SGX RegCo Increases Enforcement Powers, Issuers to Implement Whistleblowing Policy
24th June 2021 | Singapore
Singapore Exchange Regulation (SGX RegCo) has increased its enforcement powers and requiring all issuers to implement whistleblowing policy. Effective on 1st August 2021, SGX RegCo will have the powers to issue public reprimand, require an issuer to comply with specified conditions, and prohibit an issuer from using market facilities, appointing or reappointing a director or an executive officer for up to 3 years, and a director or an executive officer to resign.
” SGX RegCo Increases Enforcement Powers, Issuers to Implement Whistleblowing Policy “
SGX RegCo Public Consultant on Listing Rules
The new changes to the Listing Rules were implemented following a public consultation on changes to the Listing Rules that market participants broadly supported. The changes will pave the way towards swifter enforcement outcomes, and reinforce confidence in Singapore’s capital markets, act as a greater deterrent against malfeasance, and enhance the protection of investors.
SGX RegCo will, from 1 August 2021, have the powers to:
- Issue a public reprimand and require an issuer to comply with specified conditions. These actions are non-appealable.
- Prohibit an issuer from accessing the facilities of the market for a specified period or until fulfilment of specified conditions, prohibit any issuer from appointing or reappointing a director or an executive officer for up to 3 years, and require a director or an executive officer to resign. These are appealable before the Listings Appeals Committee.
The powers are exercisable in situations where the director or executive officer is being investigated or is the subject of proceedings for contraventions of any relevant laws, regulations and rules (including those of any professional or regulatory bodies) relating to fraud, dishonesty, the securities or futures industry, corruption or breaches of fiduciary duties.
More severe sanctions, such as fines, will continue to be reserved for the independent Listings Disciplinary Committee.
SGX RegCo Whistleblowing Policy
SGX RegCo will also mandate all issuers to establish and maintain a whistleblowing policy where the identity of the whistleblower is kept confidential and the individual is protected from reprisal.
Issuers will be required to state in their annual reports that such a policy is in place for financial years commencing from 1 January 2021, and explanation of how they have complied with key requirements such as independent oversight of the policy and commitment to protection of the identity of the whistleblower. This requirement will take effect from 1 January 2022 and apply to annual reports published from this date.
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SGX RegCo’s responses to the feedback received on the public consultation on Enhancements to Enforcement and Whistleblowing Frameworks can be found here.
Tan Boon Gin, CEO of SGX RegCo
“The market has spoken and is demanding more public accountability more quickly. Particularly in uncertain times, we need to give investors faster answers and greater assurance. Speedy enforcement is also a stronger deterrent that will complement our other pre-emptive efforts such as our new whistleblowing framework.”
Related:
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About Singapore Exchange
Singapore Exchange is Asia’s leading and trusted market infrastructure, operating equity, fixedincome, currencies and commodities markets to the highest regulatory standards. As Asia’s most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40% of listed companies and over 80% of listed bonds originating outside of Singapore.
SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN and offers commodities and currency derivatives products. Headquartered in AAA- rated Singapore, SGX is globally recognised for its risk management and clearing capabilities.
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