Singapore - Proposed framework on execution of customers’ orders
On 20 November 2017, the Monetary Authority of Singapore (“MAS”) published a consultation paper outlining a proposed framework on execution of customers’ orders.
This framework is set out in a draft Notice on Execution of Customers’ Orders and draft guidelines to the Notice. It would require certain institutions to implement policies and procedures to place and/or execute customers’ orders on the best available terms (the “best execution” requirement), and would enhance existing business conduct requirements applying to such institutions in respect of the handling of customers’ orders.
The new requirements would apply alongside existing rules on the handling and execution of customers’ orders, would enhance investor protection, and are intended to support fair outcomes for customers.
This paper provides an overview of the MAS’ proposals and compares key elements of the proposals with similar rules in the European Union (“EU”), United States (“US”) and Hong Kong.