THE FINANCIAL SECTOR:
KEY SUPERVISORY AND REGULATORY INITIATIVES
     
Content Page
Supervision
Regulation
Risk-based Regulatory Regime
Fine-Tuning Regulatory framework
Ensuring Sound Market Conduct
Innovative Systems for Efficient Payment
and Settlement
 
 
FINE-TUNING REGULATORY FRAMEWORK
 
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Enhancing Regulations for Investment-linked Policies and Unit Trusts . Consolidating Rules on Credit and Charge Cards
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Risk Management Guidelines . Win-win Partnership with Industry
. Divesting Non-financial Businesses
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Revised Regulations on Credit Files, Grading and Provisioning    
 
Enhancing Regulations for Investment-linked Polices and Unit Trusts
To enhance regulatory standards and further align the requirements between investmentlinked policies (ILPs) and unit trusts, a consultation paper was issued in January 2004. The new regime looked at standardising disclosure requirements, investment guidelines, operational requirements, minimum death benefit and the length of the free-look period. Sales illustrations, business conduct requirements for ILP sub-fund managers, and the structure and governance of ILPs were also reviewed. The new legislation will lead to better disclosure for policyholders, and will offer them better protection. It will also minimise regulatory arbitrage between ILPs and unit trusts.