MAS to proceed with proposed amendments to Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024

18 December 2024

On 12 December 2024, the Monetary Authority of Singapore (“MAS”) published its response to feedback from its consultation on proposed amendments to the Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024 (“FSM Regulations”). 

MAS issued a consultation paper to seek feedback on the proposed amendments on 12 September 2024. These amendments were intended to extend the statutory bail-in regime to the insurance sector and prescribe the maximum duration of temporary stays on the early termination rights of reinsurers. MAS observed that there were no objections to the proposed amendments. 

The amendments will be effected via changes to the FSM Regulations and will come into operation on 31 December 2024. 

In a circular published on 12 December 2024, MAS reminded designated financial holding companies (licensed insurer) (“DFHC (Licensed Insurer)s”) and insurers that the contract that governs an eligible instrument, as defined under regulation 28 of the FSM Regulations, must contain provisions to the effect of that specified in regulations 30(1) and 30(2) of the FSM Regulations. DFHC (Licensed Insurer)s and insurers must also comply with the disclosure requirement for an eligible instrument as set out in regulation 31(1) of the FSM Regulations. Further information on the regulations is provided in our article “MAS consults on proposed amendments to Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024”. 

Reference materials 

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

• MAS Response to Consultation on Amendments to FSM RFI Regulations 2024 (from this webpage)
• Circular No. ID 19/24 Response to Feedback on Consultation on Proposed Amendments to Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024 (from this webpage)