On 6 March 2026, the Monetary Authority of Singapore’s (“MAS”) published a Consultation Paper on Proposed Guidelines on Third-Party Risk Management (“Consultation Paper”). As third-party arrangements introduce risk to financial institutions (“FI”), MAS has proposed to introduce a new set of Guidelines on Third-Party Risk Management (the “Guidelines”). The Guidelines are intended to supersede the Guidelines on Outsourcing (Banks) and Guidelines on Outsourcing (Financial Institutions other than Banks) (collectively, the “Outsourcing Guidelines”). The Guidelines build on MAS’ existing expectations and requirements on outsourcing and incorporate key elements of guidance by international standard setting bodies such as the Financial Stability Board (“FSB”) and Basel Committee on Banking Supervision (“BCBS”).
In this article, Director Ian Phung and Associate Justin Hoo explore the implications of the proposed Guidelines for FIs and their third-party arrangements. Businesses may wish to consider reviewing their compliance practices to align with MAS’ expectations under the proposed Guidelines.
