MAS is fully engaged in the OTC work of the FSB, the International Organisation of Securities Commissions, and the Committee on Payment Systems and Settlements. We will fully implement the OTC derivatives reform agenda. There must be consistency in implementation across jurisdictions, but there cannot be precise equivalence. The OTC derivatives landscape in Asia and Singapore differs considerably from that in the US and Europe. We have smaller markets and less complex derivative instruments. We have to consider how to implement the G20 reforms effectively while taking into account enforcement issues and the characteristics of our markets. MAS will consult the industry on its proposals for OTC derivatives market reforms by the end of this year. We aim to meet the G20 target to implement the reforms by end-2012. 8  BIS central bankers’ speeches  Conclusion – shared responsibility Let me conclude. In regulating capital markets, we are not dealing with a particular industry or a particular type of institution. We are trying to create the conditions within what is essentially an ecosystem, so that its risks are managed and its economic benefits sustained. But these benefits cannot be achieved by regulation alone. As Winston Churchill puts it, “If you have ten thousand regulations you destroy all respect for the law”. There is a limit to how far regulation can go without undermining compliance, not to mention efficiency and innovation. All components of the capital market ecosystem must play their part. A well-functioning capital market is a shared responsibility.
MAS safeguards the interests of investors in five ways:   First, we demand stringent disclosure of information by issuers;    Second, we require transparency in the information disclosed;    Third, we set standards for intermediaries who sell investment products to provide quality financial advice;    Fourth, we promote investor education, so that investors are empowered to make informed decisions.   Fifth, we provide affordable and accessible dispute resolution mechanisms for investors who feel aggrieved by the investment process. Let me take each of these aspects in turn. BIS central bankers’ speeches  3  Disclosure There is nothing like disclosure to instill market discipline. In the words of US Supreme Court Justice Louis Brandeis, “Sunlight is said to be the best of disinfectants; electric light the most efficient policeman”. Disclosure is about shining that light so that all can see and make informed decisions. Investors are entitled to accurate and timely disclosure of material information so that they can assess the risks and rewards of their investment. Disclosure works not because all investors understand every word that is disclosed. Disclosure works because it facilitates scrutiny by experts in the market; it is this professional scrutiny that acts as a check on issuers and helps to inform the broader investor base. Take for example an IPO prospectus.