issued Corporate Governance Regulations on corporate
governance to locally incorporated banks, financial
holding companies and significant insurers (ie
direct life insurers with total fund asset size
of at least S$5 billion) on 8 September 2005. Together
with these regulations, MAS also issued Guidelines
on Corporate Governance to all locally-incorporated
banks and financial holding companies as well as
all direct insurers. The issuance of the Corporate
Governance Regulations and Guidelines reflect MAS’ ongoing
commitment to promote sound corporate governance
practices in Singapore’s banking and insurance
sectors, and to align them with global best practices.
The Banking (Corporate Governance) Regulations
and the Insurance (Corporate Governance) Regulations,
which are mandatory, form the minimum corporate
governance standards required of financial institutions.
The Regulations include requirements on the:
||Composition of the Board of
Directors and Board committees in relation
to independence from substantial shareholders,
management and business relationships.
||Establishment, composition and responsibilities
of various Board committees.
||Separation of roles for the Chairman of
the Board and Chief Executive Officer.
Banks and significant insurers are given until
their respective annual general meetings in 2007
to comply with the Regulations.
The Guidelines on Corporate Governance are adopted
from the Code of Corporate Governance issued
by the Council of Corporate Disclosure and Governance.
They are best practice guidelines on the roles
and responsibilities of board and management,
risk management and internal controls. Banks
and direct insurers have been strongly encouraged
to adopt the Guidelines, which will also take
effect from the institutions’ annual general
meetings in 2007.