Letters to CEOs of Financial Institutions
Over the past year, MAS has reiterated to senior management the importance of ensuring proper controls and risk management of their businesses. Letters addressed to the Chief Executive Officers were sent to:
- Capital Markets Services licensees to ensure effective segregation and handling of customers' moneys and assets.
- Financial institutions involved in the sales and distribution of investment products to ensure control procedures are in place to comply with the FAA.
- Capital Markets Services licensees dealing in contracts for differences and leveraged foreign exchange products to ensure proper controls over marketing, disclosure and risk management of such products.
Financial institutions were required to report to MAS the results of their review and the measures they would take to address any identified shortcomings.
MAS also shared key findings and recommendations from inspections with the relevant financial institutions.These related to recommendations on good practices arising from the thematic inspection of hedge fund managers in July 2008, and the thematic inspection of licensed trust companies on anti-money laundering and countering the financing of terrorism in December 2008. MAS expects the board and senior management of financial institutions to take into account the recommendations and industry best practices in their ongoing review and implementation of policies, processes and controls for their businesses.