MAS proposes tighter board rules for S’pore banks, insurers
Interested parties have until Dec 9 to share feedback.
Singapore's Monetary Authority of Singapore (MAS) is proposing tighter corporate governance rules for local banks and insurers. The regulator is seeking feedback on updates to existing guidelines for financial institutions (FIs) as part of its ongoing review of regulatory standards. The proposed changes aim to enhance board composition, independence, and oversight as financial institutions grow in scale and complexity.
Key updates include:
1. Increased minimum board size:
- Domestic systemically important banks (7 directors)
- Full banks and domestic systemically important insurers (5 directors)
2. Enhanced independence criteria:
- Directors assessed based on relationships with the FI, subsidiaries, substantial shareholders, and family members
- Directors with a total of nine years' service, not necessarily continuously, would be deemed non-independent
3. Prior approval for key appointments:
- Chairperson of nominating committee of locally incorporated banks and insurers
- Chief information officer of domestic systematically important banks
4. Streamlined requirements for lower-impact FIs:
- Less stringent rules for FIs with lesser retail reach or systemically important status
These proposed changes build upon revisions made in November 2021 and aim to maintain effective safeguards in areas where risks and practices have evolved.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
