Singapore: MAS consults on proposals to mandate reference checks

To limit “rolling bad apples” across the broader segment of the financial industry, MAS is consulting on its proposal to introduce mandatory reference checks to a broader segment of the financial industry, beyond representatives and insurance broking staff to include senior management.

In brief

Currently, capital markets services licence holders, exempt financial institutions, licensed financial advisers and exempt financial advisers are expected to conduct reference checks on representatives that they intend to appoint under the Securities and Futures Act (SFA) and Financial Advisers Act (FAA). The Monetary Authority of Singapore (MAS) has recently confirmed that it will introduce a new framework, mandating these financial institutions, as well as insurance brokers, registered fund management companies and venture capital fund managers, to perform reference checks with current and previous employers of proposed representatives or broking staff (as the case may be), based on a set of minimum mandatory information. Financial institutions will also be mandated to respond to reference check request within a specified timeline. Please refer to our client alert Singapore: MAS finalises changes to misconduct reporting regime for representatives for further details.


Contents

On 14 May 2021, MAS issued the Consultation Paper on Proposals to Mandate Reference Checks.1 MAS proposes to introduce similar mandatory reference check requirements to a broader segment of the financial industry, requiring financial institutions (FIs) to perform and respond to reference checks on senior managers and other employees, based on a set of minimum mandatory information and within a specified period of time. This consultation closes on 25 June 2021.

Click here to access the full version.


1 Please see: https://www.mas.gov.sg/publications/consultations/2021/consultation-paper-on-proposals-to-mandate-reference-checks

LOGO_Wong&Leow_Singapore

Baker McKenzie Wong & Leow is a member firm of Baker & McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner or equivalent in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Contact Information

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.