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Source:
www.mas.gov.sg |
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Second Reading Speech By Tharman
Shanmugaratnam, Minister For Education and Deputy Chairman, Monetary
Authority of Singapore |
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Mr Speaker Sir, on behalf of the Senior Minister,
I beg to move, "That the Bill be now read a second time". |
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The Securities and Futures Act (SFA) was enacted
in October 2001. It sought to provide a legislative framework for a market and
disclosure-based approach to regulating our capital markets. |
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It also provided a single comprehensive rulebook,
reflecting trends towards industry consolidation and the blurring of
boundaries between capital market products, for example between unit trusts,
investment-linked insurance policies and structured products. |
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When the SFA was passed, we noted that the
Monetary Authority of Singapore (MAS) would review the Act in the following
few years to keep pace with developments in the capital markets. MAS embarked
on a two-phase set of amendment to the SFA in 2003. |
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The Securities and Futures (Amendment) Act 2003,
which marked the first phase of amendments, implemented 12 recommendations of
the industry-led Company Legislation and Regulatory Framework Committee (CLRFC). |
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The CLRFC had been tasked to review and modernise
the company law and regulatory framework in Singapore. It suggested
rationalising some of the rules in the SFA for offers of investments to make
our capital markets more globally competitive. |
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The first round of amendments also incorporated
various technical amendments, in light of industry developments and feedback
received since the implementation of the SFA in 2001. |
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The second phase of amendments, represented by the
current Bill, implements the remaining recommendations of the CLRFC. We are
also making other substantive policy changes to the SFA. |
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MAS invited feedback from the industry and the
public on the proposed policy refinements in September 2003, and on the draft
Bill in April 2004. |
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Many respondents gave detailed comments. MAS has
incorporated the feedback received into the Bill, where practicable and where
it is in line with its regulatory objectives. MAS has posted detailed
responses to the comments received during these consultations on its website. |
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Sir, let me first set out the basic thinking
behind the amendments. The Bill aims to strengthen the foundations
underpinning our market and disclosure-based regulatory regime. It aims at
sound standards without excessive costs. |
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First, we seek to ensure high standards of
transparency and fair dealing. These standards are prerequisites for the
continued growth and development of the markets. |
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While they impose obligations on issuers of
capital, market intermediaries and professionals, they ultimately benefit all
participants in the capital markets. They enhance investor confidence, leading
to more liquid and vibrant markets, which in turn lowers the cost of capital. |
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A market-driven, disclosure-based approach also
allows reputable market players to raise the bar over time, as they see
competitive advantage in improving their standards of disclosure and fair
dealing above the minimum standards prescribed. |
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The second objective of the Bill is to make our
rules as clear and market-friendly as possible to support the development of
our markets. The Bill provides greater regulatory certainty to the industry in
some key areas such as offers of investments. The approval process and ongoing
requirements for markets and clearing facilities have also been further
streamlined for new entrants. |
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The Bill introduces amendments to rules across a
range of capital market activities - capital raising, the conduct of
intermediaries, and the provision of clearing and settlement infrastructures. |
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On capital-raising, the amendments redefine the
scope of provisions concerning investment offers, refine the liabilities of
professionals involved in capital raising and simplify some prospectus rules.
The Bill fine-tunes the regulation of intermediaries in light of industry
experience to date under the SFA. |
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On markets and clearing facilities, the Bill
calibrates the level of regulation to better match the different levels of
systemic risk posed by different entities. |
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More..... |
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Source:
Monetary Authority of Singapore Press
Release 25 Jan 2005 |
FrontPage Edition: Fri 11 February 2005
All rights reserved
