MAS mandates due diligence and conduct requirements for CF advisers

The central bank said the requirements will allow investors to make informed decisions.

The Monetary Authority of Singapore (MAS) has required corporate finance (CF) advisers to follow baseline standards for due diligence and conduct.

According to the MAS, the requirements will raise “ the standards of conduct of CF advisers, improve the quality of disclosures and allow investors to make informed decisions.”

Under the standards set by MAS, CFs will need to conduct background checks and interviews with relevant stakeholders and site visits of prospective issuers’ key assets.

They will also need to assess the knowledge, skills and experience of third-party service providers, and ensure that material issues are satisfactorily resolved or disclosed.

“CF advisers will also have to comply with enhanced requirements to mitigate conflicts of interests, such as where the adviser’s related corporations or controlling shareholders also provide services to the same customer,” the MAS said.