The Monetary Authority of Singapore (MAS) has proposed a set of measures to make senior managers in financial institutions (FIs) accountable in case of lapses.
Under the measures proposed, financial institutions will be required to identify senior managers in charge of core management functions, specify their individual accountability, and hold them individually responsible for the actions of their staff and the business.
Financial institutions will also be required to ensure that senior managers are fit and proper for their roles.
MAS particularly called for better oversight of employees in material risk functions and said that these employees should have an appropriate incentive structure and risk governance.
The financial regulator has also called for implementation of effective incentive systems and feedback channels including whistle-blowing mechanisms.
It said that FIs should have proper policies and processes in place to facilitate regular monitoring and reporting of conduct issues. The consultation will run till 25 May 2018.
MAS deputy managing director of financial supervision Ong Chong Tee said: “Clear accountability and proper conduct are important elements of good governance and sound business practice. Persistent misconduct and a lack of individual accountability by persons in charge will erode public confidence in our FIs.
“We expect the boards and senior management of FIs to instil a strong culture of responsibility and ethical conduct.”