Chitchat SGX - Yet another case of conflict of interest leading to regulatory failur

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An honorable member of the Coffee Shop Has Just Posted the Following:

When you let the PM's wife run Temasek, the core risk principles of separation of duties and avoidance of conflict of interest went out thru the window. Its became the new baseline and it led to deterioration of so many govt entities.


http://www.channelnewsasia.com/news/...965076.htmlSGX to transfer regulation functions to new subsidiary
Posted 18 Jul 2016 12:20 Updated 18 Jul 2016 22:47

SINGAPORE: The Singapore Exchange (SGX) on Monday (Jul 18) announced it would be transferring its front-line regulatory functions to a separate subsidiary company with a separate board of directors.

The move aims to further enhance the governance of SGX as a self-regulatory organisation (SRO) by making more explicit the segregation of its regulatory functions from its commercial and operating activities, the exchange said in its press release.

SGX said it expects to set up the subsidiary by the second half of next year.

The chairman of the new subsidiary company and a majority of its directors will be independent of SGX and its subsidiaries, including SGX-Securities Trading and SGX-Derivatives Clearing, it said.

The establishment of the new company will not add to the requirements of the current public offering listing process. This is consistent with ongoing efforts to rationalise regulatory functions performed by the Monetary Authority of Singapore (MAS) and SGX, it added.

"IMPORTANT STEP" TO STRENGTHEN SAFEGUARDS: MAS

In a press release on the same day, MAS said the move is an "important step" in strengthening the safeguards to manage potential conflicts of interest between SGX's commercial and regulatory roles.

The setting up of a separate subsidiary company to perform regulatory functions, together with the establishment of the independent Listings Committees in October 2015, will further strengthen SGX’s role as a SRO, it added.

"The independence of the subsidiary company from SGX will be an important factor for its success," said MAS, adding that it will continue to directly regulate SGX in terms of its obligations as a listed company and market operator.


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