MAS Sets Up Corporate Governance Advisory Committee to Promote Good Corporate Governance
Singapore, 12 February 2019… The Monetary Authority of Singapore (MAS) announced today the establishment of a Corporate Governance Advisory Committee (CGAC) to advocate good corporate governance practices among listed companies in Singapore. The permanent, industry-led body, will be chaired by Mr Bobby Chin, director of Singapore Telecommunications Ltd.
2 The formation of the CGAC was a recommendation by the Corporate Governance Council, that was set up to review the Code of Corporate Governance (CG Code) in 2018. The CGAC will be an integral part of the corporate governance ecosystem in Singapore. It will play an important role in levelling up corporate governance standards and practices and help to strengthen investors’ confidence in our capital markets and uphold Singapore’s reputation as a trusted international financial centre.
3 The CGAC will identify current and potential risks to the quality of corporate governance in Singapore, and take a leading role in advocating good corporate governance practices. It will also monitor international trends, revise the Practice Guidance to clarify the CG Code, and recommend updates to the CG Code. The CGAC will not carry regulatory or enforcement powers or provide opinion on ongoing cases and investigations. Singapore Exchange Regulation, the MAS, and the Accounting and Corporate Regulatory Authority remain responsible for taking regulatory actions against corporate governance-related breaches. The CGAC will work closely with these regulators to uphold corporate governance standards. More details of the CGAC’s role are provided in Annex A (332.2 KB).
4 The CGAC comprises members with diverse and extensive experience in corporate governance matters. They include directors on the boards of listed entities and members from key stakeholder groups such as large and small companies, institutional and retail investors, audit and legal professionals, academia and the media. The list of CGAC members is in Annex B (321.1 KB).
5 Mr Bobby Chin, CGAC Chairman said, “A culture of strong corporate governance is essential to support long term corporate performance. The changes introduced under the 2018 review of the CG Code have helped ensure that Singapore’s corporate governance framework kept pace with market developments. The effectiveness of the CG Code will require sustained commitment in both substance and form by companies and stakeholders. The CGAC, as an independent, standing industry-led body, is dedicated to supporting these efforts.”
The Corporate Governance Council (Council) was established by the MAS in February 2017 to review the CG Code, consider how the comply-or-explain regime could be made more effective, and propose mechanisms to monitor the progress made by listed companies in strengthening their corporate governance practices. The Council was dissolved on the publication of its final recommendations on 6 August 2018. Please refer to this link for further details on the Council’s recommendations.
MAS today launched a public consultation on its proposal to streamline the regulatory framework for fund managers. Specifically, the existing Registered Fund Management Companies (RFMCs) regime will be repealed, and existing RFMCs that are in operation will be approved as Licensed Fund Management Companies upon application.