ANNUAL REPORT 2002 / 2003


CALENDAR OF MONETARY AND FINANCIAL EVENTS

 
01.04.2002
The Board of Commissioners of Currency, Singapore (BCCS) stops the issue of 1-cent coins to help the business sector reduce costs in handling low denomination currency. The 1-cent coin remains as legal tender. BCCS was later merged with Monetary Authority of Singapore (MAS) on 1 October 2002.
 
08.04.2002
The Singapore Exchange (SGX) extends the securities borrowing period on its Securities Lending programme by allowing successive rollovers.
 
10.04.2002
ABN Amro joins as a Singapore Government Securities (SGS) Primary Dealer, bringing the total number of Primary Dealers to 11.
 
Singapore’s first local Exchange Traded Fund, the streetTRACKS Straits Times Index Fund, lists on the SGX.
 
18.04.2002
Full-sized Japanese Government Bond futures and options begin trading on the SGX.
 
24.04.2002
SGX raises the threshold for mandatory quarterly reporting for listed companies to S$75.0 million.
 
MAS announces that it has adopted the International Monetary Fund (IMF) and World Bank’s financial sector assessment programme in a move towards international best practice.
 
03.05.2002
The Government announces the Budget for Financial Year 2002/2003. The Budget includes tax incentives for financial sector activities.
 
15.05.2002
SGX launches the MSCI Japan Index futures contract.
 
25.06.2002
MAS announces the proposed introduction of a deposit insurance scheme. The primary objectives of the proposed scheme are to provide protection to small depositors and to dispel public perception of a government guarantee on deposits.

The Association of Banks in Singapore (ABS) unveils its Code of Consumer Banking Practice. MAS discloses full details of how the licensing regime under the Financial Advisers Act (FAA) will work.

01.07.2002
Part XIII of the Securities and Futures Act (SFA) on Offers of Shares, Debentures and Collective Investment Schemes (CIS) comes into effect. MAS takes over from the Registry of Companies and Businesses as the prospectus registration and CIS authorisation authority.

SGX launches its new market data feed system or SGX Securities Book. SGX issues new Listing Manual.

Parliament passes a Bill to amend the Companies Act to implement recommendations of a private-sector committee, the Disclosure and Accounting Standards Committee, assigned to help Singapore bring its disclosure standards and corporate governance practices to world-class levels.  
 
11.07.2002
MAS issues a Monetary Policy Statement, maintaining its neutral policy stance of a 0% appreciation in the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) for the second half of 2002.  

MAS revamps the capital requirements for stockbrokers in line with its emphasis on a risk-based regulatory framework.  
 
18.07.2002
MAS releases the Macroeconomic Review, July 2002.
 
22.07.2002
Parliament announces that the government changes the property financing rules to give banks first claim to a mortgaged property – ahead of the Central Provident Fund (CPF) Board in the event of borrower default.  
 
23.07.2002
Parliament passes a Bill to amend the Currency Act to provide for the dissolution of BCCS and to make explicit the definition of legal tender. Parliament passes a Bill to amend the Bills of Exchange Act for the purpose of establishing a Cheque Truncation System. 

07.08.2002
The Securities Industry Council issues guidelines for assessing the independence of independent financial advisers in a company takeover.

08.08.2002
MAS issues transitional regulations under the SFA and FAA.
 
15.08.2002
Another six single-stock futures contracts begin trading on the SGX. The Board of Governors of the World Bank and the IMF, comprising Finance Ministers and central bank Governors of 184 member countries, endorses Singapore’s offer to host the prestigious 2006 Annual Meetings.
 
21.08.2002
MAS issues a consultation paper on proposed legislation to protect payment and settlement systems.  
 
30.08.2002
MAS issues a consultation paper on its proposal to implement a regulatory framework for health insurance business.  
 
01.09.2002
MAS reduces the minimum cash downpayment required for the purchase of residential property from 20.0% to 10.0% of the property value. While the maximum amount of financing that can be extended by financial institutions remains at 80.0%, purchasers can now use CPF savings to finance an additional 10.0% of the property value.
 
04.09.2002
MAS hosts the 2002 IMF Article IV Consultation to discuss Singapore’s economic developments and policies.
 
09.09.2002
MAS allows the submission of non-competitive bids at Treasury bill auctions, instead of just at SGS bond auctions as was the case previously. This will facilitate the participation of small investors at SGS primary auctions.
 
11.09.2002
MAS issues Securities and Futures Regulations for Markets and Clearing Facilities, and Guidelines on the Regulation of Markets.
 
17.09.2002
MAS releases revised internet banking guidelines.
 
18.09.2002
The Financial Services Working Group, part of the Economic Review Committee (ERC) Sub-Committee on Service Industries, unveils its recommendations on financial services.
 
20.09.2002
The Bills of Exchange (Amendment) Act 2002 and the Bills of Exchange (Cheque Truncation) Regulations 2002 take effect.

01.10.2002
BCCS merges with MAS.

The SFA and FAA come into effect.

Public Accountants Board issues a set of rules on auditor independence as part of moves to improve corporate governance. MAS unveils new rules to curb terrorist financing.

30.10.2002
MAS issues proposed guidelines on sound risk management practices.

11.11.2002
MAS issues proposed guidelines on technology risk management practices for all financial institutions.

MAS issues notices on the prevention of money laundering to Capital Markets Services licensees and Financial Advisers

12.11.2002
SGX launches a Middle East crude oil futures contract in co-operation with the Tokyo Commodity Exchange.

15.11.2002
Singapore launches the Credit Bureau (Singapore) Pte Ltd.

25.11.2002
Parliament passes the Payment and Settlement Systems (Finality and Netting) Bill.

05.12.2002
MAS issues revised guidelines for retail hedge funds.

09.12.2002
The Payment and Settlement Systems (Finality and Netting) Act takes effect.  

11.12.2002
MAS removes the 20.0% aggregate foreign shareholding limit on finance companies.

16.12.2002
MAS invites applications for the remaining 7 Wholesale Bank Licences.

20.12.2002
MAS issues a consultation paper on risk-based capital framework for general insurers.

01.01.2003
Quarterly reporting by Singapore-listed companies takes effect.

SGX revises rules on the listing of structured warrants.

02.01.2003
MAS issues a Monetary Policy Statement, maintaining the neutral policy stance of a 0% appreciation for the S$NEER policy path.

ABS launches the Consumer Mediation Unit as an affordable, independent mediation mechanism to strengthen the protection to consumers against unfair practices by banks.

07.01.2003
IMF releases Public Information Notice on the conclusion of the 2002 IMF Article IV Consultation with Singapore.

09.01.2003
MAS releases the Macroeconomic Review, January 2003.

10.01.2003
MAS issues a consultation paper on proposed Business Continuity Management guidelines.
 
15.01.2003
SGX launches open-dated securities lending.
 
22.01.2003
MAS lifts its 1995 car loan guidelines which restricted the maximum financing for the purchase of a car to 70.0% of its purchase price, including the price of its Certificate of Entitlement, to be repaid over a period of not more than 7 years.
 
SGX separates the membership categories for securities trading and clearing on its Exchange.
 
29.01.2003
The Terrorism (Suppression of Financing) Act takes effect.
 
24.02.2003
MAS issues a consultation paper on proposed guidelines and regulations to enhance the existing corporate governance framework for locally incorporated banks and direct insurers.
 
27.02.2003
The General Insurance Association of Singapore and the Life Insurance Association of Singapore launch the Insurance Disputes Resolution Organisation as an independent channel for resolving disputes between the insured and insurers.
 
28.02.2003
The Government announces the Budget for Financial Year 2003/2004, and accepts the ERC recommendations. The Budget includes tax incentives for financial sector activities.
 
20.03.2003
MAS issues consultation papers on:
 
1) A proposal to issue temporary representative’s licence to individuals residing outside Singapore.
2) Proposals relating to the approval of arrangements between foreign companies and locally regulated affiliates under the SFA and FAA.

28.03.2003
MAS revises Property Fund Guidelines to raise the borrowing limit from 25.0% to 35.0%.
 
31.03.2003
SGX and the Australian Stock Exchange (ASX) double the number of stocks available for co-trading through their co-trading linkage to 100 SGX-listed stocks and 100 ASX-listed stocks.
 
01.04.2003
MAS introduces a uniform price auction format for SGS bond auctions.
 
14.04.2003
SGX institutes a Unit Share Trading system to replace the odd-lot market for securities trading.
 
16.04.2003
MAS issues a consultation paper on the proposed Payment Systems Oversight Act.
 
23.04.2003
MAS issues consultation papers on amendments to the SFA and FAA.
 
24.04.2003
MAS and SGX announce that MAS will take over the primary responsibility for on-site inspection of brokers from 1 July 2003.
 
SGX raises the threshold for mandatory quarterly reporting for listed companies to S$75.0 million.

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