MAS Consults on the Revisions to Misconduct Reporting Requirements
MAS consults on the revisions to misconduct reporting requirements and the proposals to mandate reference checks for representatives. Part A of the paper proposes revisions to the scope of entities and the requirements on reporting of misconduct by representatives. Part B of the paper sets out the proposed requirements for financial institutions to conduct and respond to reference checks on representatives. Comments are requested by August 06, 2018.
The proposed misconduct report template is included in Annex B and the proposed investigation report template is included in Annex C to the consultation paper. The paper proposes the following:
- Scope to include Registered Fund Management Companies
- Revisions to the categories of reportable misconduct
- Financial institutions to update MAS on the outcome of police investigations
- Requirement by financial institutions to notify representatives when they are under investigation and provide them with a copy of the misconduct report filed with MAS
- Enhanced standards for financial institutions' investigation processes and the requirement for financial institutions to submit investigation reports to MAS in a prescribed format
- Requirement by financial institutions to conduct reference checks on prospective representatives and to share information on their representatives, in response to the reference check requests
Financial institutions are currently required under the Securities and Futures Act (SFA), Financial Advisers Act (FAA), and Insurance Act (IA) to lodge a report with MAS when they become aware of any misconduct committed by their representatives or broking staff; the misconduct includes acts involving fraud, dishonesty, inappropriate advice, misrepresentation, or inadequate disclosure of information to customers. Financial institutions are also expected to have in place a robust and transparent process to investigate possible wrong-doings by their representatives and take appropriate disciplinary actions against the representatives, for any misconduct committed.
Comment Due Date: August 06, 2018
Keywords: Asia Pacific, Singapore, Insurance, Securities, Misconduct Reporting Requirements, Misconduct Risk, SFA, MAS
Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards