Financial Services Regulatory Compliance 

As the financial industry evolves post-crisis and the global regulatory community now looking hard at how to strengthen rules, much more is expected of financial institutions in the area of managing compliance risk. As the new rules are introduced and existing ones being tightened, financial institutions are faced with a host of challenges in keeping abreast of these changes, and putting in place an effective and dynamic compliance framework that is responsive to market and regulatory development.
Financial Services Regulatory Compliance
Financial institutions face multiple challenges in this financial landscape that evolves constantly. Adjustments are needed to their business planning and test models to incorporate the new requirements and ensure effective compliance. Process and system enhancements are required to cope with the increasing demands on the additional disclosure requirements as well as the accuracy and timeliness of information. Innovative products that are constantly being rolled out need to be duly reported and regulatory implications carefully thought through.

Entry barriers to the financial industry will rise, even as the gap between big and smaller players widens. Financial institutions will need to better organise their systems and processes for managing risk, capital and liquidity as well as to carry out stress-testing, amongst others.

How we can help

KPMG's Regulatory Compliance team provides a range of services to assist your financial institution in fulfilling its regulatory and compliance obligations. We recognise that every financial institution is unique in its challenges and issues it faces. We are here to customise our services to best suit your financial institution's needs.

Our core services include:

KPMG's licensing & compliance related services extend to the following institutions:
  • Local Banks
  • Qualifying Full Banks
  • Foreign Full Banks
  • Wholesale Banks
  • Merchant Banks
  • Offshore Banks
Capital Markets Services License ("CMSL") Holders which carry out the following regulated activities
  • Dealing in securities
  • Trading in futures contracts
  • Leveraged foreign exchange trading
  • Advising on corporate finance
  • Fund management
  • Real estate investment trust management
  • Securities financing
  • Custodial services for securities
Financial advisors regulated under the Financial Advisors Act
Exempt fund managers and exempt financial advisors

The KPMG difference

Our dedicated Financial Services Regulatory & Compliance (FSRC) unit comprised of ex-regulators and professionals with broad ranging experience in advising and working with financial institutions. Leveraging on our insightful knowledge and sound understanding of the regulatory requirements within the financial services industry, we are able to assist you in understanding and responding to increased challenges that banks and other financial institutions face in the regulatory regime. Our team of motivated professionals with up to date regulatory knowledge, will work with you to deliver prioritised, practical and realistic solutions and recommendations.

  • KPMG is a market leader in the audit of banks in key financial centres globally
  • KPMG is a leader in the audit of financial institutions in Singapore
  • KPMG Singapore has a large group of financial services professionals; 500 staff lead by 30 highly qualified partners
  • KPMG Singapore partners have been conducting seminars on Banking Laws and Regulations over the past 20 years
  • KPMG Singapore has worked with the local regulator, MAS on a number of projects, secondment and made a number of presentations
  • Our Advisory and Audit Clients in Asia Pacific include: OCBC; DBS Group; Citibank; Standard Chartered Bank; Australia and New Zealand Banking Group Limited; Macquarie Bank Limited; Merrill Lynch International Bank; Mitsubishi UFJ Financial Group; State Bank of India and Bank of India.

Success Stories

Client needs How KPMG helped Outcomes
  • Application of Exempt status for regulated activities under the Securities and Futures Act ("SFA")
  • Application of Capital Markets Services License ("CMSL") for regulated activities under the SFA.
  • Provided templates and list of documents required for the license application for client to complete.
  • Reviewed and commented on draft and final application forms and supporting documents before submission to the Monetary Authority of Singapore ("MAS").
  • Provided advice and commented on various information presented to the MAS.
  • Provided advice on key regulatory requirements and updates on new regulatory regime for fund management companies("FMC").
  • Assisted the company in liaison with MAS in relation to the application and submission.
  • Followed up on clients' queries pertaining to Exempt status or CMSL application.
  • Joint engagement with Tax Advisory Service to provide services in Tax and Regulatory advisory to enhance the clients' business models.
  • Identification of issues coupled with the feedback from selected personnel enabled client to enhance the quality and delivery of the documentation and application process.
  • Pre-empted any potential issues and assisted the company in securing the exempt status or CMSL in a shorter waiting period.
Local Branch of a Global Bank
Assessment of the accuracy in the submission of various regulatory returns to the Monetary Authority of Singapore ("MAS")
  • Performed walkthrough to understand the reporting process so as to identify any potential risk that data may fail to be reported or wrongly reported by ascertaining whether effective controls are in place.
  • Assessed accuracy of the regulatory returns submitted to MAS by reviewing the means, methods of computations and relevant documents used to prepare the regulatory returns against the requirements prescribed by MAS to identify potential gaps.
  • Provided explanation on how data should be appropriately computed and reported in line with regulatory requirements and expectations.
Identification of issues and recommendations provided enabled client to enhance accuracy in the submission of their regulatory returns.
Local Branch of an European Bank
Assessment of anti-money laundering / countering of financing of terrorism ("AML/CFT") control environment for compliance with MAS Notice 626 and guidelines issued by the regulator.
  • Identified gaps in the AML/CFT policies and procedures in relation to regulatory requirements to improve compliance with the requirements.
  • Reviewed adequacy of processes in place to manage and mitigate the AML/CFT risk exposures and recommendation on improvements to meet regulatory expectations.
  • Shared industry best practices to enhance AML/CFT processes.
Identification of issues and recommendations provided enabled client to enhance the AML/CFT control environment to better manage its AML/CFT risk and address potential regulatory concerns.