SGX RegCo proposes to require listed firms to have a Singapore-registered auditor

The regulator aims to strengthen auditor accountability and investor confidence.

The Singapore Exchange Regulation (SGX RegCo) has launched a consultation for its proposal to require all listed companies to appoint an auditor registered by the Accounting and Corporate Regulatory Authority (ACRA), according to an SGX filing.

Audits performed for all listed issuers will be subject to ACRA's regulatory oversight. Foreign issuers who wish to appoint foreign auditors are required to appoint an ACRA-registered auditor to act as a joint auditor.

"Requiring all listed companies to appoint a Singapore-registered auditor and giving SGX RegCo the power to appoint an additional auditor will also increase the accountability of auditors and improve investor confidence in audits," said SGX RegCo CEO Tan Boon Gin.

Further, the regulator may direct a company to appoint an additional auditor to provide a second opinion or to act as a joint auditor. SGX RegCo is still seeking feedback on which circumstance this will apply.

The regulator is also planning to require issuers and listing applicants to comply with the SISV standards for the valuation of properties in Singapore. Here, disclosed summary property valuation reports must contain the information required for prospectus and circulars as set out under the SISV Practice Guide.

For overseas properties, valuation may be carried out in accordance with the SISV or the International Valuation Standards (IVS) set by the IVS Council.

Valuers will also be required to have at least 5 years' relevant experience in conducting valuations for the type of property being valued, and to be a member of the Singapore Institute of Surveyors and Valuers (SISV) or a similar professional body in the home jurisdiction which can discipline and revoke the membership of the valuer.

The consultation is open until 14 February.