Governance Briefing — March 29, 2024
The Monetary Authority of Singapore consulted on revisions to corporate governance guidelines for banks, insurers, and financial holding companies, proposing climate expertise and diversity requirements.
Executive briefing: On 29 March 2024 the Monetary Authority of Singapore (MAS) issued Consultation Paper P013-2024 proposing revisions to the corporate governance guidelines for Designated Financial Holding Companies, banks, and direct insurers. MAS plans to reinforce board diversity targets, climate competence, and accountability mechanisms.
Key governance signals
- Board diversity plans. Proposed guidelines would require boards to set diversity targets, disclose progress, and explain remediation where gaps persist.
- Climate competence. MAS suggests boards maintain adequate climate-related expertise and oversee integration of environmental risk within strategy and risk appetite.
- Accountability and succession. The consultation seeks enhanced documentation of senior management accountability, succession planning, and ongoing suitability assessments.
Action checklist
- Provide consultation feedback outlining current diversity metrics, climate governance capabilities, and implementation timelines.
- Review board skills matrices and training plans to evidence climate risk expertise and succession coverage.
- Update accountability frameworks, responsibility maps, and performance evaluations in anticipation of revised guidelines.
Sources
Zeph Tech advises Singapore financial institutions on consultation responses, board capability building, and accountability frameworks ahead of MAS guideline revisions.