TOUGHER FINANCIAL MEASURES
Legislation to tighten regulations on financial advisers and insurers was passed yesterday.
Amendments to the Financial Advisers Act and the Insurance Act will better align the interests of financial advisers to their customers', by changing how they get paid, said Monetary Authority of Singapore board member Lawrence Wong .
Under the new regulations, a "significant proportion" of their pay will be pegged to non-sales performance indicators, such as whether they took steps to provide enough disclosures.
Mr Wong, who is Minister for Culture, Community and Youth, said the changes will limit upfront commissions to financial advisers, and will require that commissions be spread out over a specified period instead. This will give financial advisers more incentive to support the continuous needs of their customers, said Mr Wong.
PAVING WAY FOR SINGAPORE TO JOIN AIIB
The Finance Ministry yesterday introduced the Asian Infrastructure Investment Bank (AIIB) Bill, which paves the way for Singapore to become a member of the bank.
Singapore signed the AIIB charter on June 29, and the Bill will let Singapore subscribe in the bank's starting capital. The Government has plans to contribute US$250 million (S$338 million) towards the US$100 billion capital of the AIIB. This gives Singapore 0.48 per cent of the total voting share.
The Ministry of Finance said only 20 per cent of the sum has to be paid over five years. The remaining 80 per cent will be paid only when decided by AIIB members in extraordinary circumstances.
The China-led AIIB, which will provide financial support for infrastructure development and regional connectivity in Asia, is set to begin operations next year.
BILL ON SILVER SUPPORT SCHEME
A new Bill for the Silver Support Scheme, unveiled in this year's Budget, was introduced in Parliament yesterday.
The scheme, slated to be rolled out early next year, will give cash payouts to elderly folk who need extra help. About 150,000 elderly Singaporeans stand to receive a payout of $300 to $750 every quarter.
Under the Bill, the Central Provident Fund Board will be appointed as the administrators of the scheme and will be given the powers to conduct means-testing.
The Bill also sets out penalties for those who seek to defraud the scheme. Those who knowingly provide false information to qualify, or to get a higher payout from the scheme, will face a fine of up to $5,000, a jail term of up to one year, or both.