What the capital market needs is a bit more regulatory support

SINGAPORE (Oct 31): The time may have come for new regulatory bodies to be created to support the development of the local capital market, according to Tan Choon Wee, managing director and founder of Advance Capital Partners Asset Management.

“The recent spate of defaults in the bond market here arose primarily because of our weak regulatory structure and framework,” Tan tells The Edge Singapore, explaining that the country lacks a “securities commission that governs and regulates the issuance of any securities or instruments including these [multi-currency medium-term notes].”

Tan is no stranger to controversy. In an earlier interview with The Edge Singapore, Tan was an advocate for redeemable convertible notes (RCNs) — which some have coined “death spiral convertibles” — but with a greater emphasis on risk management.

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