1. Parallel Presentation The New People’s Bank: Ending On A High Note.

2. “Globalization will make our societies more creative and prosperous, but also more vulnerable” - Lord Robertson Parallel Presentation

3. Financial Globalization Intensive cross border financial and payment flow Broad array of financial instruments Greater international risk-sharing. International profile of financial participants enhance our development as a financial hub Integrated markets

4. Provides a greater range of job opportunities Cheaper source of financing Deeper, more liquid markets Platform for countries to work together Gains from Financial Globalisation

5. Singapore’s Financial Liberalization Roadmap Disclosure based regime Greater leeway in financial innovation Financial Liberalisation 1998 Banking Consolidation Qualifying Full Bank (QFB) scheme Encourage strong local banks 199920012002 Investors take responsibility for their decisions Intensify Competition

6. Singapore’s Achievements Premier Asset Management Centre with assets worth approximately S$ 1 trillion Second largest over-the-counter derivatives trading centre in Asia Top 5 most active foreign exchange trading centres in the world Growing wealth management hub of the East Singapore Financial Hub

7. Impact of Financial Globalisation on Local Banks Shift from bank-centered to market-based financing resulting in decline in banks’ core business areas Issue of QFB licences to foreign banks leading to intense competition at the retail level

8. Government Need to embrace financial innovation Balance between regulation and empowering investors Financial Institutions Intense competition resulting in need to follow other banks Cater to client needs Additional revenue stream Why Sell Complex Financial Products? Investors Enhanced investor choice Better returns albeit with higher risk Maybe suitable for a select group of educated investors

9. Angry Investors Flood Speaker's Corner seeking redress 1 st Video Presentation

10. Existing Financial Education Multi-agency Financial Education Steering Committee MoneySENSE –National financial education programme launched in 2003 –Comprise of basic money management, financial planning and investment know-how Short courses/seminars are also available –Singapore Exchange, SGX –Security Investors Association (Singapore), SIAS –NTUC, etc

11. DBS 'High Notes 5' Investors:They pumped in life savings and now feel cheated. Investor Education Many consumers/sellers do not understand financial products that they deal with. This has led to cases where retirees lost all of their savings, and also, young educated financial professionals who are unsure of the financial products they are sell. Tue, Dec 23, 2008 AsiaOne Lone protestor's plea: 'Return my medical fee'

12. SKIT 1 Skit 1

13. 2 nd Video Presentation MAS Proposed New Guidelines On Investment Products Sales On CD rom

14. SKIT 2 Skit 2

15. Revised MAS guidelines Short,user-friendlyProductHighlights Sheet to promote more effectivedisclosure Healthwarning to accompany complexfinancialproducts Stop bank tellers from referring customers to financial advisors to sell investment products More MAS leeway to go after errant financial institutions Better retail investor protection

16. Rebuilding Relationships with Local Clientele What more can banks do? Investment Product Introduce easy-to-understand financial products Transparent marketing techniques Sales Process Better alignment of incentives structure Ethical, knowledgeable and trustworthy sales staff

17. Rebuilding Relationships with Local Clientele What more can banks do? Investor Education Conduct regular financial seminars Distribute clear financial brochures Corporate Strategy Embark on re-branding strategy to restore client confidence Refocus corporate culture on fair trading with customers

18. A Fine Balancing Act Financial Regulation Financial Development Singapore Status as a Financial Hub

19. Conclusion It is the job of the MAS to regulate the finance industry. However, over-regulation would lead to a disintegration of the sovereignty of the sector. What is needed is "smarter regulation" that will neither constrain choice nor innovation but make transparent the consequences of different choices in the financial system