On Sep. 12, SIN MAS proposed extending statutory bail-in to insurers.
SIN MAS published a consultation paper on proposed amendments to the Financial services and markets (resolution of financial institutions) regs 2024 (FSM regulations).
Follows SIN MAS Dec. 2023 issued notice re resolution in insurance sector, #186438.
Amendments
Extend the statutory bail-in regime to the insurance sector, by scoping in Singapore-incorporated licensed insurers and designated insurance holding companies as Division 6 FIs, expanding scope of eligible instruments to cover instruments issued by them.
Introduce a new regulation under Part 6 of the regulations in order to prescribe the maximum duration of two business days for stays on reinsurance contracts.
Consultation End
The consultation closes on Oct. 11, 2024.
Dec. 2024 Response to Feedback
On Dec. 12, 2024, SIN MAS issued response to feedback re proposed amendments.
SIN MAS received no objections to proposed amendments during consultation period.
Reminded DFHC (licensed insurers) and insurers that contracts governing eligible instruments must include provisions specified in FSM regulations 30(1) and 30(2).
They must also comply with disclosure requirements under the regulation 31(1).
Implementation date set for Dec. 31, 2024.
Regulators
SIN MAS
Entity Types
IHC; Ins
Reference
Rsp, Cir ID 19/24, 12/12/2024; CP P008-2024, 9/12/2024
