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: Sections 1–2; Schedule (prescribed financial benchmark)
- Status: Current version as at 27 March 2026
- Legislative Instrument: S 672/2020
What Is This Legislation About?
The Securities and Futures (Prescribed Financial Benchmark) Regulations 2020 (“PFBR Regulations”) is a short set of subsidiary regulations made by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (SFA). In practical terms, the Regulations identify a specific “rate” as a prescribed financial benchmark for the purposes of the SFA’s regulatory framework for financial benchmarks.
Financial benchmarks are reference rates used in a wide range of financial products and contracts—such as derivatives, loans, and other instruments whose pricing depends on a benchmark. Because benchmarks can materially affect market participants and consumers, the SFA establishes a regulatory regime governing financial benchmarks, including how they are defined and treated under the Act.
This particular instrument does not create a broad compliance programme by itself. Instead, it performs a targeted legislative function: it “prescribes” (i.e., designates) a particular rate listed in the Schedule as a financial benchmark under the SFA. Once prescribed, the rate falls within the scope of the SFA’s benchmark-related provisions (including those that apply to “financial benchmarks” as defined in the Act).
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the formal commencement date and the short title. The Regulations are cited as the “Securities and Futures (Prescribed Financial Benchmark) Regulations 2020” and come into operation on 5 August 2020. For practitioners, the commencement date matters when assessing whether a benchmark was regulated under the SFA regime at a particular time (for example, when reviewing historical conduct, contractual documentation, or regulatory reporting obligations).
Section 2 (Prescribed financial benchmark) 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. In other words, the Regulations connect the Schedule to the SFA’s definitional framework: the Schedule supplies the specific benchmark rate, while Section 2 explains that this rate is designated as a financial benchmark under the Act.
The legal significance of Section 2 is that it triggers the definitional inclusion of the benchmark within the SFA. The SFA’s definition of “financial benchmark” typically operates as a gateway: once a rate is within the definition, the benchmark may attract additional regulatory requirements, supervisory powers, and compliance expectations under the SFA’s benchmark provisions. Even though the PFBR Regulations themselves are brief, they are a critical “switch” that determines whether a particular rate is treated as a regulated benchmark.
The Schedule (Prescribed financial benchmark) contains the actual benchmark rate that is being prescribed. The extract provided indicates that the Schedule lists “Prescribed financial benchmark” and that Section 2 refers to “the rate set out in the Schedule.” In practice, the Schedule is where the substantive designation occurs. For a lawyer advising on benchmark governance, product documentation, or regulatory classification, the Schedule is therefore the most important part of the instrument: it identifies the exact rate that is brought within the SFA’s benchmark definition.
Enacting formula and making authority also provide context. The Regulations were made by MAS (the Monetary Authority of Singapore) on 1 August 2020, signed by the Managing Director, Ravi Menon. This confirms the regulatory authority and the formal legislative process. The instrument also includes a reference to the MAS internal file and the Attorney-General’s Chambers legislative reference, which can be useful for archival research and for locating related legislative materials.
How Is This Legislation Structured?
The PFBR Regulations are structured in a very streamlined way:
(1) Section 1: Citation and commencement. This is purely procedural.
(2) Section 2: The substantive designation mechanism. It links the Schedule to the SFA definition of “financial benchmark.”
(3) The Schedule: The substantive content listing the prescribed benchmark rate. The Schedule is the heart of the Regulations, because it identifies the rate that is being prescribed.
There are no additional Parts or detailed operational provisions in the extract. This is typical of subsidiary regulations that serve a definitional or classification purpose rather than establishing a full regulatory regime.
Who Does This Legislation Apply To?
The Regulations themselves are directed at the regulatory classification of a benchmark rate under the SFA. However, the practical effect is felt by market participants who interact with the prescribed benchmark—such as benchmark administrators, contributors, users, and entities whose financial products reference the benchmark.
In legal practice, the question is usually not “who is directly addressed by the PFBR Regulations,” but rather: who must comply with the SFA benchmark regime because this rate is now prescribed? Once a rate is prescribed as a financial benchmark, persons and entities that fall within the SFA’s benchmark framework may be subject to requirements relating to benchmark governance, oversight, conduct, and regulatory reporting or supervision (depending on the SFA’s detailed provisions and any related subsidiary instruments).
Accordingly, the PFBR Regulations are relevant to:
- Benchmark users (e.g., financial institutions and corporates using the rate in pricing, valuation, or contractual terms);
- Benchmark administrators (if they administer the prescribed rate and must meet any SFA benchmark obligations);
- Benchmark contributors (if they provide inputs to the benchmark); and
- Derivatives and structured product participants whose contracts reference the benchmark and therefore may need to ensure compliance with benchmark-related legal and regulatory requirements.
Why Is This Legislation Important?
Although the PFBR Regulations are brief, they are important because they determine whether a particular rate is treated as a “financial benchmark” under the SFA. That classification can have significant downstream consequences. In regulated markets, the difference between an unregulated reference rate and a prescribed financial benchmark can affect how contracts are drafted, how risk is managed, and what regulatory expectations apply.
From an enforcement and supervisory perspective, MAS’s ability to regulate benchmark-related conduct depends on the benchmark being within the statutory definition. By prescribing the rate in the Schedule, the Regulations ensure that the SFA’s benchmark regime can be applied to that rate. This supports market integrity and helps reduce risks associated with benchmark manipulation, misrepresentation, or inadequate governance.
For practitioners, the PFBR Regulations are also important for contractual and compliance mapping. Lawyers advising on documentation for loans, derivatives, and other financial instruments need to know whether the reference rate is a prescribed financial benchmark. This affects legal analysis of benchmark clauses, fallback mechanisms, representations and warranties, and internal compliance controls. It may also influence whether certain regulatory disclosures or governance arrangements are required under the broader SFA benchmark framework.
Finally, the instrument’s “current version as at 27 March 2026” status signals that the designation remains in force as of that date. Practitioners should still check whether the Schedule has been amended over time (the extract does not show the rate itself), because changes to the prescribed benchmark could alter regulatory classification and compliance obligations.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular, the definition of “financial benchmark” in section 2(1) and MAS’s regulation-making power in section 341.
- Futures Act — referenced in the provided metadata as related legislation (for completeness, practitioners should confirm the precise relationship, if any, between the benchmark regime and futures-related regulatory provisions).
- Legislation Timeline / MAS Benchmark Framework Instruments — practitioners should consult the MAS legislative timeline and any related subsidiary regulations that implement or operationalise benchmark governance under the SFA.
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.