Singapore to Raise Standards for Issue Managers
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The Association of Banks in Singapore has announced revised due diligence guidelines for companies planning to list on the Singapore Exchange, with immediate effect.
Last revised in 2016, the new set of guidelines set out expectations and recommendations on due diligence work that issue managers and full sponsors carry out during the initial public offer (IPO) / reverse takeover (RTO) and listing process.
They were developed in close collaboration with the Singapore Exchange Regulation (SGX RegCo).
Key updates include: An increased focus on the assessment of the adequacy and effectiveness of the issuer’s internal controls to meet its business needs and challenges as a listed company; the assessment of the sustainability and viability of the issuer’s business; and targeted guidelines for due diligence on issuers operating in specialized, restricted or niche industries, and/or in higher-risk jurisdictions.
Ong-Ang Ai Boon, director at the Association of Banks in Singapore (ABS), said the revised guidelines are necessary to ensure they are relevant to the constantly changing economic climate.
With the increase in issuers from more nascent sectors such as technology that are seeking equity capital, it becomes especially important for issue managers, full sponsors and their professionals to adapt due diligence practices that address the particular needs of
Questions & Answers
Q.What is the primary purpose of the updated guidelines from the Association of Banks in Singapore?
What is the primary purpose of the updated guidelines from the Association of Banks in Singapore?
The revised guidelines aim to raise standards for issue managers and full sponsors. They set out expectations for due diligence during the IPO/RTO and listing process, ensuring relevance in the changing economic climate and for nascent sectors.
Q.When were these due diligence guidelines last updated before this announcement?
When were these due diligence guidelines last updated before this announcement?
The due diligence guidelines from the Association of Banks in Singapore were last revised in 2016. The current updates introduce new expectations and recommendations for issue managers and full sponsors, effective immediately.
Q.Which specific areas of due diligence have seen an increased focus in the new guidelines?
Which specific areas of due diligence have seen an increased focus in the new guidelines?
The new guidelines place increased focus on assessing the issuer's internal controls, the sustainability and viability of its business. They also include targeted guidelines for issuers in specialized, restricted, niche industries, or higher-risk jurisdictions.
Q.Why was it considered necessary to update these due diligence guidelines at this time?
Why was it considered necessary to update these due diligence guidelines at this time?
The updates were deemed necessary to ensure relevance in the constantly changing economic climate. With more issuers from nascent sectors like technology seeking equity capital, adapting due diligence practices is crucial.
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