THE FINANCIAL SECTOR: KEY SUPERVISORY AND REGULATORY INITIATIVES       Content Page Supervision Regulation Risk-based Regulatory Regime Fine-Tuning Regulatory framework Ensuring Sound Market Conduct Innovative Systems for Efficient Payment and Settlement     FINE-TUNING REGULATORY FRAMEWORK   . Amending the SFA and FAA . Enhancing Regulations for Investment-linked Policies and Unit Trusts . Consolidating Rules on Credit and Charge Cards . Box 5 – Deposit Insurance Scheme . Risk Management Guidelines . Win-win Partnership with Industry . Divesting Non-financial Businesses . Revised Regulations on Credit Files, Grading and Provisioning       Divesting Non-financial Businesses   In August 2003, MAS announced that we would extend the grace period for Singaporeincorporated banks to divest their non-financial businesses by two years to July 2006 upon the banks’ application. This was in view of the economic and market conditions over the past two years which had been more difficult than anticipated. In October 2003, we completed a public consultation on proposed rules restricting cyclical shareholding arrangements within the banking group. We issued regulations in May 2004 to set out the implementation details of the policy to separate financial and nonfinancial business of a bank, and to unwind cross-shareholdings within the local banking groups. We will continue to engage in dialogue with the banks on their restructuring and divestment plans.