On Apr. 26, MAS proposed rule on senior manager accountability.
- Guidelines would be applicable to senior managers, within financial institutions.
- Objective to strengthen individual accountability and raise standard of conduct.
- Expectations of boards, senior management re individual conduct and behavior.
- Institution responsible to promote individual accountability of senior managers.
- Responsibilities to strengthen oversight of employees in material risk functions.
- Framework, policies, to embed standard of proper conduct among all employee.
- Provide flexibility to decide most appropriate ways to achieve desired outcome.
- Will monitor implementation progress through regular supervisory engagement.
- Identify senior managers who are responsible for core management functions.
- Clearly specify their individual accountabilities, ensure fit and proper for roles.
- Hold them responsible for actions of staff, and conduct of business in purview.
- Management structure and reporting relationships to be clear and transparent.
- Identify employees with authority of activities that impact safety or soundness.
- Embed Conduct Standards
- Have a framework to promote and sustain desired conduct among employees.
- Articulate conduct standards expected of employees and communicate in firm.
- Adopt policies for regular monitoring and reporting of conduct issues to board,
- Ensure incentive systems and feedback channels, e.g. whistleblowing, in place
- Provide firms with operational flexibility to determine ways to achieve outcome.
- MAS will monitor firm progress in implementing guidelines by its engagements.
- Consultation period for responses until May 25, 2018.