We need qualified professionals to fill not just front office jobs like relationship management and investment advice but also mid to back office functions in risk management and compliance. There are two reasons why we cannot be complacent. One, the markets have changed. Average investment returns are likely to be lower over the next decade than they were in the last, as the developed economies deleverage and global demand rebalances. The wealth manager can no longer sit back and let a buoyant market do the job. He needs to chart clear strategies and manage his clients’ portfolios amidst a more uncertain and volatile environment. Two, the clientele has changed. Post-Lehman, the client is more cautious and less trusting. He wants better service and clearer value. Asian clients with different backgrounds and needs will demand more tailored solutions. The wealth manager must be well-attuned to their social, cultural, and generational considerations, and be able to provide advice on not just wealth accumulation and preservation, but also wealth transfer across generations. MAS is committed to working with the industry to help expand the talent pool and to enhance capabilities and skills in the industry. The Financial Industry Competency Standards, or FICS, is a good example. Supported by MAS, but developed by the industry, and for the industry, FICS provides a practice-oriented approach for finance professionals to attain the competencies they need to do their jobs well.

Given the cross-border nature of illicit financial activities, it is not enough that we have strong regulation and supervision in  BIS central bankers’ speeches  5  Singapore; we must be able to co-operate effectively with supervisory authorities and enforcement agencies abroad. Singapore contributes actively to the work of the FATF, the Global Forum on Transparency and Exchange of Information for Tax Purposes, and the AML/CFT Expert Group under the Basel Committee, to shape well-balanced international standards that are effective and proportionate. MAS co-operates with our international counterparts, through sharing inspection reports, participating in supervisory colleges, and facilitating home regulator visits. We also co-operate with home supervisors to enhance AML/CFT controls and standards not only at the branch but at the group level for financial institutions operating across borders. Internationally, the new emphasis is on co-operation in pursuing cross-border tax offences. Singapore has endorsed the internationally-agreed standard, known as Article 26 of the OECD Model Tax Convention on Income and Capital, for the exchange of information upon request, and is committed to supporting the effective implementation of this global standard. Singapore amended legislation in 2009 to lend effect to its obligations and has since signed 30 Avoidance of Double Taxation Agreements incorporating the new standard. This ensures that we are able to assist in foreign requests for information on a person’s tax position, so long as the request is clear, specific, relevant and backed with good reason. Some people think that Singapore’s banking confidentiality regime fetters such international cooperation.