Regulatory Updates – Q4 2025
The Monetary Authority of Singapore (MAS) has issued several important regulatory updates this quarter that impact financial institutions, fund managers, and digital marketers.
17 December 2025 - Consultation Paper on Updates to the Guidelines on Liquidity Risk Management Practices (Fund Management Companies)
The proposed updates seek to strengthen liquidity risk management for collective investment schemes by enhancing alignment between portfolio liquidity and redemption terms, encouraging the adoption of a broader range of liquidity management tools (including anti-dilution tools), and requiring FMCs to take a more holistic view of liquidity risks, including those arising from leverage, derivatives, and margin or collateral calls. The Monetary Authority of Singapore (MAS) has also proposed amendments to the Code on Collective Investment Schemes to clarify expectations on eligible deposits for money market funds.
To view the Consultation Paper, please click Consultation Paper on Updates to the Guidelines on Liquidity Risk Management Practices (Fund Management Companies)
04 December 2025 - Thematic review of Financial Institutions’ recruitment and onboarding training of representatives
This Information Paper sets out MAS supervisory expectations, good practices observed, and areas for enhancement arising from its thematic review of selected financial institutions. The review focuses on the recruitment and onboarding of representatives, monitoring of representatives with adverse information, onboarding and continuing training programmes, and related areas such as the engagement of assistants by representatives and oversight of outsourced activities. MAS underscores the critical role of Boards and senior management in establishing strong governance, effective supervision, and robust training frameworks to ensure the ongoing fitness and propriety of representatives.
To view the Information Paper, please click Thematic review of Financial Institutions’ recruitment and onboarding training of representatives.
14 November 2025 - Guide on the Tokenisation of Capital Markets Products
On 14 November 2025, MAS issued the “Guide on the Tokenisation of Capital Markets Products”.
The Guide provides general regulatory guidance on the application of securities law and other relevant legislation to (i) the issuance and offering of tokenised capital markets products (CMPs), and (ii) entities that facilitate activities relating to such tokenised CMPs across the capital markets value chain. MAS reiterates its technology-neutral approach of “same activity, same risk, same regulatory outcome”, and sets out expectations on licensing, disclosure, custody, AML/CFT obligations, and governance considerations for tokenisation activities.
To view the Guide, please click Guide on the Tokenisation of Capital Markets Products.
13 November 2025 - Consultation Paper on Proposed Guidelines on Artificial Intelligence Risk Management for Financial Institutions
On 13 November 2025, MAS released a Consultation Paper on the Proposed Guidelines on Artificial Intelligence (AI) Risk Management for Financial Institutions.
The proposed Guidelines set out MAS’ supervisory expectations on the governance and management of AI-related risks across financial institutions. Key areas include Board and senior management oversight of AI use, AI risk management frameworks, policies and procedures, controls across the AI life cycle, and the capabilities and resources required to deploy AI responsibly. The Guidelines are intended to complement MAS’ FEAT principles, as well as national AI governance initiatives such as the IMDA’s Model AI Governance Framework and the AI Verify Foundation.
To view the Consultation Paper, please click Consultation Paper on Proposed Guidelines on Artificial Intelligence Risk Management for Financial Institutions.
13 November 2025 - October 2025 FATF Statement
In November 2025, MAS published the October 2025 FATF Statement.
The statement highlights that the Democratic People’s Republic of Korea (DPRK) and Iran continue to remain on the FATF’s list of “High-Risk Jurisdictions subject to a Call for Action”, and financial institutions are expected to apply counter-measures and enhanced due diligence when dealing with persons or entities linked to these jurisdictions. MAS also reiterated that Myanmar remains subject to enhanced due diligence requirements due to ongoing AML/CFT deficiencies, while clarifying that no additional counter-measures (beyond EDD) have been called for. Financial institutions are reminded to remain vigilant, comply with applicable sanctions regulations, and adopt appropriate risk mitigation measures in line with MAS guidance and FATF standards.
To view the FATF Statement, please click October 2025 FATF Statement.
24 October 2025 - Consultation Paper on Measures to Enhance Investor Recourse Avenues in Market Misconduct Cases
On 24 October 2025, MAS released a Consultation Paper on Measures to Enhance Investor Recourse Avenues in Market Misconduct Cases.
The consultation seeks feedback on proposed measures to strengthen investor protection and confidence by enhancing avenues for investors to seek compensation arising from market misconduct. Key proposals focus on facilitating collective investor actions, improving access to funding for meritorious claims, and reducing legal and procedural barriers to civil action, while maintaining appropriate safeguards against frivolous litigation. The proposed measures are intended to complement MAS’ enforcement actions and support a robust disclosure-based regulatory regime.
The consultation is open for feedback until 31 December 2025.
To view the Consultation Paper, please click Consultation Paper on Measures to Enhance Investor Recourse Avenues in Market Misconduct Cases.
14 October 2025 - Consultation Paper on Proposed Amendments to Related Party Transaction Requirements for Banks
On 14 October 2025, MAS released a Consultation Paper on Proposed Amendments to Related Party Transaction (RPT) Requirements for Banks.
The consultation proposes enhancements to MAS’ RPT framework to strengthen oversight of banks’ transactions with related parties, mitigate conflicts of interest, and align with updated international standards issued by the Basel Committee on Banking Supervision. Key proposals include expanding the definition of related parties, refining exclusions for intragroup transactions, consolidating and enhancing exposure limits across related party groups, and streamlining requirements under MAS Notices 643, 643A and 656. MAS has also outlined a proposed implementation timeline to allow banks sufficient time to prepare for compliance.
The consultation is open for feedback until 14 November 2025.
To view the Consultation Paper, please click Consultation Paper on Proposed Amendments to Related Party Transaction Requirements for Banks.
08 October 2025 - Guidelines on Licensing for Payment Service Providers [PS-G01] (w.e.f 8 October 2025)
These Guidelines, issued by MAS, set out the regulatory framework governing the licensing of payment service providers under the Payment Services Act 2019. They provide guidance on licence types, admission and fit-and-proper criteria, application requirements, governance and ownership expectations, minimum compliance arrangements, and ongoing regulatory obligations. The Guidelines also outline supervisory expectations in key areas such as AML/CFT, technology risk management, safeguarding of customer monies, audit requirements, and regulatory reporting, and are intended to ensure that payment service providers operate in a sound, well-governed, and compliant manner.
To view the guidelines, please click Regulations and Guidance.
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