The Monetary Authority of Singapore said it has not uncovered any impropriety regarding the bank's sale of Hyflux's securities.
After its supervisory review, the Monetary Authority of Singapore (MAS) on Monday it has not uncovered any lapses or wrongdoing by DBS Group Holdings in performing its roles as both issue manager and distributor of Hyflux's perpetual securities in 2016. The statements were made in response to Bloomberg's queries.
DBS was the sole lead manager and bookrunner of Hyflux's issue of S$500 million 6 percent perpetual securities on May 27, 2016. Many retail investors had bought securities issued by the beleaguered power and water treatment firm due to the familiarity with its brand.
Caution Highlighted in Offer Documents
As an issue manager, DBS has conducted due diligence checks to ensure that material information relating to Hyflux was highlighted in the offering document of Hyflux securities, MAS said.
«We note that Hyflux had disclosed in its offering document in 2016 that the Tuaspring power plant was expected to incur losses if electricity prices in Singapore were to remain low. The offering document was also cautious on the outlook for the water and energy markets,» MAS said in its response.
Disclosures Present
MAS also noted that «as a distributor of the securities, DBS complied with MAS' requirements to configure its ATM screens to remind investors to read the disclosure documents before making their applications».
«MAS, through the national financial education programme MoneySense, has been working with industry and other stakeholders to educate investors about the features and risks of the various investment products and encourage investors to seek financial advice if needed. This also includes emphasizing the importance of diversifying one's investment portfolio,» it added.
