Investment Banking Report

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					Singapore Investment Banking Association

24 Raffles Places, #16-02 Clifford Centre, Singapore 048621
Tel: (65) 6532 7565 • Fax: (65) 6532 3390
Email: smbai@pacific.net.sg • website: siba.org.sg
Singapore Investment Banking Association




                                    Annual Report 2007
ContentS
1 Notice of Annual General Meeting
2 Chairman’s Review
3 Council Members
4 Report of the Council
  •	Council	Members	for	2007/2008
  •	Membership
  •	Standing	Committees
         Corporate Finance (CF)
         Debt Capital Market (DCM)
        	 Equity	Derivatives	&	Structured	Products	(EDSP)	
  •	Report	on	the	activities	of	the	committees	
  •	Report	on	other	activities
Auditor’s	Report
Statement	of	Income	&	Expenditure
Balance	Sheet
Statement	of	Changes	in	Fund	Balance
Cash	Flow	Statement
Notes	to	the	Financial	Statements
List of Members
                  NoTicE oF ANNuAl GENErAl MEETiNG


NOTICE IS HEREBY GIVEN THAT the Thirty-Third Annual General Meeting of Singapore Investment
Banking Association will be held at the Raffles Hotel Singapore, Casuarina Suites A&B, 1 Beach Road,
Singapore 189673 at 11:45 a.m. on 23 May 2008 (Friday) for the following purposes:

1.   To confirm the Minutes of the Thirty-Second Annual General Meeting held on 21 May 2007.

2.   To receive the Report of the Council : Rule 19(a).

3.   To receive and adopt the audited Balance Sheet and Accounts for the year ended
     31 December 2007 : Rule 19(a).

4.   To appoint Auditors for 2008: Rule 19(b).

5.   To consider any resolutions which may have been duly submitted to the meeting in accordance
     with Rule 21 of the Constitution of the Association : Rule 19(c).

6.   To elect five (5) Council Members : Rules 12(ii), (iii) and 19(b).




By Order Of The Council




George Lee
Chairman




02 May 2008




Singapore Investment Banking Association Annual Report 2007                                       1
chAirMAN’s rEviEw

                                              2007        was an interesting year with tremendous
                                              activity in singapore. The property and stock market
                                              was buoyant. volume of transactions hit new highs and
                                              record prices were set in both markets amidst volatility
                                              when the us sub-prime mortgage issues surfaces. Debt
                                              capital markets were affected negatively by this event
                                              but spreads have since recovered a little although market
                                              is still uncertain if this is fully blown over.
    Mr. George Lee
    Chairman

    Amidst	record	trading	volumes	for	2007,	the	Corporate	Finance	front	faces	a	challenging	year	with	IPO	offerings	of	PRC	companies	
    on	SGX	slowing	down	this	year	due	to	the	regulations	introduced	last	year	by	the	Chinese	Securities	Regulatory	Commission,	to	limit	
    the	number	of	Chinese	companies	that	could	list	offshore.	Nevertheless,	the	foreign	component	in	Singapore	is	still	high	as	about	
    one	third	of	those	listed	are	foreign	owned.	REITs	and	business	trusts	continue	to	be	big	fund	raisers	in	Singapore.	Our	Malaysian	
    counterparts,	namely	Bursa,	Securities	Commission	and	MIBA,	held	a	luncheon	talk	in	Singapore,	on	Listing	on	Bursa	to	promote	
    Malaysia	as	a	gateway	to	the	Middle	East,	amongst	others.	The	dialogue	between	ICPAS	and	SIBA	on	the	issuance	of	the	comfort	
    letter	to	facilitate	and	promote	international	offerings	and	listing	in	Singapore	is	reaching	its	final	stages.		The	final	version	of	the	
    update	on	the	Guidelines	for	Due	Diligence	for	IPO	offering	in	Singapore	has	been	completed	and	sent	to		MAS	for	their	comments.	
    This	seeks	to	give	guidance	on	the	broad	principles	which	issue	managers	should	take	into	consideration	when	conducting	their	due	
    diligence.	In	addition,	SIBA	provided	comments	to	SGX	on	3	consultative	papers	issued	in	2007.


    The	Debt	Capital	Market	Committee	(DCMC)	organized	a	seminar	jointly	with	the	International	Capital	Market	Association	(ICMA)	
    with	the	support	of	MAS	in	November	2007	to	promote	best	practices	for	the	Singapore	Debt	Capital	Market.	The	objective	is	to	
    encourage	the	adoption	of	ICMA	style	recommendations	in	Singapore	where	it	is	practical	to	do	so,	to	provide	a	common	platform	
    so	as	to	encourage	further	expansion	of	the	international	investor	base	for	local	issuers	of	debt	and	encouraging	debt	issuance	by	
    foreign	issuers	locally.	DCMC	continues	to	provide	feedback	to	MAS	and	SGX	on	their	proposed	initiatives	and	consultative	papers,	
    covering	topics	ranging	from	providing	incentives	to	further	develop	the	bond	market	to	linkage	with	foreign	exchanges	to	ensure	
    that	Singapore	remains	as	one	of	the	key	financial	hubs	of	Asia.	


    The	 Equity	 Derivative	 and	 Structured	 Products	 Committee	 had	 presented	 their	 recommendations	 of	 the	 taskforce	 to	 MAS	 on	
    initiatives	to	promote	and	innovate	to	keep	up	with	global	trends.	Following	this,	MAS	and	SGX	will	be	following	up	on	some	of	these.	
    To	ensure	that	a	newly	licensed	Training	Representative	has	the	minimum	knowledge	required,	SIBA’s	Retail	Working	Committee	
    assisted	in	working	on	the	draft	of	IBF’s	Module	6	of	the	Capital	Market	Financial	Advisory	Services		examinations.	This	is	expected	
    to	be	completed	in	early	2008.


    As	in	the	past,	an	annual	dialogue	is	held	with	the	Malaysian	Investment	Banking	Association	(MIBA)	as	a	platform	to	update	the	
    events	for	the	year,	exchange	views	on	current	market	issues,	promote	best	practices,	clarify	issues	and	co-operate	with	one	another	
    to	develop	the	corporate	finance	and	debt	capital	markets.	


    The	annual	fixed	income	course,	which	has	been	run	successfully	all	along,	has	reached	its	5th	and	final	year.	The	securitization	
    module	was	of	particular	interest	given	the	US	sub-prime	mortgage	crisis	this	year.	This	course	will	be	replaced	by	the	Financial	
    Industry	Competency	Standards	(FICS)	which	is	an	industry-wide	accreditation	program	to	establish	competency	standard	for	the	
    financial	industry	in	Singapore.	The	program	is	expected	to	be	launched	by	the	1st	Quarter	of	2008.	


    SIBA	continues	to	partner	MAS,	SGX	and	other	associations	to	raise	industry	standards	and	promote	best	practices	here	in	order	to	
    ensure	that	Singapore	remains	a	progressive	and	competitive	international	financial	centre	for	investment	banking.


    I	would	like	to	express	my	appreciation	to	all	Council	Members,	chairpersons	and	members	of	our	standing	committees,	taskforces,	
    working	groups	and	seminar	presenters	and	panelists	for	giving	so	much	of	their	time	and	efforts	to	promote	the	interests	of	the	
    investment	banking	industry.	As	Chairman	of	the	Association,	I	continue	to	urge	more	member	banks	to	volunteer	their	services	to	
    join	us	in	our	activities	and	support	us	in	our	initiatives.




2                                                            Singapore Investment Banking Association Annual Report 2007
                                                                                    ThE couNcil

   council Members




       From Left: Mr Bill Foo, Mr Ronald Ong, Mr Sim Buck Khim (Treasurer), Mr George Lee (Chairman), Ms Elsie Choo
       (Executive Secretary), Mr Kan Shik Lum, Mr Quek Suan Kiat & Mr Tan Kee Phong




                          Council Members (2007/2008)              Represented by:
                                                 OCBC Bank         Mr George Lee
                                                                   (Chairman)
                                         Deutsche Bank AG          Mr Sim Buck Khim
                                                                   (Deputy Chairman/Treasurer)
                                     ANZ Singapore Limited         Mr Bill Foo
                                                                   Ms Ana Dhoraisingam
                                          Barclays Bank Plc        Mr Quek Suan Kiat
                                                                   Mr Andrew Loh
            Citicorp Investment Bank (Singapore) Limited           Ms Cynthia Teong (retired November 2007)
                                                                   Mr Tan Kee Phong
                                                Credit Suisse      Mr Edwin Low
                                                                   Mr Ray McGregor
                                                   DBS Bank        Mr Kan Shik Lum

                 Morgan Stanley Asia (Singapore) Private           Mr Ronald Ong
                                                                   Mr Rohit Sipahimalani




Singapore Investment Banking Association Annual Report 2007                                                           3
MEMbErship
      report of the council


On	behalf	of	Council,	the	Chairman	is	pleased	to	present	to	members	this	Report	on	the	activities	of	the	Association	during	its	term	of	office	
following	the	election	at	the	Thirty-Second	Annual	General	Meeting	(“AGM”)	held	on	21	May	2007	together	with	the	audited	accounts	for	
the	year	ended	31	December	2007.


COUNCIL MEMBERS FOR 2007/2008

Three	(3)	Council	members	were	elected	to	serve	a	new	two-year	term	(2007/2009)	at	the	Thirty-Second	AGM.		They	were:


1.	 ANZ	Singapore	Limited
2.	 Deutsche	Bank	AG
3.	 OCBC	Bank


The	following	Council	members	remained	to	serve	the	second	year	of	their	two-year	term	(2006/2008).		They	were:


1.	   Barclays	Bank	Plc
2.	   Citicorp	Investment	Bank	(Singapore)	Limited
3.	   Credit	Suisse
4.	   DBS	Bank
5.	   Morgan	Stanley	Asia	(Singapore)	Private



The	new	Council	met	immediately	after	the	Annual	General	Meeting	for	the	purpose	of	electing	the	new	Chairman	and	Deputy	Chairman/
Treasurer	Banks.		OCBC	Bank	was	re-elected	as	Chairman	Bank	and	Deutsche	Bank	was	re-elected	as	Deputy	Chairman/Treasurer	Bank	
respectively	for	2007/2008.



MEMBERSHIP
As	at	1	January	2007,	SIBA	had	45	members.		Since	then	2	new	members	joined,	resulting	in	a	membership	strength	of	47	as	at	31	
December	2007.


New Members in 2007
1.	 BSI	Bank
2.	 Phillip	Securities	Pte	Ltd



COUNCIL MEETINGS
Council	meetings	were	held	on	an	ad	hoc	basis,	as	and	when	necessary.




4                                                              Singapore Investment Banking Association Annual Report 2007
                              sTANDiNG coMMiTTEEs 2007/2008


                       STANDING COMMITTEE FOR CORPORATE FINANCE (CF)
                                Member Bank  Represented by:
                                       PrimePartners     Mr Gerald Ong ( Chairperson)
                                                         Mr Mark Liew
                                                 ANZ     Mr Loh H Chia
                                         BNP Paribas     Mr Soh Ee Beng
                                                 DBS     Mr Lak Yau Huang
                                    Deloitte & Touche    Mr Jeff Pirie
                                           HL Finance    Mr Ong Soon Teik
                                           JP Morgan     Ms Ivy Yong
                                                OCBC     Ms Tsai Ai Liang
                                                         Ms Ang Suat Ching
                                   Platinum Securities   Ms Florence Chan
                                              PwCCF      Mr Benjamin Kan
                                                         Ms Ng Jiak See
                                           SAC Capital   Ms Ong Hwee Li
                                       SBI E2-Capital    Ms Loh Peck Kuan
                                     Stirling Coleman    Ms Lucy Lim
                                          Stone Forest   Mr Tay Woon Teck
                                                  UBS    Mr Jeffrey Wong
                                             UOB Asia    Mr Chan Heng Toong
                                                         Ms Joan Ling
                                           Westcomb      Mr Tan Meng Shern
                                                         Mr Loo Chin Keong




           Corporate Finance Sub-Committees              Represented by:
                                             Training
                                        Primepartners    Mr Gerald Ong
                                            UOB Asia     Mr Chan Heng Toong

                               SFA/other Regulations
                                                DBS      Mr Lum Moe Tchun
                                              OCBC       Ms Tsai Ai Liang

                    Due Diligence Guidelines for IPOs
                                      Working Group
                                                  DBS    Ms Low Pek Li
                                           JP Morgan     Ms Ivy Yong
                                         Stone Forest    Ms Celine Ooi
                                                  UBS    Mr Jeffrey Wong
                                            UOB Asia     Mr Chan Heng Toong

                                       By Invitation:
                                       Stamford Law      Mr Ng Joo Khin
                                    Wong Partnership     Mr Chua Koh Peng
                                                         Mr Raymond Tong
                          IcPAS-SIBA Working Group
                                                DBS      Ms Cheah Le Sa
                                         JP Morgan       Ms Ivy Yong
                                       Merrill Lynch     Mr Matt Slater
                                                UBS      Mr Jeffrey Wong
                                          UOB Asia       Mr Low Han Keat

                                        By Invitation:
                                        Stamford Law     Mr Ng Joo Khin




Singapore Investment Banking Association Annual Report 2007                             5
sTANDiNG coMMiTTEEs 2007/2008
      STANDING COMMITTEE FOR DEBT CAPITAL MARkETS (DCM)
                        Member Bank          Represented by:
                                Citigroup    Mr Tan Kee Phong ( Chairperson)

                                 Barclays    Mr Jitendra Kamdar
            Bank of Tokyo-Mitsubishi UFJ     Mr Colin Chen
                                     BNP     Mr Ranju Parambi
                                             Mr Mark Adams

                                     DBS     Mr Lum Moe Tchun
                                             Mr Tan Chek Soon

                                Deutsche     Mr Sim Buck Khim
                          Goldman Sachs      Mr Martin Cher
                                             Mr Nigel How

                              JP Morgan      Ms Ivy Yong
                                   HSBC      Mr Pius Chong
                                             Ms Ana Dhoraisingam

                                   OCBC      Ms Tan Lay Hoon
                      Standard Chartered     Mr Kenneth Yeoh
                                             Mr Ben Bowden

                                     UOB     Ms Quah Sy Yi
                            By Invitation:

                                     MAS     Ms Tay Bee Bee
                                             Ms Esther Wee




              DCM Sub-Committees             Represented by:
                      Investor Education
                                    DBS      Mr Lum Moe Tchun
                      Standard Chartered     Mr Kenneth Yeoh
                                    UOB      Ms Quah Sy Yi
              New Product Development
                                 Citigroup   Mr Tan Kee Phong
                                Deutsche     Mr Sim Buck Khim
                                    OCBC     Ms Tan Lay Hoon
                       Standard Chartered    Mr Kenneth Yeoh
                     Asset Securitisation
             Bank of Tokyo-Mitsubishi UFJ    Mr Colin Chen
                                      BNP    Mr Ranju Parambi
                                 Citigroup   Mr Sanjay Aggarwal
                                      DBS    Mr Ong Siow Wei
                                     HSBC    Mr Andew Duncan
                            Best Practice
                                 Citigroup   Mr Tan Kee Phong
                                      DBS    Mr Lum Moe Tchun
                                     HSBC    Mr Pius Chong/Ms Ana Dhoraisingam
                               JP Morgan     Ms Ivy Yong
                       Standard Chartered    Mr Kenneth Yeoh
                                             Mr Ben Bowden
                           By Invitation:
                          Allen & Gledhill   Ms Margaret Chin
                        Wong Partnership     Mr Hui Choon Yuen




6                                 Singapore Investment Banking Association Annual Report 2007
                             sTANDiNG coMMiTTEEs 2007/2008
                        STANDING COMMITTEE FOR EqUITy DERIvATIvES &
                               STRUCTURED PRODUCTS (EDSP)
                                   Member Bank           Represented by:
                                                 UBS     Mr Rohit Jaisingh (Chairperson)
                                    OCBC Securities      Mr T K Yap

                                               OCBC      Mr Samuel Lin
                                            Barclays     Mr Tan Yong Sheng
                                                         Mr Alex Lee

                                       Credit Suisse     Mr Ray McGregor
                                                         Mr Desmond Koh

                                           Deutsche      Mr Vinod Aachi

                                Macquarie Securities     Mr Justin Crawford
                                                         Mr Harry Krkalo

                                        Merrill Lynch    Mr Mark Bowden

                                    Phillip Securities   Mr Lim Wah Tong

                                   Societe Generale      Mr Malcolm Thomas

                                       By Invitation:

                                                IMAS     Mr Giri Mudeliar

                                                MAS      Ms Jean Tan

                                                SIAS     Mr Christopher Cheong

                                                 SGX     Ms Sabrina Lee




Singapore Investment Banking Association Annual Report 2007                                7
sTANDiNG coMMiTTEEs 2007/2008
    Equity Derivatives & structured products (EDsp)

                               EDSP Sub-Committees             Represented by:
                                       Investor Education:
                                          OCBC Securities      Mr T K Yap ( Chairperson)
                                                               Mr Elgin Ting
                                      Macquarie Securities     Mr Justin Crawford
                                                               Mr Barnaby Matthews
                                              Merrill Lynch    Mr Wong Kok Fai
                                          Phillip Securities   Mr Lim Wah Tong
                                          Societe Generale     Mr Ooi Lid Seng
                                             By Invitation:
                                                      MAS      Ms Jean Tan
                                                       SGX     Mr Andrew Liew
                                                               Ms Carin Looi
                                            Share Investor     Mr Christopher Lee
                                                               Ms Linda Lee
                                                      SIAS     Mr Christopher Cheong
           Education: capital Markets & Financial Advisory
                                  Services Working Group
                                          OCBC Securities      Mr T K Yap ( Chairperson)
                                                               Mr Elgin Ting
                                             Phillip Capital   Mr Loh Hoon Sun
                                          Societe Generale     Mr Malcolm Thomas
                                             By Invitation:
                                                               Mr Joseph Lim, PhD, CFA
                                                        IBF    Ms Rachie Hui
                                                      MAS      Ms Jean Tan
                                                       SGX     Ms Sabrina Lee
                                                      SIAS     Mr Christopher Cheong
                                              Institutional
                                             Credit Suisse     Mr Ray McGregor
                                                               Mr Desmond Koh
                                              Merrill Lynch    Mr Mark Bowden
                                                     OCBC      Mr Samuel Lin
                                                       UBS     Mr Rohit Jaisingh
                                                     Retail
                                                  Barclays     Mr Tan Yong Sheng
                                                               Mr Alex Lee
                                      Macquarie Securities     Mr Justin Crawford
                                          OCBC Securities      Mr T K Yap
                                          Societe Generale     Mr Malcolm Thomas




8                                              Singapore Investment Banking Association Annual Report 2007
                                                     rEporT oN ThE AcTiviTiEs
                                                          oF ThE coMMiTTEEs
                                                                                               corporate Finance


New Chairperson
Mr	Tan	Jeh	Wuan	of	DBS	Bank	Ltd		stepped	down	as	Chairperson	of	the	committee.	SIBA	welcomed	Mr	Gerald	Ong	of	PrimePartners	
Corporate	Finance	Pte	Ltd	as	the	new	Chairperson	in	March	2007.




CF Committee members from both SIBA & MIBA

The	annual	meeting	of	corporate	finance	professionals	from	Singapore	and	Malaysia	was	hosted	by	MIBA	at	Shangrila,	Kuala	Lumpur	in	
September	2007.	The	SIBA	dialogue	was	chaired	by	Mr	Gerald	Ong	of	PrimePartners	and	Ms	Pushpa	Rajadurai	of	AmInvestment	Bank	
chaired	the	MIBA	dialogue.




Singapore Investment Banking Association Annual Report 2007                                                                     9
rEporT oN ThE AcTiviTiEs
oF ThE coMMiTTEEs
     corporate Finance

An	update	of	the	events	for	the	year	was	provided	by	both	chairpersons	with	MIBA	informing	that	their	members	are	looking	forward	
to	tax	breaks	in	the	Malaysian	budget.	SIBA	touched	on	the	tremendous	activity	on	SGX	both	in	terms	of	trading	and	listings	with	the	
trend	towards	secondary	fund	raising	rather	than	primary	fund	raising	as	evidenced	by	the	secondary	round	of	placements	for	REITS	
and	business	trusts	which	continue	to	be	big	fund	raisers	in	Singapore.	There	is	also	increasing	focus	by	SGX	on	derivative	trading	and	
SGX	has	been	named	the	exchange	of	the	year	by	the	Energy	Risk	Magazine.	The	regulators	like	SGX	and	MAS	has	been	increasingly	
consultative	and	the	review	of	the	New	Board	initiatives	is	part	of	this	consultation,	in	response	to	competition	from	other	exchanges.	


It	was	a	useful	update	of	market	trends,	regulations	and	best	practices	in	the	respective	markets	and	a	constructive	exchange	of	views	on	
the	various	issues	sought	by	both	parties.	MIBA	touched	on	the	wide	range	of	topics	raised	by	SIBA,	covering	REITS	and	Business	Trusts,	
Cross	Border	Listing,	Tapping	the	offshore	markets	and	Regulations.	Some	of	the	issues	raised	are:


•	 How	could	we	work	better	with	MIBA	to	facilitate	cross	border	listing?
•	 How	do	we	encourage	secondary	listing	of	Malaysian	REITS	on	SGX	and	vice	versa?
•	 What	is	the	process	and	regulatory	hurdles	for	Malaysian	companies	to	seek	listing	in	Singapore?
•	 Other	than	REITS,	Business	Trusts	(transportation	&	infrastructure	assets)	have	also	begun	to	take	off	in	Singapore.	Are	there	similar	
structures	in	Malaysia?
•	 Collective	investment	schemes	from	Singapore	cannot	be	offered	to	investors	in	Malaysia.	Are	REITS	and	Business	Trusts	also	under	
the	same	restrictions?
•	 As	companies	expand	beyond	Malaysia,	how	do	they	then	tap	the	offshore	capital	markets?
•	 The	current	regulatory	scene	in	Singapore	touches	on	due	diligence	and	comfort	letters	for	public	offerings	of	equities.	Are	there	similar	
regulatory	trends	in	Malaysia?
•	 There	 are	 proposed	 changes	 in	 Singapore	 on	 a	 new	 board	 and	 introduction	 of	 a	 watch	 list.	 Will	 Malaysia	 be	 introducing	 a	 third	
board?
•	 Is	it	market	practice	in	Malaysia	for	legal	counsels	in	a	capital	market	transaction	to	issue	disclosure	and	enforceability	opinions?


MIBA	raised	topics	ranging	from	Business	Trusts,	Mergers	and	acquisitions,	and	IPOs	on	SGX	which	were	clarified	and	elaborated	on	by	
SIBA.	Some	of	the	issues	raised	are:	


What	are	the	eligibility	criteria	to	act	as	sponsor	and	the	expected	roll	out	date	for	the	new	board?
•	 Business	trusts	are	becoming	popular	among	the	new	IPO	trends.	What	is	driving	the	interests	and	is	there	a	significant	upside	on	
valuations?
•	 Are	there	new	merger	and	acquisition	themes	and	which	are	the	sectors	focused	on?
•	 With	the	halt	in	Chinese	listings	on	SGX,	what	are	the	steps	taken	by	SGX,	if	any,	to	fill	this	vacuum?	
•	 Malaysia	would	be	adopting	the	same	practice	on	public	exposure	of	prospectus	when	the	Capital	Market	Services	Act	becomes	
effective	in	September	07.	What	are	Singapore’s	experiences	since	Singapore	has	started	these	practices	quite	some	time	ago?




CF dialogue in session




10                                                                Singapore Investment Banking Association Annual Report 2007
                                                              rEporT oN ThE AcTiviTiEs
                                                                   oF ThE coMMiTTEEs
                                                                                                                corporate Finance

Due Diligence Guidelines for Initial Public Offerings (IPOs)
The	Guidelines	for	Due	Diligence	for	IPO	Offering	in	Singapore	launched	in	August	2004	and	a	working	group,	with	the	assistance	and	
advice	of	Stamford	Law	Corporation,	was	formed	in	October	2006	to	update	this.	The	final	version	was	finalised	in	October	2007	and	a	
copy	has	been	sent	to	MAS	pending	their	comments.


The	Due	Diligence	Guidelines	seek	to	give	guidance	on	the	broad	principles	which	issue	managers	should	take	into	consideration	when	
conducting	 their	 due	 diligence.	 An	 issue	 manager	 should	 continually	 visit	 and	 revisit	 what	 inquiries	 and	 checks	 are	 reasonable	 in	 the	
context	of	a	particular	transaction.	


The Due Diligence Guidelines are structured in three inter-related sections:
•	 General Principles	 -	 this	 section	 sets	 out	 the	 broad	 principles	 on	 which	 a	 due	 diligence	 process	 should	 be	 conducted.	 The	 Due	
Diligence	Guidelines	identify	general	principles	covering	the	following	four	areas:	(1)	a	structured	and	documented	process;	(2)	checks	and	
verifications;	(3)	overall	control	of	the	due	diligence	process;	and	(4)	the	appointment	of	and	reliance	on	advisers	and	experts.	


•	 Recommended Procedures -	this	section	sets	out	the	inquiries	which	issue	managers	would	normally	carry	out	in	a	typical	IPO.	In	the	
course	of	carrying	out	such	inquiries,	issue	managers	must	consider	carefully	whether	other	inquiries	should	be	made	to	ensure	accurate	
and	full	disclosure	in	the	prospectus.


•	 Guidance Notes	-	this	section	sets	out,	in	the	form	of	case	studies,	some	guidelines	on	a	set	of	appropriate	measures	that	should	be	
considered	in	certain	situations.	While	these	guidelines	are	non-exhaustive,	they	are	aimed	at	providing	further	guidance	to	issue	managers	
on	how	the	General	Principles	are	intended	to	work	in	practice.


In	addition	to	the	guidance	provided	herein,	SIBA	expects	to	issue	practice	notes	from	time	to	time	to	address	issues	and	concerns	which	
are	of	interest	to	the	corporate	finance	industry	as	a	whole.


Issue of IPO comfort letters
An	exposure	draft	of	the	Audit	Guidance	Statement	(AGS)	on	the	issuance	of	comfort	letters	for	Singapore	IPO	offerings	was	circulated	by	
the	Institute	of	Certified	Public	Accountants	of	Singapore	(ICPAS)	in	2004.	Reporting	auditors	in	performing	and	reporting	on	the	results	of	
engagements,	have	to	issue	comfort	letters	for	Sponsors,	Issuer	Managers	and	Underwriters	in	connection	with	the	financial	information	
contained	in	the	Public	Offering	Documents	lodged	with	the	Monetary	Authority	of	Singapore	under	the	Securities	Futures	Act.


This	drew	strong	objections	from	the	corporate	finance	industry	and	a	taskforce	was	formed	by	ICPAS	to	work	on	the	revised	exposure	
draft.	Several	meetings	with	representatives	from	ICPAS	and	the	SIBA	working	group	has	been	held	this	year	to	finalize	the	draft.	


The 2 main points of contention were on:


The issuance of a liability cap
SIBA	is	of	the	view	that	it	is	not	customary	to	for	a	liability	cap	vis-à-vis	the	sponsor	managers.		This	is	in	line	with	current	market	practice	
and	international	market	practice	given	that	underwriters	are	“gate-keepers”	in	ensuring	appropriate	due	diligence	is	done	in	connection	
with	equity	offerings.		However,	ICPAS	reiterated	that	unlike	audit	procedures	in	a	statutory	audit,	work	carried	out	by	the	reporting	auditors	
is	an	agreed-upon	procedures	engagement.	Besides,	there	is	no	statutory	requirement	for	the	issuance	of	a	comfort	letter.	


Relying on information and documents where it is reasonable to do so
ICPAS	would	like	to	be	entitled	to	rely	upon	all	documents	and	information	provided	by	the	issuer	and	reply	on	their	advice	and	information	
provided	by	the	Issuer.	However,	SIBA	maintains	its	view	that	if	the	auditors	are	relying	on	all	documents	and	information	provided	by	the	
Issuer,	such	reliance	must	be	reasonably	exercised.	Hence	SIBA	would	like	the	inclusion	of	the	phrase,”	Where	it	is	reasonable	to	do	so”.	
However	ICPAS	indicated	that	the	word	“reasonable”	would	be	subject	to	interpretation	and	is	not	acceptable.	As	both	could	not	reach	
a	compromise,	SIBA	suggested	that	this	paragraph	be	deleted	altogether	as	there	is	another	paragraph	in	the	AGS	which	states	that	
auditors	are	not	liable,	other	than	in	the	event	of	bad	faith	or	willful	default	arising	from	information	material	to	their	work	being	withheld	or	
misrepresented	by	the	issuer.


The	 AGS	 draft	 is	 still	 being	 finalized	 but	 both	 parties	 agreed	 that	 the	 seriousness	 of	 the	 disagreement	 on	 both	 the	 above	 points	 of	
contention	has	to	be	brought	to	the	attention	of	MAS.	The	final	document	is	expected	to	be	completed	sometime	in	2008.




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     corporate Finance


SGX Consultative Papers
SIBA	provided	comments	to	SGX	on	the	following	3	consultative	papers	which	they	issued	in	2007:
1.	 Trading	Halt,	Suspension	and	Cash	Companies	
2.	 Proposed	Introduction	for	a	Watch-list	and	Listing	Rule	Amendment	Relating	to	Exit	Offer	in	a	Directed	Delisting	
3.	 Listing	Manual	Rules	for	the	New	Board	


Luncheon Talk on Foreign Listing on Bursa
The	luncheon	talk	held	at	the	OCBC	Executive	Club	on	2	November	2007	was	held	at	the	request	of	Mr	Arulnathan	Dass,	Head	of	Issuer	
Development,	from	Bursa	Malaysia	Berhad.	It	was	attended	by	members	from	the	corporate	finance	industry	in	Singapore.	Mr	Gerald	Ong,	
Chairman	of	CF	Committee	gave	the	opening	address	touching	on	institutional	investors	looking	for	higher	yields	in	a	global	environment	
with	55	Chinese	companies	listed	on	Alternative	Investment	Market	(AIM)	of	London	and	46	Chinese	companies	listed	on	NASDAQ.	


Mr	Arul	Dass	covered	topics	like	the	range	of	exchange-related	products	(equities,	derivatives	and	offshore	market	like	Islamic	Sukuk	cross	
listings)	and	informed	that	Malaysia	is	an	access	to	Middle	East	Liquidity.	Mr	Encik	Reizal	Mustapha	from	the	Securities	Commission	covered	
topics	including	the	listing	process,	domestic	(mainboard,	secondboard	or	MESDAQ)	and	foreign	listings	(	mainboard	or	MESDAQ)	and	
the	National	Development	Policy	(NDP)	Position	with	regards	minimum	30%	bumiputra	requirement.	Ms	Puspha	Rajadurai,	Chairperson	of	
CF	Committee	of	MIBA	and	Executive	Director	of	AmInvestment	Bank	Berhad	touched	on	topics	including	the	routes	of	listing	in	Malaysia,	
IPO	Key	success	factors,	the	principal	advisor’s	role	in	an	IPO	and	regulatory	approvals.	The	panel	discussion	was	lively	with	questions	
like	the	2	tier	pricing	on	IPO	for	institutional	tranche	for	foreign	investors	and	that	for	the	retail	and	bumiputras.	Ms	Puspha	explained	the	
market	aspects	of	the	pricing	and	informed	that	although	the	discount	was	up	to	10%	initially,	now	it	is	down	to	2-3%.		Overall,	the	talk	
was	useful	to	provide	a	better	understanding	of	Malaysia’s	listing	requirements	on	Bursa.




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                                                                                        Debt capital Markets

DEBT CAPITAL MARKETS (DCM)


New Chairperson
Mr	Pius	Chong	of	HSBC	stepped	down	as	Chairperson	of	the	committee.	SIBA	welcomed	Mr	Tan	Kee	Phong	of	Citigroup	as	the	new	
Chairperson	in	July	2007.


SIBA/MIBA dialogue




DCM Committee members from both SIBA & MIBA

The	annual	meeting	of	debt	capital	market	professionals	from	Singapore	and	Malaysia	was	hosted	by	MIBA	at	Shangrila,	Kuala	Lumpur	
in	September	2007.	The	SIBA	dialogue	was	chaired	by	Mr	Tan	Kee	Phong	of	Citigroup	and	Mr	Thomas	Meow	of	CIMB	Investment	Bank	
chaired	the	MIBA	dialogue.




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     Debt capital Markets


SIBA - MIBA Dialogue




DCM dialogue in session




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                                                                                                       Debt capital Markets


SIBA - MIBA Dialogue


Debt	capital	market	professionals	discussed	the	impact	of	the	sub-prime	mortgage	crisis	on	both	the	Malaysian	and	Singapore	markets	
and	proceeded	to	a	lively	exchange	on	various	topics	raised	by	both	parties.	Some	of	the	issues	raised	by	SIBA	are:


•	 With	the	growth	in	Islamic	finance	in	the	market,	Islamic	bond	issuance	has	seen	considerable	growth.	There	seems	to	be	a	lack	of	
trading	of	such	bonds.	What	measures	have	been	taken	to	address	this?	Are	there	any	plans	to	expand	Islamic	funding	to	other	areas	of	
banking	and	finance?
•	 Current	 issues	 like	 readability	 of	 prospectus,	 adoption	 of	 ICMA	 practices	 are	 being	 discussed	 in	 Singapore.	 What	 are	 the	 current	
issues	being	discussed	in	Malaysia?
•	 How	does	Malaysia	price	their	long	dated	project	finance	bonds?	What		is	the	view	of	the	method	of	pricing	from	the	perspective	of	
the	market,	issuers	and	practitioners?
•	 How	is	the	Malaysian	market	developing	in	the	area	of	structured	and	convertible	bonds?	What	are	the	types	of	structured	bonds	
issued?	Going	forward,	would	the	market	develop	further	and	what	new	products	can	be	expected?


Issues raised by MIBA include the following:
•	 Is	there	a	set	of	industry	code	of	conduct	for	the	primary	bond	markets	in	Singapore?	Are		the	banks	adopting	or	practicing	the	IPMA	
rules?
•	 Are	there	rules	in	relation	to	over-allocation	and	green	shoe	option?
•	 Is	there	a	minimum	fee	arrangement	among	SIBA	members?
•	 Is	there	any	requirement	to	post	trust	deed,	term	sheets	or	offering	circular	on	the	regulator’s	website?	


It	 was	 a	 meaningful	 dialogue	 with	 an	 update	 of	 events,	 regulations	 and	 market	 trends	 and	 the	 exchange	 of	 views	 on	 various	 issues	
including	 Islamic	 funding,	 long	 dated	 project	 finance	 bonds,	 structured	 bonds	 and	 best	 practices	 in	 the	 area	 of	 over-allocation	 and	
greenshoe	option	and	book	building	for	primary	issues.	The	dialogue	culminated	in	a	lunch	with	the	participation	of	both	the	Debt	Capital	
Market	and	Corporate	Finance	professionals	from	SIBA	and	MIBA.	


SIBA-SMU Course


Fixed Income Markets ( 12 week course)
This	is	the	5th	year	in	which	the	annual	fixed	income	markets	course	held	jointly	by	SIBA	with	Singapore	Management	University	(SMU)	
has	been	running	successfully.	The	course	comprises	of	3	modules	and	starts	from	16	August	2007.	It	provides	participants	with	a	good	
coverage	of	fixed	income	aspects	including	structured	notes	and	convertible	bonds,	especially	in	the	light	of	increased	volatility	of	interest	
rates,	increased	credit	risks	associated	with	fixed	income	products	and	derivatives	which	have	sparked	tremendous	development	of	new	
pricing	tools	and	trading	strategies	as	well	as	risk	models.	With	the	US	sub-prime	mortgage	crisis,	the	course	was	particularly	useful	in	
the	areas	of	credit	derivatives,	and	securitization.	Participants	get	to	learn	from	both	the	academia	and	practicing	bankers	as	well	as	
experience	hands-on	mock	cash	market	and	derivatives	trading.	


SIBA	members	were	on	some	of	the	panel	discussions	and	were	course	instructors	for	some	modules.	Appreciation	goes	to	the	following	
SIBA	members	who	kindly	volunteered	to	be	on	the	panel	or	were	course	instructors:


Panel	
Mr	Tan	Kee	Phong	(Citigroup)	and		Mr	Kenneth	Yeoh	(SCB)	for	Module	I	and	Mr	James	Khoo	(OCBC)	and	Mr	Imran	Faizal	Khan	(UOB)	
for	Module	III


Course instructors
Mr	Rodney	Lim	(DBS)		and	Mr	Efraim	Goldberg	(DBS)	and	Mr	Christopher	Chan		(BNP	Paribas)	for	Module	II.	


With	the	focus	on	the	Financial	Industry	Competency	Standards	(FICS)	accredited	training	and	assessment	programs	which	is	expected	
to	launch	in	2008,	this	will	be	the	final	year	for	the	fixed	income	course.




Singapore Investment Banking Association Annual Report 2007                                                                                      15
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     Debt capital Markets




Mr	Kola	Luu,	Executive	Director,	Financial	Markets	Strategy,	MAS	          Mr	Tan	Kee	Phong,	Chairman	of	Debt	Capital	Markets	Committee	
addressing	the	audience                                                    addressing	the	audience


SIBA-ICMA Seminar
This	seminar,	to	promote	best	practices	for	the	Singapore	Debt	Capital	Market,	was	organized	by	SIBA	and	the	International	Capital	
Market	Association	(ICMA)	with	the	support	of	MAS.	It	was	held	on	24	October	2007	at	the	Auditorium	of	Allen	&	Gledhill	LLP.	


The	 Singapore	 corporate	 debt	 market	 continued	 to	 grow	 healthily,	 driven	 by	 strong	 demand	 for	 fixed	 income	 assets.	 As	 the	 market	
develops,	there	is	an	increasing	trend	in	SGD	denominated	debt	issuance	by	foreign	issuers	and	of	local	issuers	tapping	the	international	
market	for	funds.	The	investor	base,	both	locally	and	internationally,	continues	to	expand	for	such	debt	issuance.	Thus	there	is	a	need	to	
align	the	local	market	practice	more	closely	with	the	international	practice.	To	achieve	this,	the	seminar	is	held	to	encourage	the	adoption	
of	ICMA	style	recommendations	in	Singapore,	where	it	is	practical	to	do	so.	This	should	further	develop	the	depth	and	width	of	the	debt	
capital	market	both	in	terms	of	expanding	the	international	investor	base	for	local	issuers	of	debt	and	encouraging	debt	issuance	by	
foreign	issuers	locally.


Our	chairperson	of	DCM	Committee	Mr	Tan	Kee	Phong	welcomed	participants	to	the	seminar	and	Mr	Kola	Luu,	MAS	gave	the	opening	
address	and	covered	on	the	topic,	The	Singapore	Experience.	Presenters	from	ICMA,	Mr	Jean-Pierre	Wellens,	Mr	Chris	O’Malley	and	
Mr	Ondrej	Petr	covered	topics	on	The	European	Experience,	IPMA	and	ISMA	handbooks	and	IPMA	Standard	Forms	and	Best	Practice	
respectively.	Ms	Margaret	Chin	from	Allen	&	Gledhill	LLP	touched	on	The	Current	New	Issue	Practice	in	Singapore.	There	was	a	panel	
discussion	on	“The	case	for	introducing	IPMA	recommendations	and	IPMA	standard	documentation.”		On	the	panel	were	Ms	Tan	Lay	
Hoon	from	OCBC,	Mr	Karl	Chong	from	DBS,	Mr	Ben	Bowden	from	SCB,	Mr	Charles	Loh	from	UOB,	Ms	Margaret	Chin	from	A&G	LLP,	
Mr	Hui	Choon	Yuen	from	WongPartnership	and	Mr	Chris	O’Malley	and	Mr	Ondrej	Petr,	both	from	ICMA.	The	seminar	was	attended	by	
professionals	from	the	industry,	including	MAS,	financial	institutions,	law	firms,	issuers	of	debt	from	statutory	boards,	government	linked	
companies,	listed	companies	and	corporations.	Allen	&	Gledhill	LLP	kindly	sponsored	the	event.




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                                                                                                  Debt capital Markets


SIBA - ICMA Seminar




From	Left:		Mr	Chris	O’Malley,	Mr	Kola	Luu,	Mr	Jean-Pierre	Wellens,	   Presenters	and	Panelists
Mr	Tan	Kee	Phong	&	Mr	George	Lee




Attendees	at	the	seminar                                               ICMA’s	presentation	to	the	attendees




Delegates	from	ICMA                                                    3	delegates	from	ICMA	giving	their	presentation




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     Debt capital Markets


Dialogue Sessions with MAS
Several	 meetings	 were	 held	 with	 MAS	 to	 discuss	 and	 provide	 feedback	 on	 their	 proposed	 policies	 and	 initiatives	 on	 the	 debt	 capital	
markets.
•	 Qualifying	Debt	Securities	(QDS)
	 MAS	requested	for	feedback	on	the	Financial	Sector	Incentive-Bond	Market	and	QDS	scheme	which	ends	in	December	2008.	They	
are	currently	reviewing	these	schemes	to	evaluate	the	effectiveness	of	the	schemes	for	bond	market	development.	Consolidated	feedback	
from	SIBA	members	was	given	to	MAS	in	September	2007.		Arising	from	the	request	from	members	to	provide	a	common	platform	to	
facilitate	enquires	by	the	public	on	the	QDS	status	of	an	existing	paper,	MAS	website	has	been	set	up	on	1	September	2007	to	facilitate	
such	enquiries.	Investors	can	access	MAS	website	to	check	the	QDS	status	by	sending	an	email	and	providing	information	required	by	
MAS.	However,	MAS	is	unable	to	confirm	if	the	reply	from	them	will	satisfy	IRA	requirements.	


•	 Inclusion	of	bonds	in	Minimum	Liquid	Assets	(MLA)
	 In	June	2004,	SIBA	submitted	a	letter	to	MAS	proposing	a	review	and	expansion	of	the	current	definition	of	liquid	asset	ratio.	Following	
this,	MAS	issued	a	Consultative	Paper	on	Liquidity	Risk	Supervision	–	A	Revised	Minimum	Liquid	Asset	Framework.	The	New	Product	
Development	Sub-Committee	responded	to	the	Consultative	Paper	in	June	2006.	MAS	released	another	consultation	paper	on	proposed	
changes	to	Minimum	Liquid	Assets	and	Minimum	Cash	Balances	Requirements	for	Banks	on	26	October	2007.	SIBA	provided	feedback	
to	MAS	on	this.	A	full-scale	revamp	is	targeted	for	implementation	in	early	2008	


•	 Establishing	a	bridge	with	CDP	and	Clearstream
	 SIBA	members	discussed	with	representatives	of	Central	Depository	Board	(CDP)	in	a	DCM	meeting	in	September	2007	on	establishing	
a	bridge	with	Euroclear/Clearstream	(EC).	The	objective	is	to	ensure	that	where	bonds	originated	in	Singapore,	it	is	not	an	issue	whether	
they	are	cleared	through	CDP	or	EC.	


Whilst	there	is	an	existing	infrastructure	to	facilitate	cross	settlement	without	a	direct	link,	the	system	is	not	seamless	as	investors	have	
to	advise	CDP	of	his	transactions	as	the	system	does	not	automatically	capture	them.	International	investors	tend	to	resist	signing	new	
documents	if	they	already	have	a	platform	to	issue	debt	as	there	are	additional	costs	involved	whilst	investors	tend	to	avoid	the	hassle	of	
setting	up	nominee	accounts.	CDP	is	of	the	opinion	that	as	it	is	the	individual	investors	who	are	most	affected,	it	may	not	be	cost	effective	
to	establish	this	bridge.	However,	SIBA	members	are	of	the	view	that	this	issue	will	become	quite	transparent	as	the	retail	distribution	
becomes	more	viable.


The	other	issue	that	was	raised	relates	to	the	charges	by	CDP.	It	was	highlighted	to	CDP	that	issuers	may	use	EC	if	it	can	be	demonstrated	
that	it	is	cheaper	to	do	so.	Besides,	some	issuers	have	reverted	back	to	scrip	base	to	avoid	paying	charges	to	CDP	for	interest	payments.	
It	was	noted	that	CDP	is	charging	for	interest	payments	when	EC	does	not	as	CDP	is	still	using	equity	as	a	model	whilst	it	is	serving	a	
different	client	base	where	it	concerns	bond	issues.	The	question	of	CDP	considering	volume	discount,	a	cap	on	charges	for	long	tenures	
and	frequent	issuers	or	charging	by	different	tiers	was	raised.	Upon	the	request	of	CDP,	SIBA	submitted	a	proposal	to	address	their	current	
charges	by	CDP.	




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                                                      coMMiTTEEs
                                                                     Equity Derivatives & structured products


EQUITY	DERIVATIVES	&	STRUCTURED	PRODUCTS	(EDSP)



SGX Website as a common platform for investors
Following	the	presentation	of	the	recommendations	of	the	taskforce	to	the	MAS	last	year,	one	of	the	initiatives	was	to	provide	an	independent	
source	of	information	to	facilitate	investors’	access	to	core	information	and	provide	them	with	tools	to	assist	them	in	their	decision	making.	
SIBA	has	proposed	to	SGX	feedback	to	put	forward	a	proposed	model	on	their	website	to	incorporate	the	following:	


Warrant FAQ Site
The	proposal	is	for	a	platform	administered	by	SGX,	where	investors	can	ask	questions	or	register	their	complaints,	without	having	to	log	
in	to	different	issuers’	websites.	These	questions	are	then	directed	by	SGX	to	one	or	more	of	the	issuers	who	will	provide	their	comments.	
SGX	 can	 then	 obtain	 and	 publish	 the	 issuer’s	 replies	 as	 appropriate.	 This	 allows	 queries	 from	 the	 investing	 public	 to	 be	 shared	 and	
analyzed	and	for	the	weak	areas	of	investor	understanding	to	be	targeted	for	future	education.	In	addition,	SGX	can	monitor	and	supervise	
the	quality	of	warrant	market	making,	as	well	as	address	the	various	issues	raised.	


SGX	informed	that	investors	can	currently	write	in	to	the	webmaster	at	their	website	with	regards	their	queries.	However,	the	web	will	be	
revamped	to	provide	a	list	of	frequently	asked	questions	(FAQ)	from	investors	and	the	corresponding	replies	from	warrants	issuers	to	help	
investors	have	a	better	understanding	of	warrants.	This	is	targeted	for	implementation	by	early	2008.	


Information on warrants
Currently	core	basic	information	is	not	conveniently	available	to	investors.	This	is	an	impediment	to	growth	of	the	warrant	market.	To	ensure	
such	information	is	centralized	and	transparent,	it	was	suggested	that	SGX	website	allows	core	basic	information	to	be	made	easily	to	the	
man	in	the	street	to	allow	them	to	shop	electronically	for	information	at	their	own	time	to	facilitate	trading	decisions:
-		incorporation	of	a	calculator
-		ability	to	hunt	down	information	at	one	stop	eg.	deltas,	conversion	ratios,	exercise	prices	for	all	listed	warrants,	number	of			warrants	
issued	by	the	issuer,	market	share	of	such	issues	and	the	volume	traded	per	warrant.


Such	information	and	content	are	to	be	user	friendly,	accurate	and	up	to	date.	SGX	noted	the	feedback	but	is	of	the	opinion	that	there	may	
be	pricing	differences	as	the	implied	volatility	used	by	each	house	may	be	different.	


Continuing Education
SIBA	also	requested	for	continuing	education	to	be	provided	on	SGX	website.	This	should	include	webcasts	of	seminars	and	posting	of	
flash	and	interactive	educational	presentations.	SGX	will	ensure	that	this	is	an	on	going	process	and	regularly	update	relevant	features	
under	the	“	Investor	Education”	section	of	their	website.	So	far,	the	SGX	website	has	featured	webcasts	of	structured	products	like	the	
Rabojet	Certificates	and	Zero	Participation	Certificates	on	website	as	part	of	their	continuing	effort	to	educate	the	retail	investors.



IBF MODULE 6 – CMFAS EXAMINATION
The	retail	sub-committee,	chaired	by	Mr	TK	Yap	of	OCBC	Securities,	continued	to	work	with	the	Institute	of	Banking	and	Finance	(IBF),	
the	study	guide	writer	appointed	by	IBF	and	industry	practitioners	to	provide	feedback	on	the	depth	and	breadth	of	coverage	and	assist	in	
the	revision	of	the	draft	of	Module	6	of	the	Capital	Markets	and	Financial	Advisory	Services	(CMFAS)	examinations.	This	revised	module	is	
intended	to	lay	down	the	minimum	product	and	analytical	knowledge	required	for	a	newly	licensed	Trading	Representative	(TR)	in	the	area	
of	equity	derivatives	and	structured	products.	IBF	confirmed	that	these	drafts	will	be	incorporated	into	the	new	study	guide	and	expected	
to	be	launched	in	1st	half	of	2008.	




    Singapore Investment Banking Association Annual Report 2007                                                                                             19
RePoRt on
oThEr AcTiviTiEs
     Financial industry competency standards (Fics)


FICS	is	an	industry-wide	accreditation	program,	the	result	of	a	collaborative	effort	by	the	Institute	of	Banking	&	Finance	(IBF),	the	Monetary	
Authority	of	Singapore	(MAS),	the	Workforce	Development	Agency	and	the	financial	services	industry.	It	is	meant	to	provide	a	comprehensive	
and	transparent	set	of	competency	standards	for	the	financial	services	industry	in	Singapore.	The	aim	is	to	raise	the	professional	bar	of	
Singapore’s	financial	workforce	and	develop	a	leading	edge	financial	sector	workforce	to	support	Singapore	as	an	international	financial	
centre.


The	FICS	committee	(comprising	representatives	from	the	industry,	IBF	and	tertiary	institutions)	was	established	about	two	years	ago	to	
work	on	the	accreditation	program.	In	July	2007,	IBF	announced	the	appointment	of	the	5	lead	providers	at	an	event	held	at	the	Amara	
Hotel.	 SIBA	 has	 been	 invited	 by	 one	 of	 the	 lead	 providers,	 Financial	 Training	 Institute	 @	 SMU	 (SMU)	 as	 their	 industry	 partner	 in	 their	
collaterals.	


SMU	is	currently	in	the	midst	of	designing	and	developing	the	FICS	accredited	training	and	assessment	programs	and	targets	to	roll	out	
the	the	programs	for	Corporate	Finance,	followed	by	Debt	Capital	Markets	and	Asset	Securitisation		by	April	2008.	


Our	chairman,	Mr	George	Lee	(OCBC)	had	been	selected	by	IBF	to	join	the	pioneer	cadre	of	Financial	Industry	Certified	Professionals	(FICP).	
The	FICP	title	is	the	highest	certification	mark	for	a	financial	practitioner	in	Singapore	under	the	FICS	framework.		SMU	in	conjunction	with	
IBF,	conducted	the	assessment	through	an	assessor	panel	and	Mr	George	Lee	is	a	certified	FICP	for	Financial	Markets:	Debt	Origination	
and	Syndication	in	October	2007.




20                                                                   Singapore Investment Banking Association Annual Report 2007
                                                                                      RePoRt on otHeR
                                                                                            AcTiviTiEs
                                                         Taskforce To review readability of prospectus

                            TASkFORCE TO REvIEW READABILITy OF PROSPECTUS
                                   Taskforce Members Represented by:
                                                Macquarie Securities          Mr Low Whye Choong (Chairperson)
                   APREA (Asian Public Real Estate Association)               Mr Peter Mitchell
                                                                    DBS       Ms Cheah Le Sa
                                                                              Ms Valerie Lim
                                                      IMAS                    Mr Giri Mudeliar
           (Investment Management Association of Singapore)
                                          Societe Generale                    Mr Malcolm Thomas
                                                                    UBS       Mr Rohit Jaisingh
                                                              UOB Asia        Ms Quah Sy Yi
                                              Allens Arthur Robinson          Mr Tim Manefield
                                                                              Mr Robert Clarke
                                                  Colin Ng & Partners         Ms Elaine Beh
                                                  MAS (Co-ordinator)          Mr Richard Teng
                                                                              Ms Abigail Ng
                                                                              Ms Angeline Koh
                                                                              Mr Gary Tan
                                                                              Ms Jean Tan
                                                                              Ms Jolene Seetoh
                                                                              Ms Melissa Giang
                                                                    SGX       Ms Tan Suan Hui
                                                                              Mr Koh Su Haw



 The	comprising	representatives	from	APREA,	IMAS,	SIBA	(with	committee	representatives	from	CF,	DCM	and	EDSP),	law	firms,	MAS	
and	SGX	was	formed	in	October	2006	to	propose	recommendations	to	ensure	offering	documents	are	more	readable	and	relevant	for	
investors.	This	relates	to	prospectus	for	equity,	including	those	issued	under	REITs	and	debentures,	which	include	structured	notes.	The	
taskforce	presented	their	findings	and	recommendations	at	the	MAS-SGX	Quarterly	Meeting	on	1	March	2007	and	list	some	of	the	benefits	
of	creating	a	shorter,	more	concise	offering	document:


•	 making	the	documents	more	readable	and	informative	without	sacrificing	investor	protection
•		 making	Singapore	a	more	cost	effective	and	efficient	jurisdiction	for	public	offering	and	listing
•		 encouraging	foreign	issuers	to	Singapore


MAS	responded	and	called	for	a	meeting	in	June	2007,	with	3	members	of	the	taskforce,	namely	Macquarie	(represented	by	Mr	Low	Whye	
Choong),	APREA	(represented	by	Mr	Peter	Mitchell)	and	Allens	Arthur	Robinson	(represented	by	Mr	Robert	Clarke).		The	feedback	from	
MAS	on	the	taskforce	recommendations	during	this	meeting	are:


•		 The	taskforce	recommended	that	the	legislation	be	changed	and	guidelines	be	introduced	to	focus	on	the	concept	of	“materiality”.	
MAS	is	of	the	opinion	that	there	is	no	need	to	further	introduce	an	additional	“materiality”	test	in	the	legislation	as	materiality	is	implied	but	
they	will	consider	clarifying	expectations	on	materiality.	


•		 It	 was	 also	 recommended	 to	 streamline	 statutory	 requirements	 across	 different	 investment	 products.	 MAS	 will	 review	 disclosure	
requirements	for	debt	securities	to	align	these	closer	to	the	International	Organisation	of	Securities	Commissions	(IOSCO)	standards.	


 •		 Another	 recommendation	 was	 for	 MAS	 to	 mandate	 a	 proforma	 form	 of	 prospectus	 or	 other	 initiatives	 to	 improve	 readability	 of	
prospectuses.	 During	 the	 meeting	 it	 was	 suggested	 that	 an	 abridged	 prospectus,	 which	 could	 either	 be	 a	 past	 or	 new	 offering,	 be	
introduced	as	a	test	case.	Mr	Low	Whye	Choong	of	Macquarie	Securities,	chairperson	of	the	taskforce	is	currently	working	with	MAS	&	
SGX	to	look	into	this.




Singapore Investment Banking Association Annual Report 2007                                                                                    21
iNDEpENDENT
AuDiTors’ rEporT
     To The Members of singapore investment banking Association
     (registration No.: ros 220/74TAp)




We	have	audited	the	accompanying	financial	statements	of	Singapore	Investment	Banking	Association,	which	comprise	the	balance	sheet	
as	at	31	December	2007,	and	the	income	statement,	statement	of	changes	in	fund	and	cash	flow	statement	for	the	year	then	ended,	and	
a	summary	of	significant	accounting	policies	and	other	explanatory	notes.	The	financial	statements	for	the	year	ended	31	December	2006	
were	audited	by	other	independent	auditors	(other	than	RSM	Chio	Lim)	whose	report	dated	5	April	2007	expressed	an	unqualified	opinion	
on	those	financial	statements.	


Council Members’ Responsibility for the Financial Statements
The	 Council	 Members	 are	 responsible	 for	 the	 preparation	 and	 fair	 presentation	 of	 these	 financial	 statements	 in	 accordance	 with	 the	
Singapore	Financial	Reporting	Standards.	This	responsibility	includes:	designing,	implementing	and	maintaining	internal	control	relevant	
to	the	preparation	and	fair	presentation	of	financial	statements	that	are	free	from	material	misstatement,	whether	due	to	fraud	or	error;	
selecting	and	applying	appropriate	accounting	policies;	and	making	accounting	estimates	that	are	reasonable	in	the	circumstances.	


Independent Auditor’s Responsibility
Our	responsibility	is	to	express	an	opinion	on	these	financial	statements	based	on	our	audit.	We	conducted	our	audit	in	accordance	with	
Singapore	Standards	on	Auditing.	Those	standards	require	that	we	comply	with	ethical	requirements	and	plan	and	perform	the	audit	to	
obtain	reasonable	assurance	whether	the	financial	statements	are	free	from	material	misstatement.	


An	audit	involves	performing	procedures	to	obtain	audit	evidence	about	the	amounts	and	disclosures	in	the	financial	statements.	The	
procedures	selected	depend	on	the	auditor’s	judgment,	including	the	assessment	of	the	risks	of	material	misstatement	of	the	financial	
statements,	whether	due	to	fraud	or	error.	In	making	those	risk	assessments,	the	auditor	considers	internal	control	relevant	to	the	entity’s	
preparation	and	fair	presentation	of	the	financial	statements	in	order	to	design	audit	procedures	that	are	appropriate	in	the	circumstances,	
but	not	for	the	purpose	of	expressing	an	opinion	on	the	effectiveness	of	the	entity’s	internal	control.	An	audit	also	includes	evaluating	the	
appropriateness	of	accounting	policies	used	and	the	reasonableness	of	accounting	estimates	made	by	the	council	members,	as	well	as	
evaluating	the	overall	presentation	of	the	financial	statements.


We	believe	that	the	audit	evidence	we	have	obtained	is	sufficient	and	appropriate	to	provide	a	basis	for	our	audit	opinion.	


Opinion


In	our	opinion,	the	accompanying	financial	statements	are	properly	drawn	up	in	accordance	with	the	provisions	of	the	Act	and	Singapore	
Financial	Reporting	Standards	so	as	to	give	a	true	and	fair	view	of	the	state	of	affairs	of	the	association	as	at	31	December	2007	and	the	
results,	changes	in	fund	and	cash	flows	of	the	association	for	the	year	ended	on	that	date.




RSM	CHIO	LIM
Certified	Public	Accountants
Singapore
29	January	2008




22                                                               Singapore Investment Banking Association Annual Report 2007
                                                                FiNANciAl sTATEMENTs

  Income Statement
  Year Ended 31 December 2007


                                                         Note                     2007                2006
                                                                                   $                    $
   Revenue
   Members’	Subscription	                                                       211,500	           202,500
   Interest	Income	From	Bank	                                                     1,149	              1,454	
   Income	From	Functions,	Seminars	And	Publication	                               2,522	            59,894
                                                                                215,171            263,848


   Other Item Of Expense
   Audit	Fees	                                                                    3,220	              7,350
   Accountancy Fees                                                               3,050	              2,993	
   AGM	Expenses	                                                                  4,829	              5,098	
   Bank Charges                                                                      39	                  –	
   Cleaning	Expense	                                                              2,810	                  –	
   General	Expense	                                                                 253                  	–	
   Depreciation                                          5	                       1,150	              2,629	
   Insurance	                                                                     2,703                  	–	
   Maintenance	Of	Equipment	                                                        199	                  –
   Medical	Expense	                                                               1,255	              1,577	
   Miscellaneous-Donation	                                                        1,500	              1,500	
   Newspaper                                                                        633	                  –
   Transport	                                                                     3,535	              3,449
   Rental	Of	Office	                                                             40,574	             54,968	
   Rental	Of	Equipment	                                                           4,051                  	–	
   Repair	And	Maintenance	                                                          758	               370	
   Printing	&	Stationery	                                                         1,161	              3,608	
   Professional	Fee	                                                              2,340              	3,570	
   Photocopy	Changes                                                                 83                   –
   Postages                                                                         461                   –
   Refreshment                                                                      553                   –
   Staff	CPF                                                                     13,371              14,376
   Staff	Salary                                                                 107,091            107,916
   Staff	Bonus                                                                    6,150              15,150
   Seminars	And	Training                                                              –              32,472
   Telephone                                                                      4,345                  	–
   Travelling                                                                       632                   –
   Utilities                                                                        598                   –
                                                                                207,344            249,676
   Surplus Before Income Tax                                                      7,827               6,822
   Income	Tax	Expense                                    4                         (895)                  –
   Surplus, Net Of Income Tax                                                     6,932               6,822




           	
  Chairman		         	       	             	         	          	         Deputy	Chairman/Treasurer
  Mr George Lee (for	OCBC	Bank)	           		        	          	         Mr Sim Buck Khim (for Deutsche Bank AG)


  29	January	2008
  The	accompanying	notes	form	an	integral	part	of	these	financial	statements.



Singapore Investment Banking Association Annual Report 2007                                                         23
FiNANciAl sTATEMENTs

     balance sheet
     As At 31 December 2007




                                                              Note                   2007                2006
                                                                                      $                   $
      ASSETS
      Non-Current Assets
      Plant	And	Equipment                                         5                  1,278	              2,043
      Total Non-Current Assets                                                       1,278	              2,043


      Current Assets
      Trade	And	Other	Receivables	                                6                 23,748	             18,258
      Cash	And	Cash	Equivalents                                   7                122,936	           121,813	
      Total	Current	Assets	                                                        146,684            140,071	
      Total Assets                                                                 147,962            142,114


      FUND AND LIABILITIES

      Fund

      Capital	Fund                                                                 171,000            	165,000
      Accumulated	Fund	                                                            (32,090)	           (39,022)
      Fund Total                                                                   138,910	           125,978	


      Current Liabilities
      Income	Tax	Payable                                                               895	                   -
      Trade	Payables	                                             8                  8,157	             16,136	
      Total Current Liabilities                                                      9,052              16,136
      Total Liabilities                                                              9,052	             16,136	
      Total Fund and Liabilities                                                   147,962	           142,114	




              	
     Chairman		         	       	             	         	          	         Deputy	Chairman/Treasurer
     Mr George Lee (for	OCBC	Bank)	           		        	          	         Mr Sim Buck Khim (for Deutsche Bank AG)


     29	January	2008
     The	accompanying	notes	form	an	integral	part	of	these	financial	statements.




24                                                           Singapore Investment Banking Association Annual Report 2007
                                                           FiNANciAl sTATEMENTs

  statement of changes in Fund
  Year Ended 31 December 2007




                                                                    Capital       Accumulated
                                                                     Fund               Fund        Total
                                                                          $                  $          $
     Current year
     Opening	Balance	At	1	January	2007                             165,000            (39,022)	   125,978
     New	Memberships	During	The	Year	                                 6,000                  -	     6,000	
     Surplus	For	The	Year	                                                 -            6,932	      6,932
     Opening	Balance	At	31	December	2007                           171,000            (32,090)    138,910


     Previous year:
     Opening	Balance	At	1	January	2006                             156,000            (45,844)    110,156
     New	Memberships	During	The	Year                                  9,000                  -      9,000
     Surplus	For	The	Year                                                  -            6,822       6,822
     Balance	As	At	31	December	2006                                165,000            (39,022)    125,978




    The	accompanying	notes	form	an	integral	part	of	these	financial	statements.




Singapore Investment Banking Association Annual Report 2007                                                  25
FiNANciAl sTATEMENTs

     cash Flow statement
     Year Ended 31 December 2007




                                                                                      2007         2006
                                                                                        $            $
      Cash Flows From Operating Activities
      Surplus	Before	Tax                                                             7,827         6,822
      Depreciation	Of	Plant	And	Equipment                                            1,150	        2,629
      Interest	Income                                                               (1,149)	      (1,454)
      Operating	Cash	Flow	Before	Changes	In	Working	Capital                          7,828         7,997
      Trade	And	Other	Receivables                                                   (5,490)        4,653
      Trade	And	Other	Payables                                                      (7,979)        4,736
      Net	Cash	Flows	(Used	In)/From	Operating	Activities                            (5,641)      17,386


      Cash Flows From Investing Activities
      Purchase	Of	Plant	And	Equipment                                                 (385)       (3,065)
      Interest	Received                                                              1,149         1,454
      Net	Cash	Flows	From/	(Used	In)	Investing	Activities                              764        (1,611)


      Cash Flows From Financing Activities
      Entrance Fees From New Members                                                 6,000         9,000
      Net Cash Flows From Financing Activities                                       6,000         9,000


      Net Increase In Cash And Cash Equivalents                                      1,123       24,775
      Cash	And	Cash	Equivalents,	Cash	Flow	Statements,	Beginning	Balance           121,813       97,038


      Cash And Cash Equivalents, Cash Flow Statements,
      Ending Balance (Note 7)                                                      122,936      121,813



     The	accompanying	notes	form	an	integral	part	of	these	financial	statements.




26                                                           Singapore Investment Banking Association Annual Report 2007
                                                                    FiNANciAl sTATEMENTs

    Notes to the Financial statements
    31 December 2007




1. General


The	association	is	registered	in	Singapore	under	the	Societies	Act	(Cap.	311).	The	financial	statements	are	presented	in	Singapore	dollars.	
They	are	drawn	up	in	accordance	with	the	Singapore	Financial	Reporting	Standards	(FRS).	The	financial	statements	were	approved	and	
authorised	for	issue	by	the	Council	Members	on	29	January	2008.


The	principal	activity	of	the	association	is	to	promote	the	interest	of	the	investment	banking	industry	in	Singapore.


The	registered	office	address	is:	24	Raffles	Place	#16-02	Clifford	Centre	Singapore	048621.	The	association	is	domiciled	in	Singapore.


2. Summary of Significant Accounting Policies


Accounting Convention
The	financial	statements	have	been	prepared	in	accordance	with	the	Singapore	Financial	Reporting	Standards	(“FRS”)	as	issued	by	the	
Singapore	Accounting	Standards	Council	as	well	as	all	related	Interpretations	to	FRS	(“INT	FRS”).	The	financial	statements	are	prepared	
on	a	going	concern	basis	under	the	historical	cost	convention	except	where	an	FRS	require	an	alternative	treatment	(such	as	fair	values)	
as	disclosed	where	appropriate	in	these	financial	statements.	


Basis of Preparation of the Financial Statements
The	preparation	of	financial	statements	in	conformity	with	generally	accepted	accounting	principles	requires	the	management	to	make	
estimates	and	assumptions	that	affect	the	reported	amounts	of	assets	and	liabilities	and	disclosure	of	contingent	assets	and	liabilities	at	
the	date	of	the	financial	statements	and	the	reported	amounts	of	revenues	and	expenses	during	the	reporting	period.	Actual	results	could	
differ	from	those	estimates.	The	estimates	and	assumptions	are	reviewed	on	an	ongoing	basis.	Apart	from	those	involving	estimations,	
management	has	made	judgements	in	the	process	of	applying	the	entity’s	accounting	policies.	The	areas	requiring	management’s	most	
difficult,	subjective	or	complex	judgements,	or	areas	where	assumptions	and	estimates	are	significant	to	the	financial	statements,	are	
disclosed	at	the	end	of	this	footnote,	where	applicable.


Revenue Recognition
The	revenue	amount	is	the	fair	value	of	the	consideration	received	or	receivable	from	the	gross	inflow	of	economic	benefits	during	the	year	
arising	from	the	course	of	the	ordinary	activities	of	the	entity	and	it	is	shown	net	of	sales	related	taxes,	estimated	returns,	discounts	and	
volume	rebates.	Members’	subscriptions,	which	are	levied	on	members	on	an	annual	basis,	are	recognised	on	accrual	basis.	Interest	is	
recognised	using	the	effective	interest	method.


Employee Benefits
Contributions	to	defined	contribution	retirement	benefit	plans	are	recorded	as	an	expense	as	they	fall	due.	The	entity’s	legal	or	constructive	
obligation	 is	 limited	 to	 the	 amount	 that	 it	 agrees	 to	 contribute	 to	 an	 independently	 administered	 fund.	 This	 includes	 the	 government	
managed	retirement	benefit	plan	such	as	the	Central	Provident	Fund	in	Singapore.	For	employee	leave	entitlement	the	expected	cost	of	
short-term	employee	benefits	in	the	form	of	compensated	absences	is	recognised	in	the	case	of	accumulating	compensated	absences,	
when	the	employees	render	service	that	increases	their	entitlement	to	future	compensated	absences;	and	in	the	case	of	non-accumulating	
compensated	absences,	when	the	absences	occur.	A	liability	for	bonuses	is	recognised	where	the	entity	is	contractually	obliged	or	where	
there	is	constructive	obligation	base	on	past	practice.




Singapore Investment Banking Association Annual Report 2007                                                                                        27
FiNANciAl sTATEMENTs

     Notes to the Financial statements
     31 December 2007



2. Summary of Significant Accounting Policies (Cont’d)


Income Tax
The	income	taxes	are	accounted	using	the	asset	and	liability	method	that	requires	the	recognition	of	taxes	payable	or	refundable	for	the	
current	year	and	deferred	tax	liabilities	and	assets	for	the	future	tax	consequence	of	events	that	have	been	recognised	in	the	financial	
statements	or	tax	returns.	The	measurements	of	current	and	deferred	tax	liabilities	and	assets	are	based	on	provisions	of	the	enacted	or	
substantially	enacted	tax	laws;	the	effects	of	future	changes	in	tax	laws	or	rates	are	not	anticipated.	Income	tax	expense	represents	the	
sum	of	the	tax	currently	payable	and	deferred	tax.	Tax	and	deferred	tax	are	recognised	in	the	income	statement	except	that	when	they	
relate	to	items	that	initially	bypass	the	income	statement	and	are	taken	to	equity,	in	which	case	they	are	similarly	taken	to	equity.	Deferred	
tax	assets	and	liabilities	are	offset	when	they	relate	to	income	taxes	levied	by	the	same	income	tax	authority.	The	carrying	amount	of	
deferred	tax	assets	is	reviewed	at	each	balance	sheet	date	and	is	reduced,	if	necessary,	by	the	amount	of	any	tax	benefits	that,	based	on	
available	evidence,	are	not	expected	to	be	realised.	A	deferred	tax	amount	is	recognised	for	all	temporary	differences.


Plant and Equipment
Depreciation	is	provided	on	a	straight-line	basis	to	allocate	the	gross	carrying	amounts	less	their	residual	values	over	their	estimated	useful	
lives	of	each	part	of	an	item	of	these	assets.	The	annual	rates	of	depreciation	are	as	follows:


Plant	and	equipment	33.33%


An	asset	is	depreciated	when	it	is	available	for	use	until	it	is	derecognised	even	if	during	that	period	the	item	is	idle.	Fully	depreciated	assets	
still	in	use	are	retained	in	the	financial	statements.	


Plant	 and	 equipment	 are	 carried	 at	 cost	 on	 initial	 recognition	 and	 after	 initial	 recognition	 at	 cost	 less	 any	 accumulated	 depreciation	
and	any	accumulated	impairment	losses.	The	gain	or	loss	arising	from	the	derecognition	of	an	item	of	property,	plant	and	equipment	is	
determined	as	the	difference	between	the	net	disposal	proceeds,	if	any,	and	the	carrying	amount	of	the	item	and	is	recognised	in	the	
income	statement.	The	residual	value	and	the	useful	life	of	an	asset	is	reviewed	at	least	at	each	financial	year-end	and,	if	expectations	
differ	from	previous	estimates,	the	changes	are	accounted	for	as	a	change	in	an	accounting	estimate,	and	the	depreciation	charge	for	the	
current	and	future	periods	are	adjusted.	


Cost	also	includes	acquisition	cost,	any	cost	directly	attributable	to	bringing	the	asset	to	the	location	and	condition	necessary	for	it	to	be	
capable	of	operating	in	the	manner	intended	by	management.	Subsequent	cost	are	recognised	as	an	asset	only	when	it	is	probable	that	
future	economic	benefits	associated	with	the	item	will	flow	to	the	entity	and	the	cost	of	the	item	can	be	measured	reliably.	All	other	repairs	
and	maintenance	are	charged	to	the	income	statement	when	they	are	incurred.


Leased Assets
Leases	 where	 the	 lessor	 effectively	 retains	 substantially	 all	 the	 risks	 and	 benefits	 of	 ownership	 of	 the	 leased	 assets	 are	 classified	 as	
operating	leases.	For	operating	leases,	lease	payments	are	recognised	as	an	expense	in	the	income	statement	on	a	straight-line	basis	
over	the	term	of	the	relevant	lease	unless	another	systematic	basis	is	representative	of	the	time	pattern	of	the	user’s	benefit,	even	if	the	
payments	are	not	on	that	basis.	Lease	incentives	received	are	recognised	in	the	income	statement	as	an	integral	part	of	the	total	lease	
expense.


Financial Assets
Initial	recognition	and	measurement:


 A	financial	asset	is	recognised	on	the	balance	sheet	when,	and	only	when,	the	entity	becomes	a	party	to	the	contractual	provisions	of	the	
instrument.	The	initial	recognition	of	financial	assets	is	at	fair	value	normally	represented	by	the	transaction	price.	The	transaction	price	
for	financial	asset	not	classified	at	fair	value	through	income	statement	includes	the	transaction	costs	that	are	directly	attributable	to	the	
acquisition	or	issue	of	the	financial	asset.	Transaction	costs	incurred	on	the	acquisition	or	issue	of	financial	assets	classified	at	fair	value	
through	profit	are	expensed	immediately.	The	transactions	are	recorded	at	the	trade	date.




28                                                                   Singapore Investment Banking Association Annual Report 2007
                                                                    FiNANciAl sTATEMENTs

     Notes to the Financial statements
     31 December 2007




2.   Summary of Significant Accounting Policies (Cont’d)


Subsequent	measurement	based	on	the	classification	of	the	financial	assets	in	one	of	the	following	four	categories	under	FRS	39	is	as	
follows:


Financial	assets	at	fair	value	through	profit	and	loss:	As	at	year	end	date	there	were	no	financial	asset	classified	in	this	category.


Held-to-maturity	financial	assets:	As	at	year	end	date	there	were	no	financial	asset	classified	in	this	category.


 Loans	and	receivables:	Loans	and	receivables	are	non-derivative	financial	assets	with	fixed	or	determinable	payments	that	are	not	quoted	
in	an	active	market.	Assets	that	are	for	sale	immediately	or	in	the	near	term	are	not	be	classified	in	this	category.	These	assets	are	carried	
at	amortised	costs	using	the	effective	interest	method	(except	that	short-duration	receivables	with	no	stated	interest	rate	are	normally	
measured	at	original	invoice	amount	unless	the	effect	of	imputing	interest	would	be	significant)	minus	any	reduction	(directly	or	through	the	
use	of	an	allowance	account)	for	impairment	or	uncollectibility.	Impairment	charges	are	provided	only	when	there	is	objective	evidence	that	
an	impairment	loss	has	been	incurred	as	a	result	of	one	or	more	events	that	occurred	after	the	initial	recognition	of	the	asset	(a	‘loss	event’)	
and	that	loss	event	(or	events)	has	an	impact	on	the	estimated	future	cash	flows	of	the	financial	asset	or	group	of	financial	assets	that	can	
be	reliably	estimated.	Losses	expected	as	a	result	of	future	events,	no	matter	how	likely,	are	not	recognised.	For	impairment,	the	carrying	
amount	of	the	asset	is	reduced	through	use	of	an	allowance	account.	The	amount	of	the	loss	is	recognised	in	the	income	statement.	The	
trade	and	other	receivables	are	classified	in	this	category.


Available	for	sale	financial	assets:	As	at	year	end	date	there	were	no	financial	asset	classified	in	this	category.


Derecognition	of	financial	assets:
Irrespective	of	the	legal	form	of	the	transactions	performed,	financial	assets	are	derecognised	when	they	pass	the	“substance	over	form”	
based	derecognition	test	prescribed	by	FRS	39	relating	to	the	transfer	of	risks	and	rewards	of	ownership	and	the	transfer	of	control.


 Cash	and	cash	equivalents:
 Cash	and	cash	equivalents	include	bank	and	cash	balances,	on	demand	deposits	and	any	highly	liquid	debt	instruments	purchased	with	
an	original	maturity	of	three	months	or	less.	For	the	cash	flow	statement	the	item	includes	cash	and	cash	equivalents	less	cash	subject	
to	restriction	and	bank	overdrafts	payable	on	demand	that	form	an	integral	part	of	cash	management.	Other	financial	assets	and	financial	
liabilities	at	fair	value	through	profit	or	loss	are	presented	within	the	section	on	operating	activities	as	part	of	changes	in	working	capital	in	
the	cash	flow	statement.


Financial Liabilities
Initial	recognition	and	measurement:
A	financial	liability	is	recognised	on	the	balance	sheet	when,	and	only	when,	the	entity	becomes	a	party	to	the	contractual	provisions	of	
the	instrument.	The	initial	recognition	of	financial	liability	is	at	fair	value	normally	represented	by	the	transaction	price.	The	transaction	price	
for	financial	liability	not	classified	at	fair	value	through	income	statement	includes	the	transaction	costs	that	are	directly	attributable	to	the	
acquisition	or	issue	of	the	financial	liability.	Transaction	costs	incurred	on	the	acquisition	or	issue	of	financial	liability	classified	at	fair	value	
through	profit	are	expensed	immediately.	The	transactions	are	recorded	at	the	trade	date.	Financial	liabilities	including	bank	and	other	
borrowings	are	classified	as	current	liabilities	unless	there	is	an	unconditional	right	to	defer	settlement	of	the	liability	for	at	least	12	months	
after	the	balance	sheet	date.




Singapore Investment Banking Association Annual Report 2007                                                                                        29
FiNANciAl sTATEMENTs

     Notes to the Financial statements
     31 December 2007



2. Summary of Significant Accounting Policies (Cont’d)


Subsequent	measurement:
Subsequent	measurement	based	on	the	classification	of	the	financial	assets	in	one	of	the	following	two	categories	under	FRS	39	is	as	
follows:


1.	Liabilities	at	fair	value	through	profit	and	loss:	As	at	year	end	date	there	were	no	financial	asset	classified	in	this	category.


 2.	Other	financial	liabilities:	All	liabilities,	which	have	not	been	classified	in	the	previous	category	fall	into	this	residual	category.	These	
liabilities	are	carried	at	amortised	cost	using	the	effective	interest	method.	Trade	and	other	payables	and	borrowing	are	classified	in	this	
category.	Items	classified	within	trade	and	other	payables	are	not	usually	re-measured,	as	the	obligation	is	usually	known	with	a	high	
degree	of	certainty	and	settlement	is	short-term.	


Fair Value of Financial Instruments
The	carrying	values	of	current	financial	assets	and	financial	liabilities	including	cash,	accounts	receivable,	short-term	borrowings,	accounts	
payable	approximate	their	fair	values	due	to	the	short-term	maturity	of	these	instruments.	The	fair	values	of	non-current	financial	instruments	
are	not	disclosed	unless	there	are	significant	items	at	the	end	of	the	year	and	in	the	event	the	fair	values	are	disclosed	in	the	relevant	notes.	
Disclosures	of	fair	value	are	not	made	when	the	carrying	amount	is	a	reasonable	approximation	of	fair	value.	The	maximum	exposure	to	
credit	risk	is	the	fair	value	of	the	financial	instruments	at	the	balance	sheet	date.	The	fair	value	of	a	financial	instrument	is	derived	from	an	
active	market.	The	appropriate	quoted	market	price	for	an	asset	held	or	liability	to	be	issued	is	usually	the	current	bid	price	without	any	
deduction	for	transaction	costs	that	may	be	incurred	on	sale	or	other	disposal)	and,	for	an	asset	to	be	acquired	or	liability	held,	the	asking	
price.


Critical Judgements, Assumptions and Estimation Uncertainties
There	 were	 no	 critical	 judgements	 made	 in	 the	 process	 of	 applying	 the	 accounting	 policies	 that	 have	 the	 most	 significant	 effect	 on	
the	amounts	recognised	in	the	financial	statements.	There	were	no	key	assumptions	concerning	the	future,	and	other	key	sources	of	
estimation	uncertainty	at	the	balance	sheet	date,	that	have	a	significant	risk	of	causing	a	material	adjustment	to	the	carrying	amounts	of	
assets	and	liabilities	within	the	next	financial	year.




30                                                                Singapore Investment Banking Association Annual Report 2007
                                                             FiNANciAl sTATEMENTs

      Notes to the Financial statements
      31 December 2007




 3.    Employee Benefits Expense
                                                                                      2007           2006
                                                                                       $              $
  Employee	benefits	expense                                                         113,241	      123,066
  Contributions	to	defined	contribution	plan                                         13,371	       14,376	
  Other	benefits	                                                                     4,790	        5,026
  Total	employee	benefits	expense                                                   131,402       142,468




 4.    Income Tax


 The	association’s	tax	status	is	governed	by	section	11(2)	of	the	Income	Tax	Act.

                                                                                      2007           2006
                                                                                        $             $
  Current	tax	expense                                                                   895	             -


 The	income	tax	expense	varied	from	the	amount	of	tax	expense	determined	by	applying	the	Singapore	income	tax	rate	of	18%	
 (2006:	20%)	to	surplus	before	income	tax	as	a	result	of	the	following	differences:

                                                                                      2007           2006
                                                                                       $               $
  Tax	rate	reconciliation:
  Surplus	before	tax                                                                  7,827         6,822


  Income	tax	expense	at	the	above	rate                                                1,409         1,364
  Non-allowable	items                                                                   270         1,515
  Non	income	statement	item	subject	to	tax                                            1,080         1,800
  Prior	years’	tax	loss	carryforwards	utilized                                             -       (4,679)
  Prior	years’	donation	carryforwards	utilized                                        (937)              -
  Tax	exemptions                                                                     (1,315)             -
  Other	minor	item	less	than	3%	each                                                    388              -
  Total	income	tax	expense                                                              895           964


  Effective	tax	rate                                                                11.43%        14.13%




Singapore Investment Banking Association Annual Report 2007                                                                  31
FiNANciAl sTATEMENTs

     Notes to the Financial statements
     31 December 2007



     5.   Plant and Equipment
                                                                                            Plant & Equipment
                                                                                                            $
     Cost:
     At	beginning	of	year	1	January	2007                                                                 92,471
     Additions	                                                                                             385
     Assets written off                                                                                 (80,416)
     At	end	of	year	31	December	2007                                                                     12,440


     Accumulated	depreciation:
     At	beginning	of	year	1	January	2007                                                                 90,428
     Depreciation for the year                                                                            1,150
     Assets written off                                                                                 (80,416)
     At	end	of	year	31	December	2007                                                                     11,162


     Net	book	value:
     At	end	of	year	31	December	2007                                                                      1,278


      Cost:
      At	beginning	of	year	1	January	2006                                                                89,406
      Additions	                                                                                           3,065
      At	end	of	year	31	December	2006                                                                    92,471


      Accumulated	depreciation:
      At	beginning	of	year	1	January	2006                                                                87,799
      Depreciation for the year                                                                            2,629
      At	end	of	year	31	December	2006                                                                    90,428


      Net	book	value:
      At	end	of	year	31	December	2006                                                                      2,043


     6. Trade and Other Receivables

                                                                                         2007              2006
                                                                                          $                 $
      Trade	receivables:
      Members                                                                                   -	         4,500	


      Other	receivables	and	prepayments:
      Deposits                                                                           9,509             9,579
      Prepayments                                                                      13,468              3,745
      Other	receivables                                                                    771               434
      Total	trade	and	other	receivables                                                23,748             18,258

     The	average	credit	period	generally	granted	to	members	is	about	30	days	(2006:	30	days).


     Current	receivables	with	a	short	duration	are	not	discounted	and	the	carrying	amounts	are	assumed	to	be	a	reasonable	
     approximation	of	fair	values.




32                                                          Singapore Investment Banking Association Annual Report 2007
                                                              FiNANciAl sTATEMENTs

      Notes to the Financial statements
      31 December 2007



 7. Cash and Cash Equivalents

                                                                                           2007             2006
                                                                                            $                $
  Cash	on	hand                                                                                -	             500
  Cash at bank                                                                         60,972	            60,389	
  Fixed	deposit	cash	bank                                                              61,964             60,924
                                                                                     122,936            121,813


 The	effective	interest	rate	of	interest	earning	balances	is	1.7%	(2006:1.7%)	per	annum.


 The	carrying	amounts	are	assumed	to	be	a	reasonable	approximation	of	fair	values.




 8.    Trade Payables
                                                                                           2007             2006
                                                                                             $               $
  Trade	payables	and	accrued	liabilities:
  Accrued	liabilities                                                                   8,157             16,136



 The	average	credit	period	taken	to	settle	non-related	trade	payables	is	about	30	days	(2006:	30	days).	The	carrying	amounts	
 are	assumed	to	be	a	reasonable	approximation	of	fair	values.




 9.    Operating Lease Payment Commitments

 At	the	balance	sheet	date,	the	total	of	future	minimum	lease	payments	under	non-cancellable	operating	leases	are	as	follows:

                                                                                           2007            2006
                                                                                             $               $
  Not later than one year                                                            	125,148            41,370
  Later	than	one	year	and	not	later	than	five	years                                    62,574            56,937
                                                                                     187,722             98,307


  Rental	expense	for	the	year                                                          44,625            42,724


 Operating	lease	payments	are	for	rentals	payable	for	office	premises	and	office	equipment.	The	lease	from	the	landlord	is	for	3	
 years	from	1	July	2006.	The	lease	rental	terms	are	negotiated	for	an	average	term	of	3	year.




Singapore Investment Banking Association Annual Report 2007                                                                         33
FiNANciAl sTATEMENTs

     Notes to the Financial statements
     31 December 2007




     10. Changes and Adoption of Financial Reporting Standard

     For	the	year	ended	31	December	2007	the	following	new	or	revised	Singapore	Financial	Reporting	Standards	were	adopted	
     for	the	first	time.	The	new	or	revised	standards	did	not	require	any	material	modification	of	the	measurement	method	or	the	
     presentation	in	the	financial	statements.	


     FRS No.                Title


     FRS	1		 	              Presentation	of	Financial	Statements	-	Amendments	relating	to	capital	disclosures	(*)
     FRS	40		 	             Investment	Property	(*)
     INT	FRS	105		          Rights	to	Interests	arising	from	Decommissioning,	Restoration	and	Environmental	Rehabilitation	Funds	(*)
     INT	FRS	107		          Applying	the	Restatement	Approach	under	FRS	29	Financial	Reporting	in	Hyperinflationary	Economies	(*)
     INT	FRS	108		          Scope	of	FRS	102	(*)
     INT	FRS	109		          Reassessment	of	Embedded	Derivatives	(*)
     INT	FRS	110		          Interim	Financial	Reporting	and	Impairment	(*)
     INT	FRS	111		          FRS102	-	Group	and	Treasury	Share	Transactions	(*)


     (*)	Not	relevant	to	the	entity.




     11. Future Changes in Accounting Standards

     The	following	new	or	revised	Singapore	Financial	Reporting	Standards	that	have	been	issued	will	be	effective	in	future.	The	transfer	
     to	the	new	or	revised	standards	from	the	effective	dates	is	not	expected	to	have	a	material	impact	on	the	financial	statements.	


      FRS No.             Title                                                             Effective date for periods
                                                                                                beginning on or after
      FRS	23	             Borrowing Costs (*)                                                                  1.1.2009
      FRS	107	            Financial	Instruments:	Disclosures	                                                  1.1.2008
      FRS	107	            Financial	Instruments:	Disclosures	-	Implementation	Guidance                         1.1.2008
      FRS	108	            Operating	Segments	(*)	                                                              1.1.2009
      INT	FRS	111         FRS102	-	Group	and	Treasury	Share	Transactions	(*)                                   1.3.2007
      INT	FRS	112	        Service	Concessions	Arrangements	(*)	                                                1.1.2008	


     (*)	Not	relevant	to	the	entity.




     12. Comparative Figures

     The	financial	statements	for	the	year	ended	31	December	2006	were	audited	by	other	independent	auditors	(other	than	RSM	
     Chio	Lim)	whose	report	dated	5	April	2007	expressed	an	unqualified	opinion	on	those	financial	statements.




34                                                              Singapore Investment Banking Association Annual Report 2007
                                                              lisT oF MEMEbErs

                                              list of members as at 31 December 2007


                                              1.	    ABN	AMRO	BANK	N.V.
                                              2.	    ANZ	SINGAPORE	LIMITED
                                              3.	    AFC	MERCHANT	BANK
                                              4.	    BARCLAYS	BANK	PLC
                                              5.	    BNP	PARIBAS	PEREGRINE	(SINGAPORE)	LTD
                                              6.	    BANK	OF	NOVA	SCOTIA	ASIA	LTD,	THE
                                              7.	    BSI	BANK	LIMITED
                                              8.	    CIBC	(ASIA)	LIMITED
                                              9.	    CITICORP	INVESTMENT	BANK	(S)	LTD
                                              10.	   CREDIT	SUISSE
                                              11.	   CHINA	CONSTRUCTION	BANK
                                              12.	   DAIWA	SECURITIES	SMBC	SINGAPORE	LTD
                                              13.	   DBS	BANK	LTD
                                              14.	   DEXIA	BIL	ASIA	SINGAPORE	LIMITED
                                              15.	   DRESDNER	BANK	AG
                                              16.	   DEUTSCHE	BANK	AG
                                              17.	   DELOITTE	&	TOUCHE	CORPORATE	FINANCE	PTE	LTD
                                              18.	   FORTIS	PRIVATE	BANKING	SINGAPORE	LTD
                                              19.	   GOLDMAN	SACHS	(SINGAPORE)	PTE
                                              20.	   HONGKONG	&	SHANGHAI	BANKING	CORPORATION	LTD,	THE
                                              21.	   HSBC	PRIVATE	BANK	(SUISSE)	SA
                                              22.	   HONG	LEONG	FINANCE	LIMITED
                                              23.	   ING	BANK	N.V.
                                              24.	   J.P.	MORGAN	SECURITIES	(S.E.A.)	LIMITED
                                              25.	   MERRILL	LYNCH	INTERNATIONAL	BANK	LTD
                                              26.	   MORGAN	STANLEY	ASIA	(SINGAPORE)	PRIVATE
                                              27.	   MACQUARIE	CAPITAL	(SINGAPORE)	PTE	LIMITED
                                              28.	   MITSUBISHI	UFJ	SECURITIES	(SINGAPORE)	LTD
                                              29.	   NIBC	BANK	LTD
                                              30.	   N	M	ROTHSCHILD	&	SONS	(SINGAPORE)	LTD
                                              31.	   NIKKO	MERCHANT	BANK	(S)	LTD,	THE
                                              32.	   NOMURA	SINGAPORE	LTD
                                              33.	   OCBC	BANK	LTD
                                              34.	   PHILLIP	SECURITIES	PTE	LTD
                                              35.	   PRIMEPARTNERS	CORPORATE	FINANCE	PTE	LTD
                                              36.	   PRICEWATERHOUSECOOPERS	CORPORATE	FINANCE	PTE	LTD
                                              37.	   PLATINUM	SECURITIES	CO.	LTD
                                              38.	   STANDARD	CHARTERED	BANK
                                              39.	   STIRLING	COLEMAN	CAPITAL	LTD
                                              40.	   STONE	FOREST	M&A	PTE	LTD
                                              41.	   SAC	CAPITAL	PRIVATE	LIMITED
                                              42.	   SOCIETE	GENERALE
                                              43.	   SBI	E2-CAPITAL	ASIA	SECURITIES	PTE	LTD
                                              44.	   UBS	AG
                                              45.	   UOB	ASIA	LIMITED
                                              46.	   WESTCOMB	FINANCIAL	GROUP	LIMITED
                                              47.	   WESTLB	ASIA	PACIFIC	LIMITED




Singapore Investment Banking Association Annual Report 2007                                             35
     singapore investment banking Association


     AUDITORS
     RSM	CHIO	LIM
     Certified	Public	Accountants


     BANKERS
     DBS	Bank	Ltd
     Raffles	Place	Branch
     22	Malacca	Street	#	01-00
     DBS	Securities	Building
     Singapore	048980


     REGISTERED OFFICE
     24	Raffles	Place
     #	16-02	Clifford	Centre
     Singapore	048621	




36                                  Singapore Investment Banking Association Annual Report 2007

				
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