MAS Circular: Supervisory Priorities for Capital Markets Entities in 2026/27

Executive Summary – Governance, Risk Management, and Technology

The Monetary Authority of Singapore (MAS) has issued its supervisory priorities for Capital Markets Entities¹ on 23 April 2026. This circular highlights key topics on the MAS’s radar for the year ahead and serves as an important guide for firms to align their governance and risk management efforts accordingly.

There is a consistent emphasis on strong governance, robust risk management, and reliable technology infrastructure. MAS expects these to be applied in a risk-proportionate and outcomes focused manner — enabling firms to grow sustainably while maintaining the fairness, integrity, and transparency that underpin investor confidence in Singapore’s capital markets.

Trust, Culture, and Customer Outcomes

MAS continues to place significant weight on fair dealing and sound business conduct. Key developments to watch include:

• AML/CFT: MAS will work with the industry to provide additional guidance on risk-proportionate and operationally practical AML/CFT practices, so as to achieve balance between compliance and business needs.
• Fair Dealing: MAS conducted examinations of complaints management practices at key retail banks and insurers. Findings from these reviews shall be shared with the broader industry to uplift standards and strengthen customer trust.
• Culture: An information paper on essential culture capabilities will be published to help firms identify and address behavioural and cultural drivers that undermine controls and customer outcomes.
• Seniors: MAS is working with industry associations to improve financial service delivery to elderly clients and simplify estate administration procedures — measures that may be extended to Capital Markets Entities over time.
• Anti-Scam: Efforts to enhance anti-scam capabilities are ongoing. Key initiatives include new authentication solutions, an AI-enabled fraud detection pilot, enhanced Paynow system protection, and stronger controls against unauthorised trading in retail broking accounts.

Operational, Technology, and Cyber Resilience

MAS has been actively working to improve operational resilience across four pillars: operational risk management, technology and cyber risk management, third-party risk management, and business continuity management. Recent and upcoming regulatory developments include:

• Operational & Third-Party Risk: MAS has issued consultations on updated Guidelines on Operational Risk Management and Third-Party Risk Management.
• Technology Risk Management: There are planned consultations coming up for updates to MAS Notices on Technology Risk Management, covering IT asset management, continuous system monitoring, and enhanced oversight of critical systems.
• Cyber security: MAS is reminding firms to strengthen cyber defences particularly in view of the increased risk of AI advancements.
• AI Risk Management Guidelines: MAS is planning to finalise the guidelines on AI Risk Management in 2026, setting clearer expectations for responsible AI Adoption across capital markets.

Financial Resilience

Against a backdrop of economic uncertainty and market volatility, MAS expects firms to proactively manage business and financial risks. Specific areas of focus include:

• Liquidity Risk for Fund Management Companies (FMCs): Updated Guidelines on Liquidity Risk Management for FMCs will be published later this year, aimed at better aligning redemption terms with fund asset liquidity and strengthening governance around liquidity management tools.
• Environmental Risk: FMCs are expected to continue engaging portfolio companies on climate-related risks, improving data collection, and enhancing climate scenario analysis. The final Guidelines on Transition Planning for banks, insurers and asset management were published in March 2026.

Looking Ahead

MAS has signalled its commitment to keeping its regulatory approach appropriately calibrated across diverse business models, and to leveraging technology for sharper risk surveillance. The ongoing Equities Market Review is a notable example, with MAS shifting towards a more disclosure-based regime to support the sustainable growth of Singapore’s equity market.

For firms, the year ahead presents both heightened expectations and meaningful opportunities. Organisations that proactively strengthen governance, modernise their risk frameworks, and invest in resilient technology infrastructure will be best positioned to meet MAS’s evolving standards — and to differentiate themselves in an increasingly competitive market.

Key Areas Firms Should Prioritise in 2026/27

• Strengthen governance and board oversight to ensure decisions remain aligned with MAS’s risk‑proportionate expectations.
• Enhance technology and cyber resilience, especially in light of AI‑driven threats and upcoming TRM updates.
• Modernise AML/CFT and conduct‑risk frameworks to align with MAS’s focus on fair dealing and customer outcomes.
• Improve liquidity and environmental risk management, particularly for FMCs navigating new guidelines.
• Review third‑party and operational risk controls ahead of updated MAS guidance.

A Practical Readiness Checklist

Firms should consider whether they have:

• Clear ownership of regulatory change management across compliance, risk, and technology teams.
• Up‑to‑date policies and procedures aligned with MAS’s latest consultations and guidelines.
• Robust data governance and monitoring capabilities, including AI‑related controls.
• Documented stress tests, scenario analyses, and resilience plans that reflect current market conditions.
• A roadmap for digital transformation that supports both compliance and commercial objectives.

Strategic Opportunity for Forward‑Looking Firms

This is an opportune moment for leadership teams to reassess their operating models, accelerate digital transformation, and embed AI‑driven controls that enhance efficiency, reduce compliance friction, and improve customer outcomes. Firms that take early action can not only achieve regulatory alignment but also unlock strategic advantages such as faster onboarding, improved risk visibility, and stronger investor confidence.

How can Waystone help?

We support regulated firms in navigating MAS’s evolving supervisory expectations with end‑to‑end compliance, governance, and risk‑management solutions. Our team works closely with organisations to strengthen frameworks, uplift operational resilience, and prepare for regulatory developments across governance, technology, AML/CFT, conduct, and financial risk.

We are committed to helping you build a resilient, future‑ready compliance environment — enabling your leadership team to focus on growth, innovation, and delivering strong outcomes for clients and investors.

If you have any questions about the topics discussed, or would like to learn more about how our APAC Compliance Solutions team can support your MAS obligations, please contact your usual Waystone representative or reach out to us via the link below:

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¹All Approved Exchanges, Approved CIS Trustees, Approved Clearing Houses, Capital Markets Services Licence Holders, Central Depository System, Financial Advisers Licence Holders, Exempt Person Providing Capital Markets Services, Exempt Person Providing Corporate Finance, Exempt Financial Advisers, Exempt Insurance Brokers, Exempt Trust Company, Licensed Trade Repositories, Licensed Trust Company, Recognised Market Operators, Recognised Clearing Houses and Registered Insurance Brokers.