Singapore, 29 November 2005...The Monetary Authority of Singapore (MAS) issued Corporate Governance Regulations ("Regulations") for Approved Exchanges, Designated Clearing Houses And Approved Holding Companies.
2 Currently, only the SGX group of companies ("SGX") operate approved exchanges, designated clearing houses and approved holding companies in Singapore.
3 The Regulations are modeled on the Corporate Governance Regulations for banks, financial holding companies and direct insurers issued on 8 September 2005. MAS' objective is to apply a common and high standard of corporate governance across SGX, banks and direct insurers as these institutions play an important role in the financial system and the economy.
The Regulations
4 The Regulations include requirements on the:
- Composition of the board of directors;
- Establishment, composition and responsibilities of various board committees;
- Separation of roles for the Chairman of the Board and Chief Executive Officer;
5 The main difference between this set of Regulations and the Regulations for banks, financial holding companies and direct insurers is the need to take into account SGX's distinctive regulatory role over its members. The definition of director independence has therefore been widened to include independence from members in addition to independence from business and management relationships.
Implementation
6 SGX will be given until its Annual General Meeting in 2007 to comply with the Regulations. (Click here for the Regulation (43 KB) )
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