MAS: Annual report 2006 / 2007
CONTENTS
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ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE 25
Changes to Capital Requirements for Singapore-incorporated Banks 25
Enhancing MAS’ Role in Bank Resolution 25
Changes to Rules on Unsecured Credit 25
Shift Towards Large Exposures Regime 26
Introduction of Asset Maintenance for Foreign Banks 26
Box 3 - An Update On Basel II Implementation In Singapore 26
Legislative Amendments to Securities and Futures Act and Financial Advisers Act 27
Box 4 - Monograph On Supervisory Framework For Financial Institutions 27
Trust Companies 28
Self-assessment Initiative 28
Anti-Money Laundering & Countering the Financing of Terrorism 28
Building Confidence in E-payments and Internet Banking Systems 28
Insurance Securitisation 29
Nomination of Beneficiaries to Insurance Policies 29
Policy Owners’ Protection Fund 29
Box 5 - Supervision Of New Initiatives in the  
  Singapore Capital Markets - Jade And AsiaClear 30
Mortgage Insurance 30
Thematic Approach to Market Conduct Supervision 30
Box 6 - Market Manipulation 31
Mystery Shopping on Practices in the Financial Advisory Industry 31
Review on Switching of Investment Products 31
Enhancing Market Discipline 31
Corporate Governance of Listed Companies 32
Amendment to Code on Collective Investment Schemes 32
Implementation of Payment Systems (Oversight) Act 20 06 32
 
Legislative Amendments to Securities and Futures Act and Financial Advisers Act
In reviewing the legislative amendments to Securities and Futures Act (SFA) and Financial Advisers Act (FAA), MAS released two public consultation papers in September 2006 and December 2006. The first consultation paper contained two key proposals: (i) the introduction of a Representative Notification Framework to replace the current different framework for licensed and exempt representatives, and (ii) the conferment of enhanced powers to MAS for the supervision of markets and clearing facilities in emergencies.

The second consultation paper set out proposed amendments to five broad areas: market and clearing houses; licensing and business conduct rules; fidelity funds of securities and futures exchanges; market misconduct enforcement framework; and regulation of offers on investments.

MAS intends to release a third consultation paper with proposed changes to the SFA and FAA in the following areas: (i) refining our licensing framework for corporate license holders; (ii) enhancing our prohibition order regime to strengthen our supervisory oversight; (iii) refining our regime for providing assistance to foreign regulators; and (iv) providing our capital markets legislative framework with sufficient flexibility to keep pace with innovation.