SGX RegCo’s IFA guidelines commendable, but it’s time to look at other protections for minorities

EARLIER this month, Singapore Exchange Regulation (SGX RegCo) set out guidelines on independent financial advisers (IFAs) in the context of its listing rules.

Much of the eight-page document dated Jul 3 was about IFAs having to be independent and unburdened by conflicts of interests; exercising diligence, objectivity and transparency in their analyses and opinions; and flexing their skill and professional judgement in the application of various valuation methodologies.

These are, of course, things many investors would reasonably assume IFAs are already expected to do. But SGX RegCo also provided some hints in its new guidelines – which are to supplement guidance on IFAs provided by the Securities Industry Council in relation to the Takeover Code – on where it sees potential for trouble.