MAS Consults on Revisions to Corporate Governance Requirements for Banks & Insurers Incorporated in Singapore

The Monetary Authority of Singapore (“MAS“) is seeking feedback on proposed revisions to the corporate governance requirements for financial holding companies, banks, direct insurers, reinsurers and captive insurers which are incorporated in Singapore in the Consultation Paper titled “Consultation Paper on Revisions to the Guidelines on Corporate Governance” issued on 7 May 2021. 

The MAS Guidelines on Corporate Governance (“CG Guidelines“) provide guidance on best good practices on corporate governance that financial institutions should observe. The CG Guidelines comprise the principles and provisions of the Code of Corporate Governance which apply to all companies listed on the SGX-ST (including banks and insurers incorporated in Singapore) as well as additional guidelines for locally-incorporated banks and insurers (“FI-specific Guidelines“).

This Update highlights the following main proposed revisions MAS is seeking feedback on:

• Compliance with the Principles of the Code of Corporate Governance in the CG Guidelines;
• Revision of FI-specific Guidelines relating to the roles and responsibility of the board of directors of financial institutions, remuneration practices, documentation of unresolved concerns of independent directors, and appointment of non-directors to the Board Risk Committee; and
• Inclusion of certain fundamental corporate governance requirements as statutory requirements in the Banking (Corporate Governance) Regulations 2005 and Insurance (Corporate) Governance Regulations 2013.

The consultation ends on 18 June 2021.