MAS plans tighter board rules for S’pore banks, insurers

By the Editorial Team · Thursday, October 1, 2026

The Monetary Authority of Singapore has proposed stricter corporate governance rules for banks and insurers, including enhanced criteria for board independence, minimum director counts for major institutions, and regulatory approval for key executive appointments. These changes aim to bolster oversight and risk management in systemically important financial institutions while maintaining flexible requirements for smaller entities, with public consultation open until December 9.

The Monetary Authority of Singapore (MAS) has put forward proposals to tighten corporate governance requirements for banks and insurers incorporated in Singapore. The regulator is seeking public consultation on the updated rules as part of its ongoing effort to ensure that regulatory standards remain current and effective amid evolving risks and institutional complexities.

Announced on September 29, the proposed changes would impose stricter criteria on board composition, director independence, key executive appointments, and regulatory requirements for smaller financial institutions (FIs). MAS emphasized the critical role banks and insurers play in protecting depositor and policyholder interests, as well as supporting the broader economy.

Among the key proposals is a revision of the definition of director independence. In addition to existing criteria related to a director’s relationships with the institution, its subsidiaries, and substantial shareholders, MAS plans to extend the assessment to encompass ties with the FI’s parent and sister companies. The new framework would also consider business dealings involving directors’ immediate family members. Furthermore, directors who have served a cumulative term of nine years or more—rather than strictly continuous service—would be classified as non-independent.

Board size requirements would also be increased for systemically important financial institutions. Domestic systemically important banks (D-SIBs) such as DBS Bank, OCBC, UOB, Citibank, Maybank, Standard Chartered Bank, and HSBC would be required to have at least seven directors. Major full banks, domestic systemically important insurers—namely AIA, Income Insurance, Prudential, and Great Eastern—and their holding companies would need a minimum of five directors. Additionally, the majority of the board at these institutions would be expected to consist of fully independent directors, ensuring stronger oversight as these entities grow in scale and complexity.

MAS is also proposing that certain key appointments, including the chairperson of the nominating committee for local banks and insurers and the chief information officer for D-SIBs, would require prior regulatory approval. This underscores the increasing significance of succession planning and technology risk management within senior leadership. Conversely, the regulator plans to ease prior approval requirements for appointments at financial institutions with less systemic importance or limited retail reach, aiming to maintain a risk-proportionate regulatory framework.

Representatives from major banks have indicated they are reviewing the consultation paper and intend to provide feedback. A spokesperson for UOB noted their board nominating committee regularly assesses board composition to maintain an appropriate mix of skills and independence, highlighting that as of October 1, 2026, seven of their 11 directors will be independent. DBS also welcomed MAS’s continuing governance reviews and expressed a willingness to engage constructively on the proposals.

MAS noted that the proposed updates are intended to reinforce governance safeguards where risks have increased while streamlining requirements for smaller, less consequential entities. The consultation period is open until December 9, allowing industry participants and stakeholders to comment on the proposals.

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