In summary:
(a) There will be changes to the list of reportable misconduct of representatives and broking staff (collectively, "Representatives") under the relevant MAS Notices.3
(b) MAS will expand on its expectations on the rigour and quality of FIs’ investigations into misconduct committed by Representatives.
(c) There will be changes to the reporting forms, comprising a misconduct report and an investigation report, as well as the reporting timelines.
(c) FIs will be required to extend copies of misconduct reports filed with the MAS to the Representatives.
(d) FIs will be mandated to carry out and respond to reference checks on proposed Representatives, with their previous or current employers, under a common standard framework.
Further details on the above changes, and other related changes, are set out below.
The new requirements follow a series of proposals aimed at enhancing fitness and propriety and individual accountability. These include the new Guidelines on Individual Accountability and Conduct,4 which will come into effect on 10 September 2021.
Further, on 14 May 2021, MAS also issued a Consultation Paper on Proposals to Mandate Reference Checks,5 proposing to extend the mandatory reference check to a broader segment of the financial industry, and on a broader segment of employees. This consultation closes on 25 June 2021. A summary of this Consultation may be found in our client alert Singapore: MAS consults on proposals to mandate reference checks.
Click here to access the full version.
1 Please see: https://www.mas.gov.sg/-/media/MAS/News-and-Publications/Consultation-Papers/2021/Response-to-Revisions-to-Misconduct-Reporting-and-Reference-Checks-Requirements.pdf
2 Please see our earlier Alert: MAS proposes to standardise misconduct reporting and reference check details for a summary of these proposals.
3 Notice SFA 04-N11 under the Securities and Futures Act , Notice FAA-N14 under the Financial Advisers Act, and Notice 504 under the Insurance Act
4 Please see: https://www.mas.gov.sg/regulation/guidelines/guidelines-on-individual-accountability-and-conduct
5 Please see: https://www.mas.gov.sg/publications/consultations/2021/consultation-paper-on-proposals-to-mandate-reference-checks#:~:text=This%20consultation%20seeks%20views%20on,a%20specified%20period%20of%20time.
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