Evolving the Regulatory Approach: Shared Accountability, Efficiency and Embracing the Digital Age

Capital markets are constantly evolving and innovating, impacted by global and domestic events and shaped by the growth of technological advancement. It is therefore essential for the SC to ensure its regulatory approach remains prudent yet progressive to maintain the integrity and fairness of the capital market, while spurring its progress and development. In 2022, the SC strengthened the surveillance and supervision of markets, intermediaries and regulated individuals. This was done mainly through focusing on a number of strategic priorities to build resilience and trust in our markets by encouraging good conduct through the promotion of responsible businesses, enhancing governance standards as well as cultivating self-regulation and a compliance culture. Effective enforcement actions were also carried out to raise standards of behaviour and deter misconduct, while investor protection initiatives were implemented to further bolster market confidence and stability.

To ensure the SC’s long-term operational and technology resilience, work has commenced towards the development of a centralised data platform and an application architecture to boost the SC’s overall technology adoption. Focus has been on enhancing the overall gatekeeping, surveillance, supervision, and investor protection functions of the SC, as well as greater knowledge sharing.

Against a backdrop of a challenging macroeconomic environment, tightening of financial conditions and concerns arising from geopolitical conflicts, the SC remained vigilant of emerging risks and vulnerabilities that may pose a threat to the systemic stability of the domestic capital market.

While the SC’s primary function is to preserve the integrity of a fair and efficient capital market, efforts continue to be made to ensure that we remain an efficient and effective regulator with a focus on continuous improvement. Following interactions with key market participants, several requirements were streamlined to make the SC’s processes and reporting more user-friendly.

The SC continued to encourage intermediaries and businesses to adopt a broader stakeholder-centric approach in their business strategies and risk management. 

The SC streamlined several enforcement initiatives in 2022, to enhance the effectiveness, efficiency and swiftness of its enforcement actions which involved focusing on breaches of securities law concerning securities fraud, unlicensed activities, and disclosure breaches, as part of the SC’s enforcement priorities.

The SC continued its holistic multi-pronged approach in protecting and empowering investors, especially in light of the rise in scams and unlicensed activities in the capital market. Additionally, the SC continued its efforts to empower investors through social media engagements and other investor education outreach programmes, both virtually and physically.

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