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       Enhancing Regulations for Investment-linked Polices and Unit Trusts To enhance regulatory standards and further align the requirements between investmentlinked policies (ILPs) and unit trusts, a consultation paper was issued in January 2004. The new regime looked at standardising disclosure requirements, investment guidelines, operational requirements, minimum death benefit and the length of the free-look period. Sales illustrations, business conduct requirements for ILP sub-fund managers, and the structure and governance of ILPs were also reviewed. The new legislation will lead to better disclosure for policyholders, and will offer them better protection. It will also minimise regulatory arbitrage between ILPs and unit trusts.