Singapore, 9 Nov 2004...The Monetary Authority of Singapore (MAS) will publish details of market conduct regulatory actions1 where it is in the public interest to do so. This new approach is part of our ongoing enhancements of the supervisory framework and takes effect immediately.
Circumstances in Which Disclosure is Warranted
2 As increasingly recognised in other major jurisdictions, the disclosure of regulatory actions on market conduct issues can be an effective regulatory tool in some circumstances. Publication of our formal market conduct regulatory action taken against an individual financial institution (FI) can enhance market discipline and help MAS to achieve our supervisory objectives.
3 MAS will normally make public our market conduct regulatory actions against individual institutions when we take formal enforcement action2 arising from:
a) significant breaches of the law, regulations or other regulatory requirements in relation to conduct issues;
b) failure to take proper remedial action in response to repeated warnings from MAS about our concerns;
c) our intent to signal to the market that certain conduct is clearly unacceptable and harmful to the reputation of the financial markets; or
d) the need for MAS to safeguard the interests of the customers of an individual FI.
Confidentiality of Dealings
4 However, our current policy of not disclosing our dealings with individual institutions under other circumstances will continue. Most of MAS' dealings with regulated FIs are best dealt with in confidence with the co-operation of the regulated institutions.
Unfair or Prejudicial Disclosures
5 MAS will also not disclose regulatory actions if it is unfair or unduly prejudicial to the subject of the action to do so. MAS will continue not to disclose any confidential and commercially sensitive information obtained during its supervision of FIs in Singapore.
How MAS will publish
6 In publishing details of market conduct regulatory actions, MAS will name the entity, together with a brief description of the regulatory action and the reasons for intervention on the MAS website, in a new section called Enforcement.
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1Generally, market conduct regulatory actions arise from situations where market participants have engaged in market misconduct or have failed to deal with consumers in a fair and transparent manner.2MAS' actions can include a reprimand, issuance of directions to a regulated entity, composition of offences (through payment of a composition amount), referral of the matter to the Commercial Affairs Department for criminal investigations and prosecution, or in serious cases, the revocation of licences.