Date: April 27, 2017
SIAS is pleased with the establishment of SGX RegCo. SIAS has, for some time, been advocating for completely independent body to regulate the market and be detached from the listed SGX entity. There has been a perception that SGX is both a business entity as well as a regulator is like the policeman doing business with the citizens he is supposed to police. Although, SGX has managed the conflict thus far, but the perception continues to exist. With the separation, the conflict situation need not be a major issue. It is comforting to know that majority of the Board at RegCo will comprise of independent directors, including the Chairman. It also good that the CEO will only report to the RegCo Board.
The new Board at RegCo may have to review some of the issues that are of serious concern to the issuers and investors. Areas such as quarterly reporting, which results in short term mindset within a company, which may not be aligned with the long term investment horizon of investors. Half yearly reporting, instead of quarterly reporting may be sufficient for investors to make an informed decision especially for mid and small cap; the rising compliance cost affecting the bottom line and management time; general revision of rules and policies relating to misconduct in listcos and enhance safeguards, where necessary, to protect the investment of our investors.
David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)
