On 9 November 2021, the Monetary Authority of Singapore (“MAS“) published revised Guidelines on Corporate Governance (“2021 CG Guidelines“) for financial holding companies, banks and insurers incorporated in Singapore (collectively, “FIs“).
This follows an earlier MAS consultation in May 2021. The CG Guidelines provide guidance on best good practices on corporate governance that FIs should observe. It comprises the Principles and Provisions of the Code of Corporate Governance 2018 (“CG Code“) which apply to companies listed on the Singapore Exchange Securities Trading Limited (“SGX-ST“) as well as additional guidelines prescribed by MAS having regard to the unique characteristics of the businesses of banks and insurers.
Singapore-incorporated banks and insurers which are listed on SGX-ST are already required to comply with the Principles of the CG Code. Among other changes set out in the 2021 CG Guidelines, Singapore-incorporated banks, Tier 1 insurers and designated financial holding companies that own a Singapore-incorporated bank or Tier 1 insurer are now expected to observe most of the Principles of the CG Code even though they are not listed on SGX-ST. Tier 2 insurers and other designated financial holding companies are also expected to observe the Principles or explain any variance in their annual reports or on their company websites.
This Update highlights the main revisions in the 2021 CG Guidelines.
For more information, click here to read the full Legal Update.
