Apr 28 2008 Trond Vagen in Hong Kong
Singaporean and Japanese regulators have concluded their fourth meeting on financial services regulatory cooperation, as part of an effort to strengthen supervisory ties between the two countries following an agreement set out in 2002. The meeting, held at the Monetary Authority of Singapore, saw the MAS and Financial Services Agency discuss a strengthening of cooperation between the two supervisory authorities amid rapidly growing Asian markets.
As part of its revamped financial regulation plan, issued late last year, Japan wants to boost cooperative efforts with its neighbours. The FSA said that the meeting with Singapore's MAS was referred to in its "Plan for Strengthening the Competitiveness of Japan's Financial and Capital Markets", issued on December 21, 2007.
The talks centred on recent developments in financial regulation in Japan and Singapore, as well as international developments. The two regulatory authorities also reaffirmed their commitment to strengthen cooperation between the financial authorities in both countries. Nobuyoshi Chihara, the FSA's deputy commissioner for international affairs, headed the Japanese delegation, while the Singaporean delegation was led by Teo Swee Lian, deputy managing director in charge of prudential supervision at the MAS.
Following an initial cooperation agreement between the two countries' stock exchanges, Japan's FSA and Singapore's MAS established closer contact in 2002. The two regulators formed a "Joint Committee on Financial Services Cooperation" under a provision in the Japan-Singapore Economic Partnership Agreement, which took effect on November 30, 2002. This was aimed at developing the two countries' financial markets and financial infrastructure, as well as contributing to the effective enforcement and administration of the countries' securities laws.
The agreement has yielded some results so far. In 2004, the MAS fined three employees of the Government of Singapore Investment Corporation for insider trading breaches following a tip-off by the Japanese financial regulator. The charges related to trading in shares of Sumitomo Mitsui Financial Group on the Tokyo Stock Exchange.
The meeting comes as more Japanese companies are turning to Singapore for overseas investment. A recent report by the Japanese External Trade Organisation highlighted Singapore's light-touch regulatory regime and strong infrastructure as important factors attracting Japanese businesses.
