ANNUAL REPORT 2002 / 2003
FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES
STRONG PILLARS FOR GOOD CORPORATE GOVERNANCE
standards of corporate governance are needed in the financial sector to foster a
stronger risk management culture, better internal controls, and greater
initiatives taken last year to improve corporate governance included:
for all listed companies to comply with the Code of Corporate Governance for
financial years beginning on or after 1 January 2003.
and implementation of corporate law reforms to support new business
structures and models.
enhanced corporate governance standards for MAS-regulated financial
in August 2002, the CCDG comprises members from businesses, professional
organisations, academic institutions and the government. Its primary role is to:
accounting standards in Singapore in consultation with the Institute of
Certified Public Accountants of Singapore.
the framework of disclosure practices and reporting standards, taking into
account trends in corporate regulatory issues and international best
and enhance the framework on corporate governance and promote good corporate
governance in Singapore, taking into account international best practice.
of the Councilís recommendations was quarterly reporting, which is now
required of listed companies with market capitalisation of S$75.0 million or
more. Smaller companies have been exempted until 2005 when a review will be
International Accounting Standards were reviewed to make sure they were
applicable in Singapore. Most were adopted as the Financial Reporting Standards
(Singapore), and Singapore-incorporated companies had to comply with these
starting 1 January 2003.
Code of Corporate Governance took effect on 1 January 2003. The Singapore
Exchange (SGX) Listing Manual requires all listed companies to disclose in their
annual reports, their corporate governance practices with reference to the Code.
provisions of the Code are not mandatory. Deviations from the Code have to be
disclosed by companies. The emphasis is on compliance with the spirit rather
than the form of the Code.
Company Legislation and Regulatory Framework Committee issued its final report
in October 2002 with these key recommendations:
the formation of Limited Partnership and Limited Liability Partnership
dormant companies and private companies with annual turnover below S$5.0
million from statutory audit.
laws on corporate
fund-raising and capital maintenance, for example, abolish par value for
shares, and allow repurchased shares to be held in treasury.
in law the general principles of directorsí duties.
The Government has accepted all the Committees recommendations, and MAS is implementing those recommendations relevant to the Securities and Futures Act (SFA).
|Risk-Based Regulatory Regime||Prudential Policies||Enhancing MAS' Supervisory Role||Greater Consistency in Standards Across Sectors|
|Building Strong Pillars for Good Corporate Governance||Additional Requirements||Building Confidence with Sound Market and Business Conduct|
|Upholding Professional and Ethical Standards||Laying Strong Foundation for Financial Innovation||Managing Technology Risks|
|Improved Securities Trading and Clearing System||Safer Settlement System for Foreign Exchange||Payment Systems|
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