Auditors have an important responsibility to perform checks on financial statements and provide assurance that these are reliable. Lawyers and consultants provide advice to help issuers ensure that their business dealings and corporate actions comply with laws and rules. Other professionals such as academia and financial journalists can also play a constructive role when they query or opine on matters relating to a listed company’s financial statements, strategy or governance. 22 So it is an ecosystem of many different stakeholders. There are other official agencies involved too. The Accounting and Corporate Regulatory Authority (ACRA) regulates financial reporting, audits and auditors. ACRA has in place a Financial Reporting Surveillance Programme where it reviews financial statements to ascertain compliance with accounting standards, as well as the Practice Monitoring Programme where it inspects the public accountants for the quality of their audit work. 23 There is also the Commercial Affairs Department (CAD) of the Singapore Police Force. CAD is Singapore’s principal white-collar crime investigation agency. Under the MAS-CAD joint investigation arrangement, MAS and CAD will jointly investigate offences to bring the full weight of our law against violations and abuses in our financial system. 24 While each regulatory or investigation agency has its distinct role, there is a shared responsibility in ensuring that the market is well-regulated, that corporate malfeasance is thoroughly investigated and that appropriate actions are taken against wrongdoers. 25 Some have asked why investigations into potential wrongdoings can take a long time. Let me explain.

We will carry out more thematic reviews of financial advisory firms’ consequence management frameworks to assure us that investor complaints are investigated in a fair and timely manner. 13 The reality of course, is that no amount of regulations nor supervision can prevent wrongdoings. To try to do so would require a large volume of pre-emptive rules as well as unlimited supervisory resources. Both situations are neither possible nor desirable. 14 This is why MAS also places importance on our enforcement actions. We will not hesitate to investigate and take errant financial institutions or their representatives to task for breaches of our law and regulations. We have issued prohibition orders against individuals for a range of misconduct, from mis-selling to dishonesty and fraud. Our message is clear— improper or illegal conduct have no place in our financial sector. Importance of market discipline 15 This brings me to the second topic. Market discipline. 16 As with our enforcement actions, market discipline can play an important role in shaping behaviour. It creates a strong incentive for financial institutions to conduct their business in a fair, transparent and responsive manner. A firm or its representatives with a poor record will deter prospective clients and investors. Similarly, investors will avoid companies that have poor standards of governance and disclosures. In other words, investors will penalise those that have fallen short, and reward those that have fared well. 17 To allow market discipline to work, different participants in the eco-system must play their part.