MAS proposes due diligence requirements for CF advisers

The central bank listed three in its proposal.

The Monetary Authority of Singapore (MAS) has proposed due diligence requirements for corporate finance advisers in a bid to “improve quality of disclosures from entities seeking to raise funds from the public.”

In a consultation paper, the central bank said CF advisers will have to meet the following requirements when conducting due diligence on transactions:

• Exercise reasonable judgement in determining the scope of the due diligence work to be performed on a CF transaction;
• Assess the veracity of information obtained in the course of their due diligence;
• As issue managers of initial public offerings (IPOs), satisfy additional requirements such as assessing the suitability of listing the applicant and conducting an independent review of the due diligence performed by the team responsible for advising on a specific IPO.

MAS Assistant Managing Director for Capital Markets, Lim Tuang Lee, said the proposed requirements are “consistent with best practices in major jurisdictions and seek to strengthen investor confidence in our capital markets.”

Meanwhile, interested parties can submit comments on MAS’ proposal until 15 February 2022 on this form: https://form.gov.sg/#!/61b2c5ba0200290012824e6d