The Monetary Authority of Singapore ("MAS") has published an Information Paper on its Corporate Finance Thematic Inspection, which covers Good Practices and Key Findings. This information paper sets out the MAS’ supervisory expectations for financial institutions (“FIs”) carrying out corporate finance (“CF”) advisory activities for IPOs and follows the MAS' thematic inspections conducted between June 2018 and September 2021.
The paper sets out the good practices and weaknesses that MAS has observed in its thematic inspections, and also covers (i) the MAS' expectations of issue managers ("IMs") when conducting due diligence on issuers, (ii) governance, compliance, and audit measures IMs should take in respect of CF activities, (iii) reliance on the findings and opinions of experts and advisers by IMs, and (iv) record keeping by IMs. The MAS has stated that it expects all IMs to incorporate these expectations and where appropriate, the good practices into their conduct of CF advisory and placement activities. IMs should also periodically review their internal controls and policies and procedures, and strengthen management oversight and control over such activities, given the important role which IMs play as gatekeepers for potential companies seeking a listing in Singapore. Finally, the MAS states that it will continue to provide further guidance to improve industry practice for the CF advisory sector in Singapore, where appropriate.
The information paper may be accessed at the link here.
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