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       Amending the SFA and FAA   MAS embarked on a two-phased legislative amendment process on the Securities and Futures Act (SFA) and the FAA last year. The first phase of legislative amendments was passed by Parliament in September 2003 and came into force in December 2003. The amendments implemented recommendations made by the Company Legislation and Regulatory Framework Committee. They aimed to reduce the cost of raising capital in Singapore by rationalising and simplifying the requirements in the SFA for offers of investments. They also incorporated technical amendments to the SFA and FAA, taking into account industry developments and feedback since the Acts were enacted in 2001. In September 2003, MAS issued a consultation paper on the key policy reforms that were being considered for the second phase of amendments to the SFA and FAA. The second phase reflected our policy reviews in areas such as offers of investments, markets and clearing houses, and the product scope of the FAA. We published our response to the public comments received in March this year. Apart from regulatory changes proposed under the second phase of amendments, MAS further fine-tuned the regulatory framework of the FAA to adapt to changing market needs. The new measures include: • Revising the minimum education requirements for financial adviser representatives. • Developing the regulatory framework governing execution-related advice. • Developing the regulatory framework for advising on foreign exchange (FX) and leveraged FX trading.