Regulation

We continue to pursue our core objectives of providing investor protection and preserving market integrity through robust and effective market regulation and promoting investor confidence through high levels of market transparency and orderly trading. We also endeavour to constantly position ourselves to manage the various regulatory challenges faced.

In January 2008, we embarked on a regulatory reshaping exercise, where we reassessed and benchmarked our overall approaches and processes against best practices to achieve greater performance levels. This led us to employ new and progressive methods to deal with our regulatory concerns. Enhancements were also made to internal processes to achieve greater regulatory effectiveness.

We took a thematic approach and focused on key areas which are central to the maintenance of a fair and orderly market. It revolved around five themes:

• enhancing the standards of CG among listed issuers;
• improving standards of disclosure;
• promoting high standards of business conduct and self-regulation among Participants;
• enhancing the effectiveness of enforcement; and
• elevating the level of education and awareness in the industry.

The effective execution of these thematic plans called for the restructuring of the Regulation Group. This exercise involved carving out the Enforcement Department as a stand-alone division and separate from the Investigation & Enforcement Division, to ensure greater independence and segregation of functions. A dedicated CG Department was also set up to enhance CG practices. Staff skills were continuously enhanced to encourage professional learning, development and embracement of a balanced supervisory culture.