Individual accountability in Financial Institutions (FIs) has already been a global concept for some years now and is becoming a regulatory focus area for global regulators.
In Singapore, the inaugural Enforcement Report released by Monetary Authority of Singapore (MAS) in March 2019 stated that 42 FIs had received fines in total of S$16.8 million for market abuse, financial services misconduct and money laundering-related breaches. In addition, over 750 notices were issued to various individuals, companies and FIs relating to breaches of rules and regulations.
In April 2019, MAS released a consultation paper on the proposed Guidelines on Individual Accountability and Conduct (“Guidelines”). These Guidelines are part of broader efforts to foster a culture of ethical behaviour and responsible risk-taking FIs.
Firms have taken the shift to greater individual accountability seriously because of the potential consequences on individual senior managers of a failure to do so. Some firms have undertaken large-scale reviews and updates of governance structures, management reporting structures, individual responsibilities, governance maps, and management information.
Read more about best practices for addressing and preventing financial misconduct and reckless risk taking in our latest publication Individual accountability and conduct.