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     SUPERVISION   . Enhancing Risk-focused Supervisory Approach . Box 1 – Fostering a Sound and Progressive Financial Services Sector . Enhancing MAS’ Supervisory Capabilities . Box 2 – Stress Testing of Life Insurers . Box 3 – Streamlining Inspection Function . Thematic Inspections to Improve Surveillance   Thematic Inspections to Improve Surveillance   Besides institution-specific inspections, MAS conducted a series of thematic inspections to assess specific risks that the financial system faces. With rising defaults on consumer loans, MAS conducted inspections of major retail banks’ unsecured lending to consumers. MAS also began on-site inspections of financial advisers to enforce the standards established under the Financial Advisers Act (FAA) and ensure that consumers benefit from higher quality advice on investment products. In addition, we carried out market-wide inspections of intermediaries undertaking diverse activities. The activities covered exempt fund management, securities research, corporate finance advisory, and Collective Investment Scheme (CIS) managers.