SINGAPORE - The Competition and Consumer Commission of Singapore (CCCS) is seeking public feedback on DBS, UOB and OCBC’s joint implementation of a Supplementary Retirement Scheme (SRS) framework.

On Nov 20, CCCS said that it accepted a joint application from the banks for a decision on whether the proposed framework would infringe section 34 of the Competition Act, which prohibits agreements or concerted practices by undertakings which prevent, restrict or distort competition within any market in Singapore.

The bank trio had proposed to jointly implement a framework to govern their relationship with SRS product providers, including onboarding and management. SRS accounts are managed by DBS Bank, UOB and OCBC Bank.

In their application, the banks flagged that the framework could raise competition concerns as they would be horizontal competitors in both the upstream and downstream markets for SRS products.

They will also become “gatekeepers” to SRS product providers who wish to supply products in the downstream markets – SRS members in Singapore. Upstream players include SRS product providers.

Others possibly affected by the framework include players that supply SRS accounts and related account management and transaction facilitation services for SRS members and product providers who have already been onboarded.

That being said, the bank trio noted that the framework is necessary for the preservation of the SRS and could result in efficiencies. These include establishing certain baseline standards for the onboarding of product providers or providing SRS members with a broader choice of products.

The proposed framework will also ensure an even playing field among downstream market participants, as it includes an appeals mechanism for SRS product providers who disagree with any decision by DBS, UOB and OCBC as SRS operators.

CCCS is inviting public feedback until Dec 11, 5pm. More information can be found on its website.
THE BUSINESS TIMES