The Monetary Authority of Singapore (MAS) has proposed tighter director independence rules for banks and insurers.
The public consultation also covers board composition, key appointments and designated financial holding companies.
MAS proposes refining the criteria for assessing whether directors are independent from management, business relationships and substantial shareholders.
Directors employed by, or with dealings involving, related corporations or affiliates would be deemed non-independent from management and business relationships.
Domestic systemically important banks and insurers, as well as full banks, would need larger boards with a majority of independent directors.
The changes aim to ensure boards have sufficient expertise and independent oversight as institutions grow in scale and complexity.
More key appointments would require MAS approval
Prior approval would extend to roles including the Chairperson of the Nominating Committee at locally incorporated banks and insurers, and the Chief Information Officer at domestic systemically important banks.
MAS cited the growing importance of succession planning, technology and information risk management.
For financial institutions assessed to have less retail reach or lower systemic importance, the regulator proposes removing approval requirements for certain board and senior management appointments.
Designated financial holding companies with a bank or insurer subsidiary would generally follow the same corporate governance standards as their subsidiaries.
The proposals build on revisions to MAS’ corporate governance guidelines in November 2021.
The regulator calibrates requirements according to each institution’s size, risk profile and impact on customers and the financial system.
Interested parties can submit feedback on the consultation paper through FormSG by 9 December 2026.
Featured image: Edited by Fintech News Singapore, based on image by MAS
