SINGAPORE: Financial institutions in Singapore may be required to set out clear policies and processes, such as establishing a whistle-blowing channel, to enforce conduct standards throughout the organisation.
This is one of the guidelines the Monetary Authority of Singapore (MAS) has proposed in a consultation paper published on Thursday (Apr 26).
The central bank stated in a media release that the guidelines are part of broader efforts to foster a culture of ethical behaviour and responsible risk-taking in the financial industry.
The move by MAS is part of a global regulatory trend where there is an increased focus on the manner financial services companies conduct their business.
In the consultation paper, MAS stated that poor culture is one of the root causes of several incidences of misconduct in the financial industry that have undermined public trust and confidence in financial institutions.
"Persistent misconduct and a lack of individual accountability by persons in charge will erode public confidence in our financial institutions.
AdvertisementAdvertisement"We expect the boards and senior management of financial institutions to instil a strong culture of responsibility and ethical conduct," said MAS' deputy managing director (financial supervision), Mr Ong Chong Tee.
Other proposed guidelines include requiring financial institutions to specify the individual responsibilities of senior managers, assess whether individuals are fit to take up a senior managerial role before being officially appointed and to implement an incentive system that motivates staff to conduct themselves ethically.
MAS is seeking feedback on these proposed guidelines, which can be found on its website, until May 25.
The central bank aims to issue them in the fourth quarter of this year.
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