•  We will make regulation modular and activity-based, so that firms need to meet only those regulations pertinent to the specific payment activities they undertake, rather than the full gamut of payments regulations. What will this new framework mean? •  Providers of payment services will require only one licence to conduct multiple payment activities. •  Users of payment services – consumers or businesses – can take more comfort that their financial information is safe from the threat of cyber-attacks and theft. Inclusive governance – a payments council Second key strategy: we will put in place an inclusive governance framework that brings together different stakeholders to guide the development of Singapore’s payments landscape in a coherent way. Specifically, MAS is considering the formation of a broad-based Payments Council that will include senior representation from both providers and users of payments systems. The Council will help to align payment initiatives with national strategies and public interest. Specifically, this means to: •  develop common payments infrastructure;  •  promote open access and inter-operability in payments solutions;  •  enhance the quality of payments systems through the adoption of relevant standards and best practices; and  •  make electronic payments accessible to all. MAS will put out next week for public consultation, proposals for updating our payments regulatory framework and forming a Payments Council. Inter-operable infrastructure The third strategy for an e-payments society is a payment infrastructure that is interoperable, that will enable swift, simple, and secure electronic payments for everyone.

Under the Risk Based Supervisory Framework, corporate governance and risk management has always been an integral part of Bank Negara’s supervisory assessment of insurance institutions. To form a supervisory view of an institution, Bank Negara evaluates how an institution manages the inherent risks within its significant areas of activity. The Bank also assesses the quality of the oversight and control functions and tests the resilience of the institutions to different risks under stress conditions. Therefore, it is critical for an insurance company’s internal policies and control mechanisms to be effective in shaping the desired risk profile. This risk profile should commensurate with the level of capital and capabilities of the company. The Bank also initiated, in 2008, the Financial Institutions Directors’ Education (FIDE) program to promote good corporate governance and risk management practices. Feedback  BIS Review 76/2010  3  from the directors who attended the program revealed a deeper appreciation of the importance of sound corporate governance and active engagement of the Board in risk management and strategic issues. We have also observed that the practices of financial institutions in Malaysia showed evidence of strengthened risk governance culture. In particular, we observed higher commitment by Board members, strengthened authority of the Chief Risk Officer (CRO), and more comprehensive oversight of risks. It is important to recognize that risk management should not be a “black-box” discussion that is confined to high level management. Risk management should be an enterprise-wide process involving all levels of business functions.