Parliament: IE Singapore Board Act amended to reflect changes in regulatory role

SINGAPORE - Parliament passed a bill on Tuesday (Feb 7) to amend the International Enterprise Singapore Board Act (IESBA), to reflect changes in IE Singapore's role.

Speaking at the second reading of the bill, Minister of State for Trade and Industry Dr Koh Poh Koon said first, the IESBA will be amended to reflect that IE Singapore's regulatory function over the commodity trading industry will be limited to spot commodity trading and the rubber trade industry.

The regulatory oversight of commodity futures contracts, which previously came under IE Singapore, had been transferred to the Monetary Authority of Singapore (MAS) in 2008.

With the passing of the Securities and Futures (Amendment) Bill 2016 this year, IE Singapore will also be transferring the regulation of OTC commodity derivatives contracts to the MAS, for more effective regulatory oversight under a single agency.

Second, the IESBA will be amended to clarify that IE Singapore can collect, compile and analyse information relating to the commodity trade and industry.

This gives IE Singapore, the lead agency responsible for the promotion and development of the commodity trading industry, continued access to company and market data for policy formulation purposes.

Third, the IESBA will be updated to set out the circumstances under which IE Singapore may disclose confidential information related to the commodity trading industry to another public agency.

This would include disclosure of such information for the purpose of formulating or reviewing policy relating to trade.

There was also an administrative amendment to update the purposes for which the Singapore Rubber Fund may be used, to take into account the revised functions of IE Singapore.

This fund is to be used to facilitate the promotion and development of the rubber trading industry, but can also be tapped to promote or develop the broader commodity trading industry, with the view that the benefits also accrue to the rubber trading industry.

IE Singapore had conducted a public consultation on the draft Bill and there were no objections to the proposed amendments.