Succession plans at financial firms part of new accountability guidelines from MAS

Published Thu, Sep 10, 2020 · 09:50 PM

Singapore

FRESH guidelines from the Singapore regulator on the financial industry state that most financial institutions should have a succession plan that is "regularly reviewed and updated".

Such a plan must identify potential candidates in the pipeline, and set out appropriate handover policies and procedures to smoothen transitions in the senior management team, showed the guidelines on individual accountability and conduct (IAC) set out by the Monetary Authority of Singapore (MAS) on Thursday.

These IAC guidelines are about two years in the making, and will apply in full to all financial institutions unless they are exempted or if the financial firms have fewer than 50 in headcount.

In ensuring sound corporate culture and conduct in the financial industry, MAS said it is looking to shape ethical business practices, as well as prudent risk-taking behaviour and robust risk management. The IAC guidelines supplement the existing regulatory fra…