MAS Issues 14-Year Prohibition Orders Against Former UOB Representative
On 26th November 2024, the Monetary Authority of Singapore (MAS) imposed 14-year prohibition orders against Mr. Loh Sheng Yang, a former representative of United Overseas Bank Limited (UOB). The sanctions follow Mr. Loh’s conviction for cheating, forgery, and acquiring benefits from criminal conduct.
Key Facts of the Case
- Offenses: Between June 2021 and February 2023, Mr. Loh defrauded 17 victims of over S$1 million by promoting fictitious UOB fixed and structured deposit products. He instructed victims to transfer funds to his personal account and issued forged documents to substantiate the fake investments. Misappropriated funds were used for online gambling.
- Legal Outcome: On 15th February 2024, Mr. Loh pleaded guilty to several counts of cheating, forgery, and acquiring criminal benefits, resulting in a 68-month imprisonment term.
- Prohibition Orders: Effective 26th November 2024, Mr. Loh is prohibited from:
- Performing any regulated activities under the Financial Advisers Act (FAA) and Securities and Futures Act (SFA).
- Acting as a director, substantial shareholder, or manager in financial advisory or capital markets services firms.
MAS emphasises its commitment to upholding the integrity of Singapore’s financial sector. These prohibition orders serve as a clear warning that misconduct will not be tolerated, and individuals who abuse client trust will face severe consequences.
To access the original regulatory reference click here
MAS and NFRA Strengthen Supervisory Cooperation
On 27 November 2024, the MAS and the National Financial Regulatory Administration (NFRA) of China reaffirmed their commitment to closer collaboration at the annual MAS-NFRA Supervisory Roundtable held in Suzhou, China.
Key Areas of Cooperation
Strengthened Supervisory Oversight
The discussions focused on supervisory priorities for banks operating in both jurisdictions, updates to NFRA’s insurance supervision framework, and the latest developments in the asset management sector.
Cross-Border Collaboration
- Over the past two years, MAS and NFRA have enhanced cooperation through initiatives like staff attachments and study visits, covering areas such as:
- Technology resilience.
- Digital assets and artificial intelligence.
- Green finance.
Leadership Commitment
Ms. Ho Hern Shin, MAS’s Deputy Managing Director (Financial Supervision), highlighted the strong partnership between MAS and NFRA, emphasizing the importance of coordinated oversight in maintaining financial stability across both markets.
Why This Matters
The reaffirmation of supervisory cooperation between MAS and NFRA reflects the evolving complexities of the global financial ecosystem. Collaborative efforts ensure robust oversight, foster financial resilience, and align regulatory priorities in areas such as digital innovation and sustainable finance.
This partnership continues to set a high standard for cross-border regulatory cooperation, benefiting financial institutions and markets in both Singapore and China.
To access the original regulatory reference click here
MAS Announces Revision to the Code of Collective Investment Schemes
28 November 2024, the MAS announced revisions to the Code on Collective Investment Schemes to streamline leverage requirements and enhance disclosure standards for Real Estate Investment Trusts (REITs).
Key Changes
- Unified Leverage Limit: A single aggregate leverage cap of 50% now applies to all REITs, replacing the previous tiered system.
- Standardised Interest Coverage Ratio (ICR): All REITs must maintain a minimum ICR of 1.5 times at all times, ensuring sufficient earnings to cover interest payments.
Enhanced Disclosure Requirements
Effective for financial periods ending on or after 31 March 2025, REITs are mandated to:
- Management Strategies: Disclose plans for managing leverage and ICR levels.
- Sensitivity Analyses: Provide analyses on how a 10% decrease in EBITDA and a 100-basis point increase in interest rates would impact the ICR.
- Remedial Plans: If the ICR falls below 1.8 times, outline steps to improve the ratio.
These measures aim to promote prudent borrowing practices and enhance transparency within Singapore’s REIT sector, aligning with global standards.
To access the original regulatory reference click here
MAS Reaffirms Standards for Trainers of Financial Advisory Professionals
On 2 December 2024, the MAS released a response to concerns about the qualifications of trainers for financial advisory professionals. MAS underscored its commitment to ensuring high standards of professionalism and competence in Singapore’s financial advisory sector.
Key Points from MAS
Competence of Financial Advisory Representatives
- MAS emphasised that financial advisory firms are responsible for ensuring their representatives are equipped with the necessary knowledge and skills to provide sound financial advice.
Evaluation of Training Programs
- Firms are required to assess the quality and effectiveness of both internal and external training programs. This includes reviewing:
- Trainers’ credentials and track records.
- Content and relevance of the training.
- Feedback from past participants.
Supervisory Oversight
- MAS conducts regular reviews of financial advisory firms.
- Firms with inadequate governance or training practices must make improvements to meet regulatory expectations.
MAS’s response reinforces the importance of ensuring financial advisory professionals receive high-quality training from qualified trainers. This safeguards client interests and upholds trust in Singapore’s financial advisory industry.
To access the original regulatory reference click here
MAS Imposes Civil Penalty for Failure to Prevent and Detect Misconduct
On 2 December 2024, the MAS imposed a civil penalty of S$2.4 million on JPMorgan Chase Bank, N.A. for failing to prevent and detect misconduct by its relationship managers (RMs). Between November 2018 and September 2019, these RMs provided inaccurate or incomplete information to clients in 24 over the counter (OTC) bond transactions, resulting in clients being charged spreads above the bilaterally agreed rates.
Key Findings
- Misrepresentation in Transactions: RMs misrepresented or omitted crucial pricing details, leading to overcharges for clients.
- Inadequate Internal Controls: MAS identified that JPMorgan lacked sufficient processes to ensure adherence to pre-agreed pricing, allowing the misconduct to occur.
Actions Taken
- Admission and Penalty Payment: JPMorgan admitted liability and paid the civil penalty.
- Client Compensation: The bank refunded the overcharged amounts to affected clients.
- Enhancement of Controls: JPMorgan has improved its pricing frameworks and internal controls to prevent future occurrences.
Ongoing Investigations
MAS is conducting separate reviews into the individual RMs involved in the misconduct.
Implications
This enforcement action underscores MAS’s commitment to maintaining integrity in Singapore’s financial sector. Financial institutions are reminded of the critical importance of robust internal controls and transparent client communications to uphold trust and compliance.
To access the original regulatory reference click here
MAS Announces Significant Collaboration with Australian Government
On 4 December 2024, the MAS announced a significant collaboration with the Australian Government to advance sustainable infrastructure and decarbonisation efforts across Southeast Asia. This partnership underscores a shared commitment to environmental sustainability and regional development.
Key Highlights
- Investment Commitment: Australia has pledged US$50 million to Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative. This investment aims to mobilize public, private, and philanthropic capital to support the region’s decarbonisation and climate resilience efforts.
- Strategic Objectives: The collaboration focuses on accelerating the clean energy transition and promoting sustainable infrastructure development throughout Southeast Asia. By pooling resources and expertise, both nations aim to drive impactful environmental change in the region.
- Regional Impact: This partnership is poised to play a pivotal role in Southeast Asia’s journey towards a low-carbon future, addressing pressing climate challenges and fostering sustainable economic growth.
Statements from Leaders
MAS Managing Director, Mr. Ravi Menon, emphasised the importance of such collaborations in achieving regional sustainability goals. Australian officials echoed this sentiment, highlighting the mutual benefits of the partnership.
Broader Context
This initiative builds upon existing efforts, such as the Singapore-Australia Green Economy Agreement, which aims to enhance economic growth while ensuring environmental sustainability.
Conclusion
The Australia-Singapore collaboration represents a significant step towards a sustainable and resilient Southeast Asia. By leveraging combined strengths, both nations are set to make substantial contributions to the region’s sustainable development and decarbonisation objectives.
To access the original regulatory reference click here
MAS Unveals Strategic Priorities for Capital Markets
On 3 December 2024, the MAS unveiled its strategic priorities for capital markets in a dynamic global landscape. The focus is on fostering innovation, enhancing market resilience, and promoting sustainable finance.
Key Initiatives
- Innovation and Technology: MAS plans to leverage advanced technologies to streamline regulatory processes and improve market efficiency. This includes the development of platforms to facilitate cross-border financial activities and the adoption of artificial intelligence for regulatory compliance.
- Market Resilience: Strengthening the robustness of financial institutions against economic shocks is a priority. MAS aims to implement measures that ensure stability and confidence in Singapore’s financial markets.
- Sustainable Finance: MAS is committed to promoting green finance initiatives, encouraging investments that support environmental sustainability, and collaborating with international partners to develop frameworks for sustainable financial products.
These strategic priorities underscore MAS’s dedication to maintaining Singapore’s position as a leading global financial hub, adapting to evolving market conditions, and addressing emerging challenges in the financial sector.
