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       Risk Management Guidelines   Following consultation with industry, MAS is reviewing the proposed guidelines on Sound Risk Management Practices and incorporating industry feedback, where appropriate. The final guidelines are expected be issued in the third quarter of 2004. In addition, we released a consultation paper on outsourcing guidelines in April 2004, setting out our expectations for financial institutions who entered into outsourcing arrangements with service providers. Based on international good practice, the guidelines focus on material outsourcing. They make clear that we expect financial institutions to establish risk management practices commensurate with their risk appetites. The guidelines complement the Internet Banking Technology Risk Management guidelines, released in June 2003, which address outsourcing of IT processing functions and operations.