ANNUAL REPORT 2002 / 2003


Upholding Professional and Ethical Standards

With the licensing of financial advisers underway, MAS will focus on ensuring that financial advisers and insurance brokers conduct their business in a fair, professional and ethical manner. Policies will be refined in consultation with industry. Company visits and inspections will be made to determine licensees’ compliance with business conduct rules and enforcement action will be taken against those who break these rules.

The guidelines on Standards of Conduct for Financial Advisers and Insurance Brokers issued last year set out the general standards expected of financial advisers, insurance brokers and their representatives in conducting financial advisory and insurance broking activities.

Direct general insurance brokers have adopted the General Insurance Code of Practice and the Guidelines on Training and Competency Requirement and Continuous Professional Development, which were jointly developed by the General Insurance Association of Singapore (GIA) and the Singapore Insurance Brokers Association, with effect from 1 January 2003.

The Code of Practice sets out the minimum standards regulating the sale, advisory and service standards of the general insurers, intermediaries (including agents and brokers) and anyone acting for general insurers. The Training & Competency Requirements lay down the minimum insurance qualifications and continuous professional development training requirements for general insurance company staff and intermediaries. Meanwhile, in February 2003 GIA and LIA set up IDRO to provide a one-stop service centre for insurance-related enquiries and complaints.

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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