result, the practical scope extends to persons and entities whose activities relate to that benchmark—such as benchmark administrators, contributors, users, and other regulated persons who interact with the benchmark in Singapore’s financial markets.
For practitioners, the key question is not “who is addressed by the Regulations” (because the Regulations are short and definitional), but rather “who is affected by the benchmark being prescribed.” Once a rate is prescribed, the SFA’s benchmark-related provisions become relevant to the benchmark and to regulated activities involving it. Therefore, the Regulations can affect a wide range of stakeholders, including firms that reference the benchmark in contracts, trading systems, valuation models, or risk management frameworks.
Why Is This Legislation Important?
Although the SF (Prescribed Financial Benchmark) Regulations 2020 is brief, it can have significant downstream effects. Financial benchmarks are often embedded in financial contracts (for example, interest rate calculations, derivatives pricing, or settlement terms). By prescribing a rate as a financial benchmark, MAS effectively brings that rate within the SFA’s regulatory perimeter. This can influence how market participants must manage benchmark governance, oversight, and compliance.
From an enforcement and compliance perspective, prescription is a prerequisite for the application of the SFA’s benchmark regime. If a rate is not prescribed, the statutory benchmark provisions may not apply in the same way. Conversely, once prescribed, firms must assess whether their roles (administrator, contributor, user, or other relevant capacity under the SFA) trigger obligations such as governance requirements, conduct standards, record-keeping, and regulatory reporting (depending on the SFA’s detailed provisions).
For legal practitioners advising financial institutions, the Regulations are therefore important for scope determination and risk management. They are also important for contract review. If a contract references the prescribed rate, counsel should consider whether the benchmark’s regulatory status affects contractual drafting, representations and warranties, fallback provisions, and operational processes for benchmark calculation and use.
Related Legislation
- Securities and Futures Act (Cap. 289) — including the definition of “financial benchmark” in section 2(1) and the enabling power in section 341.
- Futures Act — referenced in the provided metadata as related legislation (contextual relevance may depend on the broader benchmark framework and cross-regulatory provisions).
- Legislation Timeline / MAS Legislative Updates — useful for confirming the correct version and any amendments affecting the Schedule or the benchmark designation.
Source Documents
This article provides an overview of the Securities and Futures (Prescribed Financial Benchmark) Regulations 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.