On 17 April 2023, the Monetary Authority of Singapore (“MAS“) published an information paper titled “Corporate Finance Thematic Inspection: Good Practices and Key Findings” (“Information Paper“). The Information Paper sets out MAS’ supervisory expectations for financial institutions carrying out corporate finance (“CF“) advisory activities for initial public offerings (“IPOs“).
By way of background, between June 2018 to September 2021, MAS conducted thematic inspections of eight Issue Managers (“IMs“), which included banks and holders of a capital markets services licence to carry out CF advisory activities, that focused on their controls, policies and procedures (“P&P“) relating to the due diligence process for IPOs. Where such IMs were also acting as placement agents, MAS also covered their placement activities. The Information Paper sets out the good practices and weaknesses observed, and MAS’ expectations from the inspections. MAS expects all IMs to incorporate these expectations, and where appropriate, the good practices into their conduct of CF advisory and placement activities. MAS also expects them to periodically review their internal controls and P&Ps and strengthen their management oversight and control over such activities.
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