Stricter regulation for bonds and REITs eyed

SGX RegCo is creating a working group to improve disclosures related to retail bonds.

Bloomberg reports that Singapore is exploring ways of tightening regulation of retail bond issues and REIT sector in an effort to strengthen protection for investors left reeling by a series of bond defaults. 

SGX RegCo is creating a working group to review and improve disclosures relating to retail bonds. The working group will look into ways to provide clarity on the role of trustees and how investors can better exercise their rights in the case of a default, Tan Boon Gin, SGX RegCO CEO said in a statement.

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Tan said SGX RegCo will also be consulting on a more robust regime for property valuations including proposals to ensure property valuers have qualifications from professional bodies, and for valuation reports to meet standards equivalent to those set by the Singapore Institute of Surveyors and Valuers.

The regulatory arm of the SGX is also mulling a review of minimum trading price policy for listed companies, as well as listings due-diligence guidelines issued by the Association of Banks in Singapore. It is also considering a new framework for the quarterly reporting of companies.

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