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Legitimate to expect disclosures on rebates for bond sales: MAS

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Some form of disclosure on rebates for bond sales by private banks is important, and a legitimate expectation, Monetary Authority of Singapore (MAS) managing director Ravi Menon said.

SOME form of disclosure on rebates for bond sales by private banks is important, and a legitimate expectation, Monetary Authority of Singapore (MAS) managing director Ravi Menon said.

Speaking to the media on Tuesday, he said though that banning such rebates is "a rather draconian step". He added that the larger focus is that financial institutions must deal with their customers fairly.

The practice of private bankers earning a rebate from selling bonds to clients has come under scrutiny, amid worries that several high-yield bonds held by private-banking investors are now under pressure.

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