MAS seeks feedback on corporate governance regulations for banks, insurers
This is part of its efforts to keep regulatory standards current and effective
The Monetary Authority of Singapore (MAS) is soliciting feedback on proposed amendments to regulations governing corporate governance for banks, insurers, and their designated financial holding companies. This initiative forms part of MAS's routine review process to ensure that governance standards remain up-to-date and effective.
The suggested updates encompass raising the minimum number of board members and mandating approval for key appointments within these financial institutions. The consultation paper detailing these targeted regulatory modifications highlights improvements in areas where risks and practices have advanced for both banks and insurers, while also simplifying requirements to minimize disruption to customers and the financial system.
MAS proposes to enhance the assessment of director independence, particularly in scenarios where directors have connections to management, affiliated corporations, or hold substantial shares. The regulator plans to boost the minimum board size and necessitate a majority of independent directors for domestically significant banks and insurers, alongside full banks.
MAS aims to mandate approval for additional crucial appointments, including the chairperson of the nominating committee for locally incorporated banks and insurers, and the chief information officer of domestic systemically important banks. These adjustments aim to foster a diverse array of perspectives and expertise, alongside independent oversight, as these institutions expand in scale and complexity.
Furthermore, MAS is contemplating the removal of the prerequisite for prior approval of particular board and senior management appointments for financial institutions deemed to have limited retail reach or reduced systemic importance. This measure intends to maintain regulatory requirements as risk-appropriate, preventing the imposition of unnecessary burdens where such approvals are deemed unnecessary. The public can submit feedback on these proposed changes via an online FormSG link by December 9.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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