The Payment Services Act 2019 (“PS Act”) which repeals the Payment Services (Oversight) Act (“PSOA”) and the Money-Changing and Remittance Business Act (“MCRBA”), was brought into force on 28 Jan 2020.

2.            With MAS regulating more types of payment services in the PS Act than the MCRBA and PSOA, consequential amendments have been made to the definition of “financial institution” in the Fourth Schedule to the Accountants (Public Accountants) Rules and the definition of “relevant financial institution” in Reg 89A(2) of the Companies Regulations.

3.            The changes to these definitions are as follows:

  Current Provision  Amended Provision 
Definition of “financial institution” in the Fourth Schedule to the Accountants (Public Accountants) Rules  Financial institutions are —

(a) Entities that are part of the banking and payment systems (namely, banks, financial institutions approved under section 28 of the Monetary Authority of Singapore Act (Chapter 186), operators of designated payments systems, holders of widely-accepted multi-purpose stored value facilities (including all holders of multi-purpose stored value facilities in excess of $30 million, whether approved or exempted), remittance agents and finance companies);

...

Financial institutions are —

(a) Entities that are part of the banking and payment systems (namely, banks, financial institutions approved under section 28 of the Monetary Authority of Singapore Act (Chapter 186), operators of payment systems designated in section 42 of the Payment Services Act 2019 (Act 2 of 2019), settlement institutions of payment systems designated under section 42 of the Payment Services Act 2019, persons that have in force a standard payment institution licence granted under section 6 of the Payment Services Act 2019, persons that have in force a major payment institution licence granted or deemed to have been granted under section 6 of the Payment Services Act 2019 and finance companies);

...

Definition of “relevant financial institution” in Reg 89A(2) of the Companies Regulations In paragraph (1)(b), “relevant financial institution” means —

...

(g) a holder of a remittance licence under the Money‑changing and Remittance Businesses Act (Cap. 187);

(h) an operator of a designated payment system, as designated under section 7 of the Payment Systems (Oversight) Act (Cap. 222A);

(i) an approved holder of a widely accepted stored value facility within the meaning of section 2(1) of the Payment Systems (Oversight) Act;

In paragraph (1)(b), “relevant financial institution” means —

...

(g) a person that has in force a standard payment institution licence granted under section 6 of the Payment Services Act 2019 (Act 2 of 2019);

(h) a person that has in force a major payment institution licence granted or deemed to have been granted under section 6 of the Payment Services Act 2019;

(i) an operator of a payment system designated under section 42 of the Payment Services Act 2019;

(ia) a settlement institution of a payment system designated under section 42 of the Payment Services Act 2019; 

4.            Public accountants should note the revised definitions, which would impact the definition of “public interest entity” for the purposes of the Code Of Professional Conduct And Ethics For Public Accountants and Accounting Entities, and the definition of “public interest company” for the purposes of the requirement for consent for resignation of auditors under section 205AA of the Companies Act.

5.            For further details on the amendments to Accountants (Public Accountants) Rules and the Companies Regulations, please refer to the following links:
  • Accountants (Public Accountants) (Amendment) Rules 2020 
  • Companies (Amendment) Regulations 2020
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    6.            For more information on the Payment Services Act, please click here.

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