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
 

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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