Whom and How We Regulate
Whom we regulate
CODT regulates non-bank financial institutions whose roles are to channel funds from lenders to borrowers by accepting long-term or specialised types of deposits and by incurring liabilities on their own account through the issuing of bills, bonds or other securities. Such institutions often specialise in lending to particular types of borrowers and in using specialised financial arrangements such as financial leasing, securitised lending, and financial derivatives.
Entities falling under non-bank financial institutions category are:
- Insurance & re-insurance companies
- Leasing companies
- Credit finance companies
- Market intermediaries: fund managers, portfolio managers, investment managers / asset managers, custodians, brokers, investment advisers
- Cooperative credit unions
We regulate Investment Schemes.
This category comprises institutions that are organised financial arrangements that consolidate investor funds for the purpose of acquiring financial assets.
Entities falling under Investment Schemes category are:
- Authorised mutual funds
- Unit trusts
- Global Business funds and other Collective Investment Schemes.
- Pension and Equity funds
The Commission also monitors Financial Service Providers.
This includes firms or individuals that arrange, execute, or otherwise facilitate client transactions in financial assets by providing specialised services to their customers. These units do not, as a main business activity, raise funds or extend credit on their own account.
Entities falling under Financial Service Providers category are:
- Management Companies / Corporate Trustees
- Captive Managers
- Collective Investment Scheme Managers
- Stockbroking companies / Underwriters
- Insurance brokers
- Professional Financial Advisers
How we do it
- Set licensing standards and grant licences
- Enforce Codes and Guidance
- Authorise investment products and services
- Ensure compliance with expected standards of conduct and the law
- Handle complaints
- Investigate malpractices and fraud and take corrective actions.
- Conduct off-site and on-site compliance visits of licensed entities.
Our Approach to Integrated Regulation
- The CODT has begun to implement a risk-assessment approach to the regulation of the Futures Contract Market under its remit, which integrates and simplifies the different approaches adopted by individual regulators of the past.
- The new approach seeks to identify and focus regulatory attention on institutions and activities that are likely to pose the greatest risk to market confidence; and to act upon them in an integrated manner so as to avoid any spill over effects in the event of failure or collapse of any firm under our purview.
- We believe the integrated approach will make it easier to coordinate supervision of firms with multiple authorisations operating in various sectors of the financial sector.
- Integrated regulation will also help us assess additional benefits to be gained by bringing into single teams all the resources needed to supervise complex financial groups.