Regulation

DISCLOSURE STANDARDS

At Regulation, we have a strong focus on adequacy and timeliness of disclosures. Efforts were heightened to ensure issuers make appropriate disclosure on all material information to the market place to aid informed decisions. There was also greater engagement with listed issuers and advisers to enhance the standards of disclosure.

For 2008, Listing issued 192 announcement queries (2007:144) requiring listed issuers to disclose additional information on their announcements to ensure adequate information is released to the market. In terms of media queries, a total of 205 queries were made for 2008 (2007: 284) to clarify, deny or confirm rumors or reports on material information that have not been previously disclosed.

To further enhance the standards of disclosure, we embarked on a 'Disclosure Project' in 2008. This entailed a review of our current disclosure requirements, a comparative study against other benchmarked jurisdictions' and obtaining feedback from the industry. This review is expected to result in certain changes being made to the LR and issuance of guidance notes to listed issuers.

BUSINESS CONDUCT AND SELF-REGULATION

We were well positioned to deal with the uncertain and volatile market environment through the implementation of several safeguard measures. These actions were aimed at securing investor protection and preventing systemic risks, particularly from defaults arising from volatile market conditions. The measures include heightened supervision of Participants, vigilant monitoring of their financial conditions and clients' assets under their custody, review of key market indicators, industry positions and exposure, conducting impact testing for potential deterioration in positions held, and constantly engaging Participants.

We adopted a risk based approach with respect to onsite inspections on Participants. Inspections were focused on Participants with high risk profiles and thus higher impact on market integrity. As a result, we were able to prioritise our resources and focus on selected areas and Participants. This translated into execution of our supervisory activities in a more efficient and effective manner without compromising on the quality of our supervisory activities.

For disclosures in circulars by listed issuers, a risk based approach was exercised for effective quality control. Routine circulars were post-vetted, medium risk circulars subjected to a limited review and complex circulars had to go through a full review.