<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published November 20, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>SGX: Public rap for misconduct is enough
This contrasts with Indonesia's use of fines on directors
By JAMIE LEE
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR><TR class=font10><TD colSpan=2><!-- AddThis Button BEGIN -->
<SCRIPT type=text/javascript src="http://s7.addthis.com/js/250/addthis_widget.js#pub=xa-4ae026ba0e05c08d"></SCRIPT><SCRIPT type=text/javascript> var addthis_config = { username: "xa-4ae026ba0e05c08d", services_compact: 'facebook, twitter, favorites, myspace, google, digg, live, delicious, stumbleupon, more', services_exclude: 'print', data_use_flash: false } </SCRIPT> <!-- AddThis Button END --></TD></TR></TBODY></TABLE>
IT is enough at this point for the Singapore Exchange (SGX) to publicly criticise errant company directors for misconduct, said head of risk management and regulation Yeo Lian Sim yesterday.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Ms Yeo: 'If directors know that their reputations are on the line, they would be careful'
'What we can do is to reprimand or criticise directors,' said Ms Yeo at a panel discussion at the Asian investors' corporate governance conference organised by the Securities Investors Association (Singapore).
'That is enough. If directors know that their reputations are on the line, they would be careful.'
Responding to a question to SGX's dual role as a profit-making company and a market regulator and whether it was a conflict of interest, Ms Yeo said: 'Suffice to say, my regulator, MAS (Monetary Authority of Singapore) seems to be satisfied with what we do.'
=> TAICHI!
During the same discussion, Professor CK Low from the Chinese University of Hong Kong also debunked the notion that having more disclosure as part of a disclosure-based regime is necessarily a good thing, as he pointed out that there has to be disclosure of relevant matters.
'The more you disclose, the more you confuse,' he said, and referred to a recent IPO candidate in Hong Kong that issued a 900-page prospectus weighing about three kilograms.
During another panel discussion, Peter Taylor, head of corporate governance at Aberdeen Asset Management Asia, noted that corporate governance did not necessarily save Asian banks from a financial meltdown, as seen in America and Europe.
Instead, Asian banks had been spared because they are traditional lenders and have traded in less complex instruments.
'Financial institutions in Asia will inevitably become more complex and the question for regulators and boards is, 'do we understand the risks that the institutions are taking? If you don't understand the risks, don't (take) it'.'
Christopher Leahy, managing director of Kroll Associates noted that investors and corporates all had some blame to share in the crisis. 'Everybody was swept in this alchemy that the US had managed to turn base metal into gold.'
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>SGX: Public rap for misconduct is enough
This contrasts with Indonesia's use of fines on directors
By JAMIE LEE
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR><TR class=font10><TD colSpan=2><!-- AddThis Button BEGIN -->
<SCRIPT type=text/javascript src="http://s7.addthis.com/js/250/addthis_widget.js#pub=xa-4ae026ba0e05c08d"></SCRIPT><SCRIPT type=text/javascript> var addthis_config = { username: "xa-4ae026ba0e05c08d", services_compact: 'facebook, twitter, favorites, myspace, google, digg, live, delicious, stumbleupon, more', services_exclude: 'print', data_use_flash: false } </SCRIPT> <!-- AddThis Button END --></TD></TR></TBODY></TABLE>IT is enough at this point for the Singapore Exchange (SGX) to publicly criticise errant company directors for misconduct, said head of risk management and regulation Yeo Lian Sim yesterday.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Ms Yeo: 'If directors know that their reputations are on the line, they would be careful' J*O*K*E*R
</TD></TR></TBODY></TABLE>This was in contrast to the use of fines on directors by the Indonesia authorities to punish misconduct.'What we can do is to reprimand or criticise directors,' said Ms Yeo at a panel discussion at the Asian investors' corporate governance conference organised by the Securities Investors Association (Singapore).
'That is enough. If directors know that their reputations are on the line, they would be careful.'
Responding to a question to SGX's dual role as a profit-making company and a market regulator and whether it was a conflict of interest, Ms Yeo said: 'Suffice to say, my regulator, MAS (Monetary Authority of Singapore) seems to be satisfied with what we do.'
=> TAICHI!
During the same discussion, Professor CK Low from the Chinese University of Hong Kong also debunked the notion that having more disclosure as part of a disclosure-based regime is necessarily a good thing, as he pointed out that there has to be disclosure of relevant matters.
'The more you disclose, the more you confuse,' he said, and referred to a recent IPO candidate in Hong Kong that issued a 900-page prospectus weighing about three kilograms.
During another panel discussion, Peter Taylor, head of corporate governance at Aberdeen Asset Management Asia, noted that corporate governance did not necessarily save Asian banks from a financial meltdown, as seen in America and Europe.
Instead, Asian banks had been spared because they are traditional lenders and have traded in less complex instruments.
'Financial institutions in Asia will inevitably become more complex and the question for regulators and boards is, 'do we understand the risks that the institutions are taking? If you don't understand the risks, don't (take) it'.'
Christopher Leahy, managing director of Kroll Associates noted that investors and corporates all had some blame to share in the crisis. 'Everybody was swept in this alchemy that the US had managed to turn base metal into gold.'
</TD></TR></TBODY></TABLE>
