MAS consults on proposed amendments to Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024

29 October 2024

On 12 September 2024, the Monetary Authority of Singapore (“MAS”) published a consultation paper seeking feedback on proposed amendments to the Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024 (“FSM RFI Regulations”) (“2024 Consultation”), following its earlier consultation on the proposed enhancement of resolution powers for the insurance sector in September 2023 (“2023 Consultation”). The 2024 Consultation closed on 11 October 2024.

In the 2023 Consultation, MAS proposed to acquire statutory bail-in powers for the insurance sector and to prescribe a maximum duration of two business days for stays on reinsurers’ rights to terminate coverage relating to periods after the commencement of resolution. MAS published its responses to the consultation on 12 September 2024 following its review of the feedback received.

The 2024 Consultation covered the following matters:

  • Bail-in powers: MAS has statutory powers to carry out the bail-in of liabilities under Division 6 of the Financial Services and Markets Act 2022 (“FSMA”). Feedback was sought on proposed amendments to Part 5 of the FSM RFI Regulations to extend the statutory bail-in regime to the insurance sector, by scoping in Singapore-incorporated licensed insurers and designated insurance holding companies (referred collectively as “insurers”) as Division 6 financial institutions and expanding the scope of eligible instruments to cover instruments issued by insurers.
  • Termination rights: MAS has statutory powers to temporarily stay the early termination rights of reinsurers under Division 7 of the FSMA. MAS sought feedback on the introduction of a new regulation under Part 6 of the FSM RFI Regulations to prescribe the maximum duration of two business days for stays on reinsurance contracts.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg: