Securities Exchange Commission needed to avoid SGX's conflict of interest: SMCCA

Double roles are tough for the SGX.

The Small and Middle Capitalisation Companies Association (SMCCA) today reiterated its call for the creation of a Securities and Exchange Commission in Singapore.

SMCCA issued the statement in response to an opinion piece by by Mr Ong Chong Tee, Deputy Managing Director (Financial Supervision) at the Monetary Authority of Singapore (MAS).

Ong said that stated that the central bank sees “a need to mitigate potential conflicts of interests and ensure efficiency in regulation” for exchanges and that “there could be scope to reduce any overlaps between the oversight functions of the MAS and the exchanges”.

SMCCA said that the SGX's double role of promoter and regulator creates a potential conflict of interest in the securities market.

“One obvious way to avoid any potential conflict of interest is for Singapore to realign with international practice and separate the roles of Promoter and Regulator. This would involve the creation of a Securities Exchange Commission or have a dedicated department within MAS. SMCCA is glad to see MAS pointing out this potential conflict now and hopes that MAS can address this issue sooner and not later,” said SMCCA.