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Singapore’s central bank and top financial regulator is gathering feedback on proposed amendments to regulations governing reporting of financial misconduct.
According to the proposal by the Monetary Authority of Singapore (MAS), the misconduct reporting requirements will be extended to registered fund management companies. The requirements are currently applicable to capital markets services, licensed financial advisers and registered insurance brokers, the Singapore Business Review reported.
MAS wants to classify acts that involve illegal/improper monetary gains, such as money laundering, as financial misconduct, as these acts can lead to the erosion of trust in the financial system. Furthermore, it proposed revision of misconduct categories to clarify which acts must be reported to the central bank. The definition of “insider trading” will also be expanded to manipulation of securities markets and financial benchmarks.
“Acts of inappropriate advice, misrepresentation, or inadequate disclosure of information,” will be expanded to include gross negligence and other acts that have a negative impact on the client’s interest or impinge on the fitness and propriety of the representative.
Financial institutions will be required to notify MAS of the outcome of police investigations within 14 days of it coming to the company’s awareness. This is to allow the regulator “to conduct timely assessment on whether to take regulatory or supervisory action on the representative upon conclusion of police investigations,” MAS said.
Representatives under registration must be notified by their financial institution when they are under investigation and given a copy of the misconduct report, with the exception of cases where the disclosure could negatively affect the investigation.
