Singapore’s central bank and financial regulator will look into whether the liquidity risk management framework for asset managers has to be reviewed.
Chia Der Juin, managing director of the Monetary Authority of Singapore (MAS), noted that global regulatory bodies such as the Financial Stability Board and the International Organisation of Securities Commissions have called for enhancements to strengthen the financial industry’s resilience in both normal and stressed market conditions.
“In line with this, MAS will study the need to review the current framework for liquidity risk management by asset managers, and will engage the industry when ready,” Chia said in his keynote speech at the Investment Management Association of Singapore’s Investment Conference 2025 last week.
He said asset managers must have an effective liquidity and market risk management framework and have to regularly stress test their portfolio risks.
Chia also said that providers and distributors of investment products should ensure that marketing and advertisements are “fair and balanced”.
“Marketing should not over-emphasise product features that are not sustainable across a robust range of scenarios. A sudden withdrawal of such product features could cause a loss of confidence and a redemption spike,” he said.
The conference on April 23 also saw the launch of IMAS’s climate handbook and a chatbot powered by artificial intelligence called Climate BOT that helps answer climate-related investment questions.
According to Carmen Wee, chief executive officer of IMAS, Climate BOT is the first generative AI-powered environmental, social and governance chatbot.
She said the handbook was developed in partnership with French asset manager Amundi, and provides asset managers a framework for integrating climate considerations into investment decisions.