"Financial Services and Markets (Amendment) Bill" - Second Reading Speech by Mr Alvin Tan, Minister of State for Foreign Affairs and National Development, and Board Member of the Monetary Authority of Singapore (MAS), on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Energy, Trade
AI Analysis
On 2026-10-06, MAS presented the Financial Services and Markets (Amendment) Bill 2026 for second reading. The Bill would give MAS statutory authority to impose total loss-absorbing capacity requirements on Singapore domestic systemically important banks (DSIBs), while expressly extending MAS supervision and certain assistance powers to proliferation-financing risks; it is not yet an operative requirement and the commencement date remains to be appointed by Gazette notification.
Key dates
- 2026-05-13
- MAS published its consultation on proposed TLAC requirements for Singapore DSIBs and draft amendments to the Financial Services and Markets Act 2022.
- 2026-06-04
- The published consultation materials stated the proposed external TLAC level of 14% of risk-weighted assets for local-bank DSIBs; the consultation period ran through June 2026.
- 2026-09-08
- The Financial Services and Markets (Amendment) Bill 2026 was introduced for first reading in Parliament.
- 2026-10-06
- Second reading speech delivered by Alvin Tan on behalf of the Minister-in-charge of MAS.
Suggested considerations
- DSIBs should consider mapping existing capital, subordinated debt, eligible senior unsecured debt and other potentially qualifying resources against the proposed TLAC eligibility criteria, without assuming that consultation proposals are final.
- DSIBs should consider modelling the potential impact of the consulted 14% of risk-weighted assets external-TLAC level, including the proposed exclusion of capital conservation buffer CET1 from double-counting and any applicable leverage or internal-TLAC requirements.
- DSIBs should consider reviewing funding, issuance and investor-distribution strategies because instruments issued to Singapore retail investors may not qualify as TLAC under the consulted framework.
- DSIBs should consider preparing systems and governance for TLAC reporting, public disclosure, data ownership, instrument eligibility attestations and eventual implementation-period tracking.
- All MAS-supervised financial institutions should consider refreshing proliferation-financing risk assessments, customer and transaction-screening controls, escalation procedures and management information so that controls clearly address proliferation-financing risks separately from money laundering and terrorism financing.
- Compliance teams should consider reviewing information-sharing and supervisory-cooperation procedures for requests involving proliferation-financing supervision by MAS, Singapore authorities or foreign counterpart authorities.
- Legal and regulatory teams should monitor Parliament's passage of the Bill, subsidiary legislation, MAS notices or regulations, and the Gazette commencement notification before treating the proposed obligations as legally effective.
What changed
The Bill would insert a new Division 3 in Part 7 of the Financial Services and Markets Act 2022, empowering MAS to require notified Division 6 financial institutions, including Singapore DSIBs, to maintain a minimum level of TLAC. The framework is expected to address the required TLAC level, eligible instruments and other financial resources, public disclosures, reporting and implementation timing. MAS's May-June 2026 consultation proposed external TLAC of 14% of risk-weighted assets for local-bank DSIBs, a five-year compliance period from notification, restrictions on retail-held instruments counting toward TLAC, and internal TLAC treatment for foreign-bank DSIBs; those consultation proposals should not be treated as final until MAS issues the operative rules or notices. The Bill would al
Compliance impact
The immediate impact is primarily preparatory because the speech describes enabling legislation rather than a final TLAC ratio, instrument rule or compliance deadline. If enacted and commenced, DSIBs may face material capital-structure, funding-cost, reporting and disclosure consequences, while all MAS-supervised institutions should expect more explicit supervisory scrutiny of proliferation-financ
Who is affected
Related regulations
References
AI-generated analysis. May contain errors or omissions — verify with the original MAS source before acting. Full disclaimer.
What the MAS said
Second Reading Speech by Mr Alvin Tan, Minister of State for Foreign Affairs and National Development, and Board Member of MAS, on behalf of the Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), on 6 Oct 2026.
Published by MAS . Read the full notice at the source for the authoritative text.