Financial Services and Markets (Amendment) Bill introduced to empower MAS to impose total loss-absorbing capacity requirements on systemically important financial institutions
29 September 2026
On 8 September 2026, the Financial Services and Markets (Amendment) Bill (“Bill”) was introduced for first reading in Parliament. The Bill seeks to empower the Monetary Authority of Singapore (“MAS”) to require systemically important financial institutions to maintain a minimum level of total loss-absorbing capacity (“TLAC”). This measure will complement MAS’ existing power to bail in subordinated debt and eligible senior unsecured debt to bolster the solvency of a distressed financial institution.
Key amendments
The Bill inserts a new Division 3 in Part 7 of the Financial Services and Markets Act 2022 (“FSMA”) to empower MAS to impose TLAC requirements on Division 6 financial institutions.
The Bill also includes technical amendments to the FSMA for alignment with updated Financial Action Task Force Standards relating to countering the financing of proliferation of weapons of mass destruction, and consequential and related amendments to other Acts within MAS’ purview.
The legislative amendments will come into operation on a date that the Minister appoints by notification in the Gazette.
Background
MAS published a consultation paper seeking feedback on the amendments on 13 May 2026. In its explanatory brief released on 8 September 2026, MAS stated that comments received have been considered and incorporated, where appropriate, in the Bill. For more information on the consultation paper, please refer to our article “MAS consults on proposed total loss absorbing capacity requirements for domestic systemically important banks in Singapore”.
Reference materials
The following materials are available on the Parliament website www.parliament.gov.sg and the MAS website www.mas.gov.sg: