Stock market needs whistle-blowing procedure

WHISTLE-BLOWING is a controversial topic because of the negative connotations associated with snitching or taking covert action that could lead to punitive legal measures and the involvement of law enforcement.

There is also the fear of reprisals and possibly even physical harm to contend with, and it is likely for these reasons that the local stock market currently does not have a formal system whereby the identities of complainants can be kept confidential and where wrongdoing can be reported to either the Singapore Exchange (SGX) or Monetary Authority of Singapore (MAS).

Properly administered however, such a system can be beneficial and has been installed in other developed markets. In the US for example, the public is actively encouraged to engage the Securities and Exchange Commission (SEC). Its website states under the section "SEC Center for Complaints and Enforcement Tips" that the commission welcomes hearing from investors because the information provided may alert the SEC to "broker misconduct, unfair practices or the latest fraud".