MAS issues a Consultation Paper on proposed scope of IAC Guidelines
The Monetary Authority of Singapore (MAS) published yesterday a Consultation Paper concerning the proposed scope of Guidelines on Individual Accountability and Conduct (IAC Guidelines).
Consultation Paper on the Proposed Scope of Application of the IAC Guidelines
On 26 April 2018, MAS issued a Consultation Paper on Guidelines on Individual Accountability and Conduct, and this consultation closed on 25 May 2018. The Guidelines aim to promote the accountability of senior managers, strengthen oversight of material risk personnel, and reinforce standards of proper conduct among all employees. A scope of applicability was proposed in this first consultation.
The new Consultation Paper is an extension of the one from last year, and MAS proposes to extend the scope of the IAC Guidelines to all Financial Institutions (FIs) regulated by MAS, including:
- a person licensed under the BA to carry on the business of issuing credit cards or
- charge cards in Singapore;
- a registered insurance broker under the IA;
- a designated financial holding company under the Financial Holding Companies Act 2013 (Act 13 of 2013);
- a registered fund management company exempted from holding a capital markets services license under paragraph 5(1)(i) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR);
- a person approved under the section 289 of the SFA to act as a trustee of a collective investment scheme which is authorized under section 286 of the SFA and constituted as a unit trust;
- a recognized market operator that is incorporated in Singapore under the SFA;
- a recognized clearing house that is incorporated in Singapore under the SFA;
- the Central Depository System as defined under the SFA;
- a licensed trade repository under the SFA;
- an authorized benchmark administrator or exempt benchmark administrator under the SFA;
- an authorized benchmark submitter or designated benchmark submitter under the SFA;
- an operator of designated payment systems under the Payment Systems (Oversight) Act (Cap. 222A) (PSA);
- a holder of an approved stored value facility under the PSA;
- a licensee and regulated entity under the Payment Services Act 2019;
- a licensee under the Money-changing and Remittance Businesses Act (Cap. 187); and
- a licensed credit bureau under the Credit Bureau Act 2016
All Financial Institutions included in the scope of the Guidelines are expected to work towards the outcomes set up in it, but MAS has recognized that smaller companies have usually a clearer accountability thanks to a simpler decision-making structure. As such, MAS will not ordinarily expect smaller FIs, such as those with a headcount of less than 20, to adopt the specific guidance described in the IAC Guidelines.
Financial Institutions and other interested parties may submit their comments to MAS about the proposed extension of scope and the proposed headcount threshold of less than 20 to identify smaller firm before 22 July 2019.
If you are a registered fund management company exempted from holding a capital markets services license under paragraph 5(1)(i) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations, a holder of a capital markets services license under the Securities and Futures Act, a financial adviser licensed under the Financial Advisers Act, a trust company licensed under the Trust Companies Act, a registered insurance broker under the Insurance Act, a licensee and regulated entity under the Payment Services Act 2019, or a licensee under the Money Changer Remittance Business Act, we at Argus are happy to collect your response and submit it on your behalf to the MAS before the deadline.
Please click here to read the paper and submit a response.