fintech regulation singapore

All employees in Singapore, with the exception of seafarers, domestic workers and public officers, are covered under the EA. Register with us FREE, Professor Richard Macrory - University College of London, 12th Global Banking Innovation Forum & Expo. Singapore Enabling policies . Propine, a digital asset custody service provider, has “graduated” from the Monetary Authority of Singapore’s (MAS) Fintech Sandbox program. An overview of KPMG solutions, services and strategies for Fintech. December 8, 2020. The total number of fintech companies jumped to 1,000 in 2020, compared to just 100 in 2015. The report includes regulatory initiatives as one of the six indicators that determine the city’s Index Performance Score, which shows its importance as an international fintech hub, within in the global context. Fintech Singapore “Singapore’s regulator is skillfully strengthening its stake to become an important fintech hub,” reads Kapronasia’s Regulating Fintech in Asia report. FinTech Ofﬁce will enable a whole-of-government approach to develop the FinTech ecosys-tem in Singapore and support MAS’ vision of fostering a Smart Financial Center. The panel discussed how COVID-19 has catalysed the need for the digitisation of financial services - with regulation being no exception. Join exclusive members-only events, workshops, learning journeys and more! ESMA, for example, indicated that âits legal certainty and broader legal issues â such as corporate, contract, solvency and competition laws â need to be considered and clarifiedâ before DLT can be used for larger-scale financial purposes, while the FCA raised concerns that DLT could lead to a âlack of individual accountability at firmsâ. FILE PHOTO: A Razer Pay booth is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore March 21, 2019. Training Methodology Theory, case studies, Group discussions and multimedia-sharing. Singapore showed outstanding growth in the fintech sector in the last 5 years. These businesses would have to comply with all the regulations and legal frameworks that local businesses have to comply with in the conduct of their business. Securities and Futures Act, which regulates the activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities. All foreigners intending to work in Singapore must have a valid pass (also known as work visa) before they can commence work. Employees will be provided their required notice periods and salaries. Specifically for FinTech, the Monetary Authority of Singapore (MAS) has launched a “Financial Sector Technology and Innovation” scheme, an initiative that aims to allocate S$225 million over the next five years to help foster the domestic fintech … For listing on the Main Board, a Prospectus is required whereas for listing on the Catalist Board, an Offer Document is required. Although the rules and regulations in fintech are always changing, companies that manage to stay on top of them – like the aforementioned TechToPay – will see long term success. You will not continue to receive KPMG subscriptions until you accept the changes. One of the Asian Institute of Digital Finance's first projects is to build a data-sharing platform that can … Moreover, under the Trademark Act in Singapore, there is statutory protection for foreign businesses that are well known in Singapore (such as Apple or Nike) whereby these businesses can avail themselves of the rights and remedies provided under the act even without registering their trademarks. (Section 3 of the PDPA.). The firm said it intends to fulfil existing commitments to employees, partners and vendors, and work with the relevant authorities to ensure adherence to local laws and regulations. Yet even for asset managers that do not wish to engage heavily with fintech or are not looking to be a leader in innovation, the increasing regulatory pressure around organizational resilience demands a response. Ch'ng Li-Ling Many regulators are now also looking at fine-tuning the regulations surrounding security tests, checks and controls to keep pace with the accelerating pace of change. Other areas of growing regulatory concern include: robo-advice; crowdfunding, with some regulators proposing simplified rules for securitiesbased crowdfunding platforms; and continued interest in the implications of AI and big data. tax incentive schemes for enterprise investment or venture capital investment? Market advantages and Crypto Bans. How financial institutions can capitalize on today's risk and regulatory landscape for long-term success. Is Singapore – and more importantly, the Singapore model – the future of fintech? Please take a moment to review these changes. There is a list of authorised Full Sponsors on the SGX website. ... will be looking at closely in the fintech industry during a speech at the Singapore Fintech … Our privacy policy has been updated since the last time you logged in. Through the FinTech Ofﬁce, MAS will be able to go beyond the ﬁnancial industry to help nurture a wider FinTech ecosystem and engage the FinTech … + Can payment services be provided by non-banks, and if so on what conditions? The rules as originally written assumed a world in which people conducted business face-toface, with physical signatures on paper. IPOS also plays a significant role in supporting the growth of fintech innovations in Singapore. Fintech Regulation: New Law to Impact Mobile Wallet Operators in Singapore by Fintechnews Singapore October 16, 2018 Singapore is about to introduce a new law to prevent … We generally provide two core recommendations: MAS unveils S$30m grant to boost Singapore financial sector's cybersecurity capabilities, Creating innovative, competitive environments (PDF 376 KB). It has been reported that, as of 2019, almost half of the fintech businesses in Southeast Asia have chosen Singapore as their base. Singapore FinTech Association's success could only have happened with the help of our members community. Together with the Singapore FinTech Association, MAS has also published the FinTech. For Singapore, FinTech may be regulated under a wide range of legislation such as the Banking Act, Moneylenders Act, Payment Systems (Oversight) Act, Money-Changing and Remittance Business Act and Securities and Futures Act. Singapore FinTech Association's success could only have happened with the help of our members community. It is easy to see why. Let me first thank the organisers for inviting me to this important forum. Mandatory benefits that must be provided to staff include annual leave, medical leave, maternity leave, paternity leave and childcare leave. Companies will have to pay semi-skilled foreigners a minimum salary of S$2,400. In general, the sanctions provided under the PDPA are in the form of either a fine or an imprisonment term. Innovations and inventions that are man-made are classified as intellectual property (“IP”). 4.6 Are there any other regulatory regimes that may apply to fintech businesses operating in your jurisdiction? Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. Blockchain and Crypto. The other two key pieces of legislation in this area, the Corruption, Drug Trafficking and other Serious Crimes (Confiscation of Benefits) Act and the Terrorist (Suppression of Financing) Act apply generally, including to fintech businesses in Singapore. Standard Singapore Company Incorporation Compliance According to the Ministry of Finance (MAS) “All [fintech] businesses must be registered with the Accounting and Corporate Regulatory … The growth trajectory of Singapore’s FinTech industry has been impressive to date. Technologies such as robo-advice, blockchain and cryptocurrencies, and âbig dataâ are all on the regulatory radar, but addressing the heightened cybersecurity risks is clearly a top priority. Singapore is actively moving towards being a smart nation and the fintech sector is one of the fastest growing sectors in the country. Do your data privacy laws restrict international transfers of data? While in 2019 and beyond we see increasing divergence in worldwide regulatory standards in asset management, when it comes to facilitating fintech development, regulators appear to be of similar mind. Singapore has also made efforts to remain at the forefront of regulation and best practice. Bitcoin and other cryptocurrencies have also received a skeptical reception from regulators around the globe, with incidents such as the Coincheck hack from early 2018 receiving particular regulatory scrutiny. Indeed, this is a key theme o… 4.5 Please describe any AML and other financial crime requirements that may apply to fintech businesses in your jurisdiction. How much impact does the fintech industry have on influencing immigration policy in your jurisdiction? Owners of the trademark have exclusive use of the mark for the goods and services for which it is registered. ICLG - Fintech Laws and Regulations - The amount of the employer’s contribution is 17% of the employee’s salary. While cybersecurity may be regulatorsâ top concern, other fintech areas are also making waves. There are nearly 500 registered members of the Singapore FinTech Association – more than half of them in the payments space, with others in lending, wealth management, blockchain, data management and crowdfunding. Fintech regulation in Singapore * If you would like to learn how Lexology can drive your content marketing strategy forward, please email [email protected] . Issues relating to technological developments and their impact on the financial system loom large in today's event. Many fintech business use cases require the regular collection of large amounts of data, with sophisticated analytics being used to provide the best customer experience as well as prudential controls. Capital market products include securities, units in a collective investment scheme, derivatives contracts, and spot foreign exchange for the purpose of leveraged foreign exchange trading. Other than common law principles (such as the law on confidential information) that would apply, there is legislation that operates to govern these mechanisms for the registering of an IP right. Are there any particularly onerous requirements or restrictions that are frequently encountered by businesses? The FinTech Regulatory Sandbox enables financial institutions and FinTech players to experiment with innovative financial products or services in a live environment but within a well-defined space and … Trademarks – Trademarks can be registered through IPOS either online or in person. The three broad categories for foreigners intending to work in Singapore are Professionals, Skilled and Semi-skilled workers, as well as Trainees and Students. Singapore. Participants of this scheme were able to use IP as collateral for loans with the participating banks. The PDPA has no extra-territorial reach and only affects organisations established outside of Singapore if they conduct their businesses in Singapore or collect/process personal data in Singapore. The regulations that apply depend on the type of cryptocurrency/cryptoasset in question. 2.2 Are there any special incentive schemes for investment in tech/fintech businesses, or in small/medium-sized businesses more generally, in your jurisdiction, e.g. Fintech and KYC regulations Know Your Customer or KYC is a business practice for organizations to protect themselves and their customers from fraud. This entry was posted in Asia, Global, Politics, Legal & Regulation and tagged fintech sandbox, mas, monetary authority of singapore, sandbox express, singapore. The report says that both London and Singapore benefit from having all the key elements that support FinTech innovation in a single location with both having: access to significant markets in financial services; investors who are providing capital to fintech companies. Some of these rules are as follows: In this regard, there are no rules on the hiring of foreigners that are particular to fintech businesses. Fintech innovations continue to shape the financial sector around the globe. Bookmark the permalink . Regulators, financial institutions and investors are showing growing interest in FinTech development. 2019 was an important year for Singapore’s “Smart Nation” initiative: the country’s national bid to become “a leading economy powered by digital innovation” by growing and supporting the implementation of technological innovations across a number of different sectors.. Most jurisdictions have adopted policies to create the infrastructure for digital services. In Singapore, there are presently two sandbox options – Sandbox Express (since August 2019), which is mainly for fast-track approvals where the risks are low and well understood by the market, and the ordinary Sandbox (since 2016) for more complex business models where customisation is required to balance the risks and benefits of the experiment. The European Securities and Markets Authority (ESMA), Germanyâs Federal Financial Supervisory Authority (BaFin) and more have all created forums, cybersecurity panels and other methods to help develop appropriate approaches to the increasingly common problem of cybersecurity vulnerabilities. Patents are for the protection of inventive designs and processes. Under the EA, either party to a contract of service may provide his notice of intention to terminate the contract at any time. In addition to these steps, the Monetary Authority of Singapore (MAS) has also recently launched a US$30 million Cybersecurity Capabilities Grant to co-fund financial institutions’ establishment of global or regional cybersecurity centers of excellence in Singapore… The owner of the copyrighted material has exclusive right to publish, perform, broadcast or adapt the work. 8 . Fintech is a priority for todayâs asset management firms, many of which see such technologies as the key to maintaining a competitive edge. 3.1 Please briefly describe the regulatory framework(s) for fintech businesses operating in your jurisdiction, and the type of fintech activities that are regulated. You will not receive KPMG subscription messages until you agree to the new policy. Fintech Hub. He was one of the guest speakers at the panel on ‘Financial Technology, challenges and rewards, and the role of prudential supervision.” It goes without saying that in … 2.4 Have there been any notable exits (sale of business or IPO) by the founders of fintech businesses in your jurisdiction? As such, the Singapore government provides funding, through the different schemes, to help startups grow their businesses through the early stages. Published: … The regulatory body overseeing the Payment Services Act is the MAS. The move appears to be a nod toward more regulations in China's burgeoning fintech sector. Â© 2021 KPMG Services Pte. The Computer Misuse Act, the purpose of which is to secure computer material against unauthorised access or modification. Fintech Firms in Singapore Secure Record High $462 Million in Equity Funding, and $650 Million in Total during H1 2020 Members Only Exchange, … The GFIN conceptualised a “global sandbox” in which fintech firms can pilot and scale their solutions in multiple jurisdictions simultaneously. Singapore showed outstanding growth in the fintech sector in the last 5 years. MAS has … Further, all employers are required to contribute to their employee’s Central Provident Fund. In Singapore, you can either register a trademark or seek protection under the common law right of “passing off”. Insurance Act, which regulates the insurance business in Singapore, insurers, insurance intermediaries and related institutions. This country-specific Q&A provides an overview of Fintech laws and regulations applicable in Singapore. Find out how KPMG's expertise can help you and your company. Fintech regulation Drivers . Therefore, employers are prohibited from dismissing employees due to their age if they are below 62 years old. In Singapore, if it is a well-known mark, the owners exclusive use of the mark extends to different industries even where there is no risk of public confusion. Startup SG Infrastructure – provides infrastructural support for startups, multipliers and investors. The regulations relating to the monetising of IP will be the same as the regulations in force in the banking sector at the relevant point in time. While regulators have updated rules over past decades, the accelerated pace of change means that regulators are now constantly playing catch-up with the implications of the newest innovations. The terms of a person’s employment will most likely be set out in his contract of service with his employer. As the sector matures in the coming few years, later-stage funding will also develop. Fintech Regulations. Yes, the collection, use and transmission of personal data is regulated in Singapore. 4.2 Do your data privacy laws apply to organisations established outside of your jurisdiction? minimum consolidated pre-tax profit of at least S$30 million for the latest financial year with an operating track record of at least three years; profitable in the latest financial year, and has a market capitalisation of not less than S$150 million based on the issue price and post-invitation issued share capital with an operating track record of at least three years; or. This is to be paid in addition to the agreed salary between the parties. RHT Law, The International Comparative Legal Guides and the International Business Reports are published by: Global Legal Group, The added profile it gave to the Centre and our LLM courses as they were developing was especially helpful, and I am very grateful for the opportunity to have been involved. The Singapore Government is keen to develop Singapore as an IP hub of Asia and in doing so, recognises that there are several ways to help companies who are more IP rich than asset rich to monetise such assets. In this regard, the Computer Misuse Act sets out the various penalties for the different cybersecurity offences. What are the sources of payments law in your jurisdiction? This scheme was concluded in March 2018. Related topic hubs 5.3 What, if any, hurdles must businesses overcome to bring employees from outside your jurisdiction into your jurisdiction? Example cryptocurrency-based businesses ) may also be subject to any conditions it deems fit impose... Penalties such as blockchain, is one area under particular scrutiny Ayondo markets Limited to a Netherlands-registered company for $... Can Payment services be provided to staff include annual leave, paternity leave and childcare.! Sector is one of the KPMG global organization Please visit https: //home.kpmg/governance under the EA and )! 1,100 in 2015 would typically involve the collection, use and transmission personal! Online or in person platform can be registered: a patent ; a copyright ; or a.! Before applying for the different types of fintech innovations can provide important competitive advantages, including benefits the... Can help you and your company in may, the owner is free dictate... Debt ) is to secure computer material against unauthorised access or modification the sanctions imposed under EA! Forefront of regulation and best practice world in which fintech firms can pilot scale. Prohibited or restricted in your jurisdiction Russia covers a broad overview of KPMG solutions, services and strategies for.. Sector, compared to just 100 in 2015 law remedies such as fines and imprisonment official registration of before! The work this was sparked by the much anticipated Payment services Act which! 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