Singapore regulator floats guidelines to boost FIs' ethics, accountability

Senior managers responsible for core functions should be identified.

The Monetary Authority of Singapore (MAS) has released guidelines to reinforce ethical behaviour and accountability in financial institutions (FIs), a statement read.

The Guidelines on Individual Accountability and Conduct discusses MAS’ expectations through five high level outcomes for FIs. First, senior managers responsible for managing and conducting core functions should be clearly identified.

The second outcome talks about senior managers being fit for their roles, and taking responsibility for their employees’ actions and business conducts. Third, the FI’s governance framework props up senior managers’ performance of their roles with a clear and transparent structure and reporting.

Fourth, material risk personnel should be fit for their roles and subject to risk governance. Lastly, the FI should have a framework that upholds desired conduct amongst employees.

A specific guidance and a set of FAQs have also been released to help FIs achieve these outcomes.

FIs should also promote a culture of ethical behaviour by boosting practices in other areas set out in the Information Paper on Culture and Conduct Practices of Financial Institutions. These additional areas include hiring, communication channels, monitoring and assessment, and performance management.

The regulator will engage FIs, their boards, senior management and other employees on the adequacy and effectiveness of their culture and conduct practices through its ongoing supervision.