ANNUAL REPORT 2002 / 2003


THE FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES

Additional Requirements

In February 2003, MAS issued a consultation paper on corporate governance guidelines for Singapore-incorporated banks and direct insurers. The guidelines set out the role that should be played by boards of directors and chief executive officers (CEO), and their duties towards shareholders, depositors and policyholders. They were also aimed at strengthening the independence of boards, as well as the independence of nominating, audit and compensation committees. At the same time, specific corporate governance regulations were issued for public consultation. The regulations included rules that require banks to separate their management from those of the affiliates of their substantial shareholders, and for the separation of the Chairman and CEO roles within a bank or an insurance company.

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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