The smartest financial regulator on earth is in Singapore

Very interesting discourse by Singapore's financial regulator (MAS), basically telling banks that it will let them take their responsibilities and experiment with new products and services that will be regulated afterwards. After the Korean regulator announcing a more [flexible stance](, are we finally seeing innovation friendly regulators? _While seeking to ensure cyber security, MAS’s regulatory approach towards fostering innovation and the adoption of new technologies will let financial institutions own innovation._ _In matters of innovation, time to market is critical. Financial institutions are free to launch new ideas without first seeking MAS’ endorsement, as long as they are satisfied with their own due diligence._ _A recent case that went on this approach was a mobile banking application that utilised fingerprint authentication for balance enquiries. The bank went ahead, did not need MAS approval._ _Financial institutions’ board and management should take the responsibility to ensure that the risks of new innovative offerings are well identified and managed. The compliance people should ideally be involved early in the innovation process. However, they should avoid second-guessing MAS by taking an overly conservative stance that might nip innovation in the bud. If the financial institutions encounters a specific issue on which it needs MAS’ guidance, we will be happy to help. But the financial institutions must offer its own assessment of the risks in what it proposes to do and take ownership for its decisions. It cannot rely on MAS to do its due diligence._


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