Download → Corporate Finance Thematic Inspection - Good Practices and Key Findings

Introduction

This information paper sets out MAS'supervisory expectations for financial institutions (“FIs”) carrying out corporate finance (“CF”) advisory activities for Initial Public Offers (“IPOs”). Such FIs, as Issue Managers (“IMs”), play an important role in acting as gatekeepers for potential companies seeking a listing in Singapore.

MAS conducted thematic inspections of eight IMs from June 2018 to September 20211 that focused on their controls, policies and procedures (“P&Ps”) relating to the due diligence process for IPOs. Where such IMs were also acting as placement agents, MAS also covered their placement activities to assess the internal controls for such activities. Both banks and holders of a capital markets services licence to carry out CF advisory activities were covered in the thematic inspections.

This information paper sets out the good practices and weaknesses observed, and MAS’ expectations from the inspections. Further guidance on MAS' expectations of the due diligence process is set out in Section B. MAS expects all IMs to incorporate these expectations, and where appropriate, the good practices into their conduct of CF advisory and placement activities.

Areas covered are as follows: