The Monetary Authority of Singapore (MAS) lifted its ban on DBS Bank Ltd, Malayan Banking Berhad Singapore Branch and the Royal Bank of Scotland N.V. Singapore Branch from selling structured notes.

The regulator confirmed the three financial institutions have formally confirmed they have taken measures to rectify all the weaknesses identified in MAS' investigations.

They have also demonstrated (through the appointment of an external source) they have reviewed and strengthened internal processes and procedures for the provision of financial advisory services across all investment products.

The three have publicly pledged their commitment to effectively implement various measures on an ongoing basis in order to deliver fair dealing outcomes to their customers. These include reviewing their remuneration framework, stepping up training and supervision of their staff and enhancing the sales and advisory process.

Despite the lifting of the ban DBS has assured MAS that in order to uphold a consistent set of standards across the region, it will not sell structured notes to retail customers anywhere in the group until it has rolled out enhanced measures and sales processes in all its key markets. This includes Singapore, even though the measures have already been implemented here.

The status of the MAS' directions for the other financial institutions are as follows:

• DMG & Partners Securities Pte Ltd and UOB Kay Hian Pte Ltd have asked MAS for additional time to work with their external persons to ensure that the enhanced measures put in place are sufficiently robust and in accordance with MAS' directions.


• The ban on the sale of structured notes continues for the remaining four financial institutions - CIMB-GK Securities Pte Ltd, Kim Eng Securities Pte Ltd, OCBC Securities Pte Ltd and Phillip Securities Pte Ltd - until the end of the period of their ban. MAS will only lift the ban when we are satisfied with the measures they have put in place.


• Hong Leong Finance Limited has voluntarily ceased the provision of new financial advisory services, including the sale of structured notes.