Singapore – MAS consults on revision to misconduct reporting requirements and proposals to mandate reference checks for representatives
On 6 July 2018, the Monetary Authority of Singapore (“MAS”) issued a consultation paper (the “CP”) on (a) revisions to misconduct reporting requirements, and (b) proposals to mandate reference checks for representatives. The proposals in the CP impact Singapore-licensed financial institutions (“FIs”) whose representatives conduct regulated activities under the Securities and Futures Act (Cap. 289 of Singapore) (“SFA”) and/or the Financial Advisers Act (Cap. 110 of Singapore) (“FAA”) and/or carry on insurance broking activities under the Insurance Act (Cap. 142 of Singapore) (“IA”).
The publication of the CP reinforces the importance the MAS attaches to ensuring that they are promptly informed of any misconduct on the part of representatives which FIs appoint on an ongoing basis, and represents a constructive move by the MAS to standardise the ways in which FIs carry out their misconduct reporting obligations and enhance the standard of investigations conducted by FIs. This CP also demonstrates the willingness of the MAS to take in broad and holistic feedback from the industry.
The consultation closes on 6 August 2018.
This note provides an overview of the MAS’ proposals, the key issues which may arise on their practical implementation and an international comparison with equivalent regimes in the U.K and Hong Kong.