ANNUAL REPORT 2002 / 2003


THE FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES

BUILDING CONFIDENCE WITH SOUND MARKET AND BUSINESS CONDUCT

MAS created the Market and Business Conduct Department in September 2002. Its role is to formulate and implement sound and progressive market and business conduct policies across financial sectors in the interests of consumers, investors and policy-holders. The aim is to promote innovation and confidence in financial markets, and high standards of market conduct by financial market players.

An important step last year was the full implementation of the SFA and Financial Advisers Act (FAA) in October 2002. These Acts provide the framework for a disclosure-based regime which maintains fair and efficient capital markets and sets high standards of professional conduct so as to help investors make well-informed decisions.

Since the implementation of the FAA, local and foreign companies have expressed interest in setting up operations in Singapore. New business models have also taken shape. Some financial advisers are moving towards fee-based services, though most still rely on commissions to generate income.

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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