Given the very significant presence of UBS in Singapore, in particular the size of its private bank her, and how GIC's investment in UBS was expected to embed UBS even more deeply into Singapore, I thought it relevant to ask this question. After all, we should ensure that any fraudulent and criminal practices in UBS' US operations do not exist here.
I asked the question even though I had already anticipated the answer. I was not disappointed in that the answer was exactly what I had expected -- this is, after all, not the first time such questions have been asked of our investments -- but I certainly do not think the answer is adequate. At the very minimum, as the owner of the funds being managed by GIC, I would expect the Government to have a view on how its investments are doing, even if it does not interfere in the actual investment decisions.
WPQ
GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION INVESTMENT IN UBS
(Implications from Ongoing Investigations)
(Implications from Ongoing Investigations)
Mr Siew Kum Hong: To ask the Senior Minister whether the ongoing investigations in the US into allegations that UBS’ private bank helped clients evade taxes and that UBS had defrauded its clients who had purchased auction rate securities have any implications for the investment by the Government of Singapore Investment Corporation in UBS and for Singapore’s aspiration to be a global financial centre and a private banking hub.
Mr Goh Chok Tong: Singapore's success as an international financial centre is built on a track record and reputation for integrity, high standards of financial regulation and rigorous supervision and strict enforcement. MAS requires all financial institutions operating in Singapore to abide by the relevant laws and regulations in Singapore and their home jurisdiction.
The investment in UBS has nothing to do with our effort in building Singapore as an international financial centre. This investment is made by GIC and Government does not influence or intervene in GIC’s specific investment decisions. GIC makes these decisions on its own, and has explained the reasons for its investments in UBS.
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