SGX RegCo expands enforcement powers, requires issuers to introduce whistle-blowing policy

SINGAPORE Exchange Regulation (RegCo) is broadening its range of enforcement powers and will require issuers to implement a whistleblowing policy, following feedback from a public consultation.

From Aug 1, 2021, SGX RegCo will have the powers to issue a public reprimand and require an issuer to comply with specific (non-appealable) conditions.

It will also be able to prohibit an issuer from tapping the market for a period of time or until the conditions are fulfilled; prohibit any issuer from appointing or reappointing a director or executive officer for up to three years; and require a director or executive officer to resign. These are appealable before a Listings Appeals Committee.

Such powers are exercisable in situations where the director or executive officer is being investigated or is the subject of proceedings for breaching any relevant laws, regulations and rules relating to fraud, dishonesty, the securities or futures industry, corruption or breaches of fiduciary duties.

Heftier sanctions, such as fines, will remain under the purview of the independent listings disciplinary committee.

In addition, SGX RegCo will require all issuers to maintain a whistleblowing policy, where the identity of the whistleblower is kept confidential and the individual is protected from reprisal, it said.

Chief executive of SGX RegCo, Tan Boon Gin, said: "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."

Issuers will need to announce in their annual reports that the whistleblowing policy is in place for financial years starting Jan 1, 2021, as well as list how they have complied with requirements, such as independent oversight of the policy and protection of the whistleblower's identity. This requirement will kick in from Jan 1, 2022 and will apply to annual reports published after that date.