Annual Report 2001/2002

Supervisory Initiatives

Following SGX’s demutualisation and conversion to a commercial entity, the operating and risk profile of SGX has changed. In response to this, MAS as the regulator of SGX, has enhanced its supervisory regime for SGX.

The groundwork has been laid to build a more pro-active, systematic and integrated supervisory approach. Going forward, a co-ordinated SGX supervisory programme will seek to ensure that there are no gaps or duplication of efforts in the oversight of SGX, regulation of market activities and supervision of licensees. MAS will continue to work closely with SGX on the supervision of its members, with SGX remaining a frontline regulator. A detailed supervisory plan for SGX, which includes the inspection of SGX’s key operating departments on a regular cycle, was completed in early 2002.

IT Supervision Framework for SGX
Due to the extensive use of IT in SGX, MAS is also formalising an IT supervision framework to address the technology risks specific to the securities industry.

Furthermore, MAS will provide technical assistance to SGX in enhancing its IT inspection capabilities for the purpose of monitoring the IT operations of its members.

As part of its ongoing anti-money laundering efforts, MAS continues to rigorously supervise financial institutions for compliance with MAS’ Guidelines on Prevention of Money Laundering. In response to September 11, additional inspections targeting terrorism financing were conducted. MAS has also issued directives to financial institutions to detect and freeze any assets they may have in their custody of terrorist entities sanctioned by the United Nations Security Council.

MAS will continue to work with security agencies and international organisations to strengthen its regulatory framework for combating money laundering and terrorism financing in the financial sector.

[The Financial Sector] [Regulatory Initiatives] [Legislative Changes] [Financial Advisers Act] [Risk-Based Regulation] [Supervisory Initiatives] [Depositor Protection] [Corporate Governance and Disclosure] [Developing The Disclosure Regime] [Prudential Guidelines for Financial Institutions] [Improved Conduct Practices]

[Regulatory Initiatives] [Developmental Initiatives] [Market Infrastructure]

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