CONTENTS
HOME
OUR WORK - Managing Risks, Sustaining Growth
A MORE CHALLENGING POLICY ENVIRONMENT
MONETARY POLICY - PROVIDING AN ANCHOR FOR PRICE STABILITY OVER THE MEDIUM-TERM
MANAGING THE CHALLENGES OF INCREASED GLOBAL FINANCIAL UNCERTAINTY
A SOUND AND PROGRESSIVE FINANCIAL CENTRE
CURRENCY
 
A SOUND AND PROGRESSIVE FINANCIAL CENTRE 28
 
Banking 28
 
Lower Paid-up Capital for Incorporated Wholesale Banks 28
 
Changes to Minimum Liquid Assets and Minimum Cash Balance Requirements (Amendments to MAS Notice 613) 29
 
Developments in Islamic Finance 29
 
Box Story 3 - Basel II Implementation in Singapore 30
 
Insurance 30
 
Enhanced Governance and Disclosure Framework for Participating Insurance Business (MAS 320) 30
 
Revision to Rules for Investment-Linked Products (MAS 307) 31
 
Follow Up on Framework for Insurance-Linked Securities 31
 
Capital Markets 31
 
A More Globalised and Sophisticated Equity Market 31
 
Size of Debt Market 32
 
Assets Under Management 32
 
Strong Treasury Market 33
 
Proposed Legislative Amendments to Securities and Futures Act and Financial Advisers Act 33
 
Amendments to the Singapore Code on Take-overs and Mergers 34
 
Box Story 4 - Guidelines on Fair Dealing -Board and Senior Management Responsibility for Delivering Fair Dealing Outcomes to Consumers 35
 
Thematic Approach to Market Conduct Supervision 35
 
Enhancing Market Discipline 36
 
Box Story 5 - Singapore: The Premier International Real Estate Financing Centre 36
 
REITS 37
 
Revised Property Fund Guidelines 37
 
Licensing Framework for REIT Managers 37
 
Extension of the Singapore Code on Take-overs and Mergers to REITs 37
 
Regulatory Oversight of Commodity Futures 38
 

Proposed Legislative Amendments to Securities and Futures Act and Financial Advisers Act

The MAS will be proposing amendments to the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA) in 2008. The amendments aim to facilitate new business activities and products in response to market needs and refine MAS' supervisory and licensing framework. They also aim to enhance the market misconduct enforcement framework and fine-tune the legislation to achieve greater clarity, consistency and operational efficiency. Policy and legislative consultation on the proposed amendments to the Acts has already been conducted.

Key proposed amendments to the SFA which were publicly consulted on cover five broad areas: (i) capital markets licensing and business conduct; (ii) market misconduct enforcement; (iii) disclosure of interests and offers of investments; (iv) markets and clearing facilities; and (v) regulatory flexibility for market innovation. The proposed FAA amendments are similar to those for the SFA in relation to licensing and business conduct, including the introduction of (i) the Representative Notification Framework and System that will replace the licensing regime for representatives, and (ii) perpetual licensing for corporate licence holders. The other major amendments are to be effected in the SFA.

The other major amendments proposed are in relation to the SFA. They include amendments to impose liability on companies for market misconduct by their employees in certain circumstances, and to empower the courts to order the disgorgement of benefits. MAS also proposes to rationalise the requirements for notification of shareholdings by substantial shareholders and directors of listed companies which currently reside in both the Companies Act and the SFA.

In response to industry feedback and to facilitate the development of the capital markets, it is proposed that the minimum investment threshold required for an offer to be exempted from prospectus requirements be lowered from $200,000 to $100,000. Other amendments related to MAS' emergency powers and the definitions of "securities" and "futures contract" in the SFA and the FAA to enable MAS to react more efficiently to market developments.

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