This will provide more clarity on the respective roles of the various agencies – as well as MAS’ own approach to investigating misconduct. Where laws are broken, the MAS will rigorously investigate a case including with the Commercial Affairs Department (“CAD”), and will not hesitate to charge the perpetrators involved. We also supervise regulated financial institutions on a regular basis and will take enforcement actions against an institution that has fallen short of our regulatory requirements. But enforcement actions cannot operate in isolation. No amount of rules can stop someone who is intent on gaming the system or breaking the law. Our capital market works best in a regime where all stakeholders share some responsibility in holding the line against any mismanagement or misconduct, analogous to community policing. The statutory and market regulators can work closely with the industry, investors, industry associations and other groups to co-create a fair and orderly capital market. This will engender confidence and trust, and allow market discipline to thrive. This brings me to the important role of market discipline. As our capital markets develop, we can and should expect market discipline to increasingly feature. It is the process by which market participants themselves exercise oversight over companies and call out what may be possible transgressions or dubious practices. The fact that we have indeed seen more of such commentaries and reports in recent years need not be interpreted as a sign of weakness but of strength arising from a more mature capital marketplace.

Important baseline market practices that should apply to every firm – or CG “hygiene” requirements – are hardened by their inclusion in the SGX Listing Rules. Indeed, twelve basic requirements previously couched as guidelines have been shifted from the Code to the Listing Rules. In other aspects, the Code has been streamlined and elaborated in the Practice Guidance. In considering what should be mandatory in the SGX Listing Rules, Council members had carefully considered their effectiveness in supporting long-term business goals, and how the revised Code compares against international practices. There may be some concerns that some of the principles in the Code are subject to interpretation and gaming. I can understand such sentiments. This is why the MAS has also accepted the Council’s recommendation to set up a standing Corporate Governance Advisory Committee to monitor CG developments on a regular basis, and you can expect more details on this Committee once it is set up. There are other views calling on regulators to adopt quicker or harsher actions in response to CG violations. Some felt that directors should be held more accountable for their fiduciary duties, or breaches in their fiduciary duties. Investigations are usually complex and time-consuming affairs especially if there are crossborder elements involved. At the same time, it is important that our financial sector operates with a clear rule of law, as well as fair and transparent legal processes. This is to assure a trusted regime for everyone. We must allow for thorough investigations as a matter of legal and investigation integrity.