Monetary Authority of Singapore Annual Report 2010/2011
Our Work
ENSURING SAFETY AND SOUNDNESS OF FINANCIAL INSTITUTIONS AND FINANCIAL SYSTEM   27
Prudential Supervision and Surveillance   27
Fostering a Sound and Reputable Financial Centre   27
Property Market Measures   28
Review of Deposit Insurance Scheme in Singapore   28
Insurance Resolution and Policy Owners' Protection   28
Review of Insurance Act   29
Enhancing Safeguards for Retail Customers   29
Enhancing Regulatory Regime for Fund Management Companies   30
Achieving Fair Dealing Outcomes   30
Enhancing Corporate Governance Standards   31
Conclusion of First Two Civil Penalty Cases   31
Box 3: The Representative Notification Framework   32
Enhancing Market Conduct   33
Audit Assurance   33

Conclusion of First Two Civil Penalty Cases

In 2010, MAS saw the conclusion of its first two civil penalty trials. On 27 May 2010, the High Court found that the former Chief Risk and Financial Officer of a Singapore-listed company contravened the insider trading prohibition in the Securities and Futures Act and, on 26 July 2010, ordered that he pay a civil penalty of $67,500 and legal costs to MAS. On 1 March 2011 the Court of Appeal fully dismissed the defendant's appeal against the High Court's decisions.

Separately, on 17 September 2010, the High Court ordered a Malaysian fund manager and its Chief Executive Officer to each pay a civil penalty of $250,000 to MAS for trading with the intention of creating a false or misleading appearance in the price of shares of a Singapore-listed company. The appeal by the defendants in this case was heard by the Court of Appeal on 14 March 2011 and the verdict has yet to be released at the time of printing of this report.