SINGAPORE Law and Practice Contributed by: Kenneth Pereire and Lin YingXin, KGP Legal LLC
erty-specific risks, such as location, construc - tion and occupancy. Captive Insurance Regulators Captive insurers, writing insurance principally for risks related to their associated corporations, have specific licensing requirements and regula - tory oversight from MAS. Industry participants Captive insurers often tailor coverage to meet the unique risk profiles of their parent compa - nies, allowing for flexibility in policy terms and conditions. 9. Regtech 9.1 Regulation of Regtech Providers Regtech providers specialise in providing tech - nology-based solutions that help financial insti - tutions comply with regulations. Although the MAS has launched several schemes to promote regtech in the country, such as the Regtech Grant and the Digital Acceleration Grant schemes, these providers are not regulated in Singapore. 9.2 Contractual Terms to Assure Performance and Accuracy Provisions are dictated by both industry custom and regulation. Industry Custom In Singapore, contractual agreements between financial services firms and technology providers are meticulously crafted to ensure optimal per - formance, data accuracy and compliance with the regulatory framework set by MAS. From an industry custom standpoint, financial services firms may choose to impose contractual terms similar to those in a Quality Assurance Con -
tract or Service Level Agreements. Provisions regarding intellectual property rights, regulatory compliance and audit and monitoring rights are tailored to Singapore’s legal and regulatory land - scape, ensuring that financial institutions main - tain control, adhere to regulatory standards and uphold data integrity. Dispute resolution clauses can also be included, to align with the industry custom of Singapore’s robust legal framework. Regulation Contractual terms can also explicitly address data accuracy – to comply with PDPA. Secu - rity measures are also a focal point, with robust cybersecurity practices to safeguard sensitive financial data, required under MAS’ Technology Risk Management guidelines for financial institu - tions. Financial institutions must adhere to the MAS Guidelines on Outsourcing in implementing adequate risk management practices. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Traditional players in Singapore’s financial ser - vices sector are actively embracing blockchain technology to modernise and streamline opera - tions. Some institutions have already imple - mented blockchain solutions for cross-border payments, trade finance and digital identity verification, aiming to enhance efficiency and reduce costs. Collaborations between tradi - tional financial players and blockchain start-ups are also on the rise, fostering joint ventures and consortia focused on developing innovative blockchain applications tailored to Singapore’s financial landscape. These partnerships under - score a collective effort to leverage blockchain’s potential for transformative change in the indus - try.
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