Singapore has a flourishing economy and is a very wealthy and business friendly destination. They have one of the highest standards of living and a thriving investment industry. Singapore has seen an influx of businesses from all sectors, including various financial companies and Forex brokers. These businesses have made Singapore a financial powerhouse in Asia, with at least $300 billion worth of trading occurring in a single day. With such a powerful and massive market like this, the country needs a powerfully competent financial regulator. The regulatory authority responsible for managing the financial success in this country is the Monetary Authority of Singapore (MAS).show more
Singapore’s financial regulation is implemented and operated by the government of Singapore. MAS has been making a significant impact on the financial markets in the country since it’s inception in 1971. The regulatory authority has grown over the years and now oversees and administers statutes pertaining to money, banking, insurance, securities and other financial entities, as well as the issuing of currency. The success of MAS regulation has made Singapore the fifth largest Forex center in the world. It has achieved this status through the agency’s regulatory reforms and ability to modify the economy to suit global markets.
The agency is responsible for the regulation and supervision of all Forex brokers offering their services in Singapore. As well, the MAS takes on the role as the Central Bank of Singapore, which includes the roles of regulating all financial firms operating in the country. With these roles, it undertakes the responsibility of maintaining a safe, secure, and transparent economy. However, unlike many other central banks around the world, the MAS does not affect any rate changes of the Singapore Dollar (SGD). Although, the MAS does act as a banker to the government and other financial entities.
A major part of the Monetary Authority of Singapore is the protection of investors. Everything they do and all the services they provide, are in place for the protection of investors by safeguarding the integrity of financial markets. One of the largest areas of protection the MAS provides investors, is the prevention of fraud and financial abuse. They achieve this level of protection by making it mandatory for all financial firms or entities providing services out of Singapore to adhere to their strict regulatory guidelines.
MAS regulated brokers enjoy a relatively free and uninterrupted marketplace from MAS and the government. However, they must follow some guidelines to maintain a free and transparent marketplace. First of all, all Forex brokers in Singapore must be regulated by MAS. This means they must comply with and pass the examination process for MAS licencing. As well as rewarding licences, MAS can also revoke licences if brokerages fail to withhold the guidelines implemented by them. All brokers are under constant supervision and must file periodic audit reports to ensure financial compliancy. As well, brokers are required to hold client funds in separate accounts.