MAS sets standards for accountability of financial managers

It launched a public consultation for 3 guidelines that FIs should follow.

The Monetary Authority of Singapore (MAS) created three guidelines for holding senior managers accountable in financial institutions (FIs).

According to an announcement, they are not designed to be prescriptive. “It is ultimately the responsibility of each FI to hold its senior managers accountable for their actions and ensure proper conduct amongst their employees,” MAS said.

The first guideline said that FIs should identify senior managers who are responsible for core management functions and clearly specify their individual accountabilities. Moreover, the FI’s management structure and reporting relationships should also be clear and transparent.

Second, FIs should identify employees who have the authority to make decisions or conduct activities that can significantly impact the FI’s safety and soundness, or cause harm to a significant segment of the FI’s customers or other stakeholders.

Lastly, FIs should have in place a framework that promotes and sustains the desired conduct among employees. “The conduct framework should articulate the standards of conduct expected of all employees and be effectively communicated and enforced throughout the organisation. Policies and processes should be implemented to ensure regular monitoring and reporting of conduct issues to the board and senior management,” MAS added.

MAS also said that there should also be incentive systems and feedback channels, such as whistleblowing mechanisms, in place.

FIs’ progress in implementing the guidelines will be monitored through MAS’ regular supervisory engagements.

MAS is seeking feedback on the guidelines until 25 May 2018.