Thematic Approach to Market Conduct Supervision
In addition to routine company inspections, MAS conducted a series
of thematic inspections to assess the controls and compliance
arrangements of capital markets services (CMS) licensees and how
well they address the specific risks involved.
In 2007, MAS inspected six CMS licence holders active in marketing
contracts for differences to assess their risk management and internal
controls for this product class.
MAS also inspected 16 CMS licence holders to assess the effectiveness
of their compliance functions. In addition, we carried out onsite
inspections on the adequacy of the system and security controls for
the internet-trading systems and activities of 11 CMS licensees.
Following the promulgation of the Trust Companies Act in February
2006, MAS commenced a thematic inspection of six licensed trust
companies between 2007 and 1Q 2008 to assess their compliance
with the Notice to Trust Companies on Prevention of Money Laundering
and Countering the Financing of Terrorism.
Given the increased focus on the global hedge fund industry, MAS
continued to engage hedge fund managers in 2007 to gain a better
understanding of their trading strategies, internal controls and
management oversight. MAS will continue to monitor international
developments in the industry and keep our regulatory approach under
active review as the industry in Singapore grows and evolves.
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