SINGAPORE: Singapore Exchange Regulation (SGX RegCo) is consulting the market on changes to the Listing Rules governing enforcement actions for greater and swifter accountability, and clarity, in the securities market. “We are also proposing that all issuers have in place a whistleblowing policy,” a news release said.

The investing public can only continue to have trust and confidence in the market if they are assured that swift and appropriate enforcement against any listing rule breaches or malfeasance will take place. SGX RegCo’s current range of direct enforcement powers is mainly confined to private actions. These actions have been regularly meted out but always away from the public eye.

To be clear, public sanctions are also available. However, only the independent Listings Disciplinary Committee (LDC) can wield the powers for these sanctions. Challenges have also arisen from conflicts of interests when members try to form a hearing committee that satisfy quorum and independence requirements.

SGX RegCo is therefore proposing that we also have the powers to deal with cases that call for public sanctions that the LDC can hear, except the ones where fines may be imposed. A fine is the severest of disciplinary actions and the committee will continue to be the sole party to wield this power.

“We are also proposing that we acquire additional powers where an issuer under investigation must seek our approval before directors can be appointed or re-appointed to its board. Directors under investigation would similarly be subject to SGX RegCo’s approval prior to their appointment or re-appointment to the board of an issuer”.

SGX RegCo has been working closely with different segments of the market community to raise standards, and to detect and deal with misconduct or wrong-doing. Listed companies too can contribute to these efforts. We are therefore proposing that companies put in place and disclose arrangements to receive and investigate whistleblowing allegations as well as proper provisions for protection of the whistleblower within the company.

“SGX RegCo is acutely aware of the perception that few public enforcement actions have taken place in recent years. We are proposing to widen the scope of direct disciplinary actions available to us so as to speed up the disciplinary process. This will enhance its deterrent effect and together with the requirement for a whistle-blowing policy, ensure greater accountability of issuers and their relevant persons. Market clarity and confidence will be enhanced in the long run,” said Tan Boon Gin, CEO of SGX RegCo.