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OUR MISSION
OUR OBJECTIVES
 
Supervision
Inspections and
Supervisory Reviews
New Legislation
Enhancing Regulatory Frameworks
Market and Business Conduct
Risk Management
B THE FINANCIAL SECTOR: KEY SUPERVISORY
AND REGULATORY INITIATIVES
 
  Inspections and Supervisory Reviews 32
 
BASEL II Implementation  
32
 
Box 1 – BASEL II Implementation in Singapore  
33
 
Thematic Inspections Relating to Anti-Money
 
Laundering/Countering Financing of Terrorism
34
 
Thematic Inspections on Asset-Liability
 
and Capital Management for Life Insurers
35
 
Box 2 – Monitoring Hedge Funds in Singapore  
36
 
Thematic Inspections of Corporate Finance Advisers  
37
 
Thematic Inspections on E-trading of Futures Contracts  
37
 
Inspections of Fund Management Companies  
37
 
Box 3 – Developing and Enforcing Supervisory
 
Regimes for Real Estate Investment Trust  
38
 
Box 4 – Thematic Supervisory Work on Financial Advisers  
39
 
  INSPECTIONS AND SUPERVISORY REVIEWS

Box 3 Developing and Enforcing Supervisory Regimes
for Real Estate Investment Trust
 

The Singapore real estate investment trusts (REITs) market has grown significantly since the first REIT was listed on the SGX in July 2002. There are now ten listed REITs with an aggregate market capitalisation of about S$13 billion as at 31 May 2006. These REITs provide investors with exposure to income streams from shopping malls, office buildings, industrial properties and serviced residences located in Singapore, Hong Kong, Australia and other Asia Pacific countries.

MAS strengthened the Property Fund Guidelines in October 2005 with the aim of creating a robust regulatory regime for REITs that will safeguard investors’ interests while providing adequate flexibility to facilitate commercial transactions, and support the long term development of our REITs market. Key changes include new disclosure requirements for REITs and requirements relating to interested party transactions. To accommodate domestic and overseas expansion, the revised guidelines give REITs more flexibility in the management of their capital structure and also facilitate the partial ownership of properties by REITs. The additional flexibility given is subject to safeguards to protect the interests of REIT unitholders.

We also strengthened the admission criteria for REIT managers in the revised guidelines. REIT managers now have to meet minimum financial requirements and must have a physical presence in Singapore. They also need to have a designated CEO and at least two professional staff. Their directors, CEO and professional staff must satisfy MAS’ Guidelines on Fit and Proper Criteria. MAS will be introducing legislative amendments to license and regulate REIT managers and the management of REITs under the Securities and Futures Act/Securities and Futures Regulations.