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: Powers conferred by section 341 of the Securities and Futures Act
- Commencement: 5 August 2020
- Making Date: 1 August 2020
- Key Provisions:
- Regulation 1: Citation and commencement
- Regulation 2: Prescribes a financial benchmark by reference to the Schedule
- Schedule: Identifies the prescribed financial benchmark
- Status: Current version as at 27 March 2026
What Is This Legislation About?
The Securities and Futures (Prescribed Financial Benchmark) Regulations 2020 (“SF Prescribed Benchmark Regulations”) are a short but important piece of Singapore financial regulation. Their central function is to prescribe a specific rate as a “financial benchmark” for the purposes of the Securities and Futures Act (the “SFA”). In practical terms, the Regulations determine that a particular benchmark falls within the regulatory framework for financial benchmarks under the SFA.
In plain language, the Regulations answer a targeted question: which benchmark rate is treated as a regulated “financial benchmark” under the SFA? Once a rate is prescribed, it becomes subject to the legal consequences that flow from the SFA’s benchmark regime—such as requirements relating to benchmark administration, governance, and oversight (depending on how the SFA defines and regulates benchmark activities).
Although the Regulations contain only two operative provisions and a Schedule, they operate as a gateway instrument. They do not themselves create a full compliance regime; rather, they activate the SFA’s benchmark provisions by designating the relevant rate as a prescribed financial benchmark.
What Are the Key Provisions?
Regulation 1 (Citation and commencement) provides the formal identification of the instrument and its effective date. It states that the Regulations are the “Securities and Futures (Prescribed Financial Benchmark) Regulations 2020” and that they come into operation on 5 August 2020. For practitioners, the commencement date matters because it determines when the prescribed benchmark status begins to apply and when compliance expectations may start to attach.
Regulation 2 (Prescribed financial benchmark) is the operative designation clause. It provides 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. This is a classic legislative technique: the Regulations do not define the benchmark in the body; instead, they incorporate the Schedule as the authoritative list of the prescribed rate.
The reference to section 2(1) of the SFA is legally significant. The SFA’s definition of “financial benchmark” is not limited to a single category; it includes benchmarks that meet certain criteria. By prescribing the rate under paragraph (b) of that definition, the Regulations confirm that the designated rate is intended to fall within the SFA’s benchmark regulatory scope. For legal analysis, this means that the benchmark’s status is not merely descriptive—it is jurisdictional and statutory.
The Schedule (Prescribed financial benchmark) is where the substantive content resides. The extract provided shows the existence of the Schedule and its heading (“Prescribed financial benchmark”), but it does not reproduce the actual rate. In practice, the Schedule is the document section that lawyers must consult to identify the exact benchmark rate (including its name, description, and any relevant specification). When advising clients, practitioners should treat the Schedule as the authoritative source for what exactly is prescribed.
Because the Regulations are short, there are no additional procedural provisions in the extract—such as consultation requirements, reporting obligations, or enforcement mechanisms. Those matters are instead governed by the SFA itself and any other subsidiary instruments or MAS notices that implement the benchmark regime. Accordingly, the Regulations should be read as a designation instrument that triggers the broader statutory framework.
How Is This Legislation Structured?
The SF Prescribed Benchmark Regulations are structured in a minimal, functional format:
(1) Enacting formula—states that the Monetary Authority of Singapore (“MAS”) makes the Regulations under the powers conferred by section 341 of the SFA.
(2) Regulation 1—citation and commencement.
(3) Regulation 2—prescription of the financial benchmark by reference to the Schedule.
(4) The Schedule—lists the prescribed benchmark rate. The Schedule is the key substantive component; it is what lawyers must identify to determine whether a particular rate is within the regulated category.
There are no Parts or complex sub-sections in the extract, reflecting the Regulations’ narrow purpose. This is typical for subsidiary legislation that performs a classification or designation function.
Who Does This Legislation Apply To?
While the Regulations themselves are addressed to the legal category of “financial benchmark” under the SFA, the practical effect is felt by market participants involved with the prescribed benchmark. This typically includes benchmark administrators, contributors, users, and firms that reference the benchmark in financial contracts—depending on how the SFA defines “benchmark-related activities” and the scope of obligations under the benchmark regime.
In other words, the Regulations do not directly regulate “persons” in the way a licensing or conduct regulation would. Instead, they determine that a particular rate is a regulated benchmark. Once that designation is in place, the SFA’s benchmark provisions apply to relevant activities involving that benchmark. Therefore, the “who” is best understood by reference to the SFA’s benchmark framework: any entity whose role intersects with the prescribed benchmark may need to consider compliance obligations under the SFA and related MAS instruments.
Why Is This Legislation Important?
Even though the SF Prescribed Benchmark Regulations are brief, they are important because they shape the regulatory perimeter. Financial benchmark regulation is highly sensitive to definitions: if a rate is not a “financial benchmark” under the SFA, then the benchmark regime may not apply. Conversely, once a rate is prescribed, firms must treat it as regulated and ensure that their benchmark-related practices align with the SFA.
From a legal risk perspective, prescription affects contract drafting and operational compliance. For example, benchmark-referencing clauses in derivatives, loans, notes, and other financial instruments may require benchmark-specific governance, fallback arrangements, or compliance controls. Even if the Regulations do not themselves prescribe contractual terms, the designation can influence how parties interpret their obligations under the SFA and how MAS expects benchmark governance to be implemented.
For practitioners, the Regulations also matter for due diligence and regulatory mapping. When advising a client on whether a particular rate is subject to the SFA benchmark regime, the first step is to identify whether the rate is “prescribed” under instruments like these. This is particularly relevant for firms that use multiple benchmarks across jurisdictions, or for new products that reference rates that may or may not be captured by Singapore’s benchmark definition.
Finally, the Regulations’ status as “current version as at 27 March 2026” underscores that the designation may be maintained, amended, or superseded over time. Practitioners should therefore check the latest version and the Schedule content when advising on current compliance obligations.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular, the definition of “financial benchmark” in section 2(1) and the regulation-making power in section 341.
- Futures Act — referenced in the provided metadata as related legislation (practitioners should confirm the precise cross-references, if any, in the full legislative set).
- MAS / legislative timeline materials — for version control and amendment history (as indicated by the legislation timeline interface).
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.