Frequently Asked Questions about CAPS
What is CAPS?
Clearing and Payment Services Pte. Ltd. is an independent shared service utility created to initially provide a comprehensive outsourcing service for processing CLS transactions.
CAPS specialises in providing a comprehensive outsourcing solution enabling you to leverage a shared service utility model to manage your operational risks more effectively and efficiently.
By deploying your operations in a shared service utility, you can enjoy the benefits of :
• Low operating costs from economies of scale and
• Superior service from delivering best of breed services to multiple clients
Are there any other benefits that we might receive from CAPS?
We believe the following features of CAPS would be of interest to customers:
Strong Governance: CAPS has established a comprehensive governance model ensuring best practice management. CAPS is based in Singapore, a jurisdiction respected worldwide for stability and strong governance.
Independence and Confidentiality: CAPS is also not a Bank and hence not a competitor or a potential customer to any of its customers. Customer data is kept separate at all times and robust systems and processes are in place to prevent release of data to any unauthorised third party.
Security and BCP: CAPS has strong physical and IT security measures in place to protect its customers. The IT infrastructure has passed rigorous testing by professional security firms. CAPS has further put in place BCP systems in line with industry best practices to provide customers with highly resilient services.
Who owns CAPS?
CAPS founding Shareholders of CAPS are Development Bank of Singapore (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB). Each has an equal share in CAPS.
How long has CAPS been around?
CAPS was incorporated in Singapore in 2001 and became fully operational in December 2002.
Does a Customer have to become a shareholder of CAPS?
There is no such requirement. CAPS is happy to take on new customers without a shareholding arrangement.
Can new customers become shareholder of CAPS?
Yes. New customers can also become shareholders of CAPS. There is currently no restriction on customers taking an equity stake in CAPS.
What is the ownership model for new members / shareholders?
The ownership model for new members / shareholders would need to be discussed in further detail when the situation presents itself.
How long did it take to build CAPS?
Work on building CAPS commenced in July 2001 and CAPS went live on 11th December 2002, period of about 18 months.
Is CAPS a CLS Settlement Member / Can CAPS do Third Party?
CAPS is not a CLS settlement member so is not in a position to offer CLS Third Party services to banks. However the CAPS infrastructure does fully support a Third Party option should a bank choose to offer such a service on to its customers.
What is CAPS’ Governance Model?
CAPS has put in place a governance model to ensure that best corporate governance practices are adhered to. This includes the appointment of an independent risk director to the Board, the establishment of a Governance & Risk Management Committee and an annual independent review of the controls and procedures within CAPS.
How does CAPS manage its risks?
CAPS has taken extensive measures to ensure that the operation is run along the most exacting of standards for a shared services centre. These include an annual independent review of the controls and procedures within CAPS, the development by a leading external consultancy of an internal risk management framework for identifying and managing our risks, and the independent certification of our security infrastructure. This approach is then overseen by the Governance & Risk Management Committee established within CAPS.
What is the CAPS’ Organisation Structure?
At the Corporate level, the Board consists of 7 directors 6 of whom are drawn from our shareholder banks. The 7th director is an independent director with special responsibilities for risk management.
At the Operational level, there is a management team headed by the CEO and consisting of Heads of Operations, Technology, Finance and Risk.
We are interested in joining CAPS - What happens next?
CAPS will need to do some detailed analysis around bank requirements, the infrastructure, current/projected trade levels, expected timelines etc. - in essence do a business case for the concept. There will also be a need to put in place a Non Disclosure Agreement, together with some form of Memorandum of Understanding (MOU) covering the objectives and scope of the exercise. The outcome would be a project proposal with timeline, costs, deliverables etc.