Regulation of OTC Derivatives and Singapore Regulatory Reforms
The Monetary Authority of Singapore (“MAS”) published a consultation paper on the proposed amendments to the Securities and Futures Act (the “SFA”) which proposes to extend the SFA to regulate OTC derivatives. The consultation paper clarified that contracts booked in Singapore are subject to the derivatives reporting obligations even if the contracts were not traded in Singapore. The consultation also proposes the following amendments to the SFA:
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simplify product definitions such as “securities” and “derivative contracts”;
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introduce a new part setting out the framework for short selling and short selling reporting requirements;
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strengthen the effectiveness of the enforcement regime to deter market misconduct; and
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widen the range of factors to be considered in recognizing a foreign collective investment scheme for offer to the public.
The proposals closed for comment on 24 March 2015.
Read the Consultation Paper on Proposed Amendments to the Securities and Futures Act
Securities-based Crowdfunding
The MAS has published a consultation paper setting out proposals and clarifications to facilitate access by corporates to alternative sources of funding through securities-based crowdfunding - a capital-raising approach that seeks to raise funds from a large number of individuals, typically, through an online platform. Securities offered may be debentures or shares and are subject to appropriate local regulation of securities. The MAS is seeking industry views on the proposed regulatory approach to allow securities-based crowdfunding by accredited and institutional investors. The consultation aims to strike a balance between facilitating investments in start-ups and small businesses whilst ensuring sufficient safeguards for investors.
Read the
Consultation Paper on Facilitating Securities-based Crowdfunding
Guidelines on Good Drafting Practices for Prospectuses
The MAS consulted the industry on good drafting practices for prospectuses to facilitate the understanding of offering documents by the investing public. The proposed guidelines aim to improve the readability of prospectuses by encouraging the use of plain English and the presentation of information in a clear, concise and logical manner. The consultation paper is in response to industry feedback from an earlier MAS Policy Consultation on Proposals to Facilitate Better Understanding of Prospectuses, published in October 2013.
Read the Public Consultation on Guidelines on Good Drafting Practices for Prospectuses
