22 January 2020
On 2 January 2020, Singapore Exchange Regulation (“SGX RegCo”) announced that it has set up a working group to review the retail bond regulatory framework.
The working group comprises representatives from industry professionals and investors and will discuss matters such as the admission criteria for retail bond listings, the continuing obligations of issuers of such bonds, and ways to protect bondholder interest in the event of a default or restructuring.
Among other things, the working group will discuss the possibility of tightening the admission criteria including requiring a minimum level of subscription by institutional investors and a credit rating. The working group will also provide views on how individual investors can be better served when bonds they hold are in distress. Suggestions will be sought on how to fund trustees acting for bondholders and ways to help bondholders organise themselves.
The working group is expected to present its recommendations to SGX RegCo by middle of 2020, with a public consultation likely taking place by the end of the year.
Representatives from Allen & Gledhill participating in the working group are Partners Margaret Chin, Yeo Wico and Andrew Chan.