Principle 7: Place principal responsibility for risk oversight on the institution’s board and management

Our supervisory approach seeks to reinforce the responsibility of the board and management of financial institutions (FIs) to:

Principle 8: Leverage on relevant stakeholders, professionals, industry associations and other agencies

Besides MAS, FIs have other stakeholders such as shareholders, creditors, counterparties, depositors, policyholders and home supervisors who also have an interest in the institutions’ continued financial health and stability. MAS interacts and works closely with these stakeholders and industry associations to complement our own supervision of FIs.

MAS also cooperates with other agencies such as the Council on Corporate Disclosure and Governance, Ministry of Finance, and Accounting and Corporate Regulatory Authority, to strengthen corporate governance and disclosure standards.

Principle 9: Rely on timely, accurate and adequate disclosure by institutions rather than merit-based regulation of products to protect consumers

Under a merit-based regime, the regulator assesses suitability of a product before it can be introduced in the marketplace.

MAS has moved to a more disclosure-based regime, where the consumer makes well-informed decisions based on material information made available to the consumer. This encourages innovation and facilitates development of a more sophisticated body of consumers.

MAS's role is therefore to put in a place a regulatory framework that facilitates timely, accurate and meaningful disclosure of material information that consumers could reasonably rely on.

Principle 10: Empower consumers to assess and assume for themselves the financial risks of their financial decisions

Under a disclosure-based regime,  consumers need to know how to make use of disclosed information when making financial decisions e.g. understand the nature of different financial products and the considerations to look out for.

In this regard, MAS works in partnership with public sector agencies and industry bodies on consumer education.

Principle 11: Give due regard to competitiveness, business efficiency and innovation

MAS takes into account the business and operational concerns of FIs and the industry so as not to hinder enterprise and innovation, as long as these are accompanied by good governance and risk management. They should also be supported by sensible and sustainable long-term strategies.

In our dealings with FIs, we seek to be professional and to respond to their requests in a timely manner.

Principle 12: Adopt a consultative approach to regulating the industry

MAS actively seeks feedback from market practitioners and the public, to help us develop regulations that take into account market realities and industry practices.

Consultation also helps to pre-empt implementation problems, minimise unintended consequences, and foster better industry understanding and support.

Promoting a sound and progressive financial services sector is an integral part of ensuring the success and resilience of the Singapore economy. Apart from its direct and significant contribution to gross domestic product, the financial services sector intermediates between savers and borrowers, allocates financial resources efficiently, and thereby enhances economic growth and job creation.

In the end, it is the combined efforts of MAS, the industry and relevant stakeholders that contribute to financial stability and resilience while promoting enterprise and innovation in Singapore.

For more information, please read the 24-page MAS monograph, Objectives and Principles of Financial Sector Oversight in Singapore.