MAS Consultation Paper on Revised Notices for Misconduct Reporting (19 April 2022)

Previously on 6 July 2018, MAS issued a consultation paper to seek feedback on proposed changes to the misconduct reporting requirements. MAS is now consulting on the legal amendments to the FAA Notice, IA Notice and SFA Notice to implement changes to the misconduct reporting requirements. The key changes include application of requirements to RFMC, categories of misconduct, reporting timeline (21 days), requirements on submission of investigation and police report, provision of report to representatives, and use of MAS’ prescribed report format. Below is a summarized process flow for reference.

 Initial Reporting

1. “misconduct” means—(a) any act relating to any contravention of the market conduct provisions under Part 12 of the Act, such as involvement in prohibited conduct or insider trading as set out in Part 12 of the Act; or (b) any act involving fraud, dishonesty, illegal monetary gains, or any offence of a similar nature, such as cheating, forgery, dishonest misappropriation of monies, criminal breach of trust, bribery, money laundering and tax evasion.
2. Include the (a) name of the police officer investigating the case; (b) the status of the police investigation and criminal proceedings (if any), including any outcome or result.

Update Reporting

3. “significant development” includes but is not limited to — (a) the lodging of a police report by the CMI on the alleged misconduct; (b) the completion of the CMI’s internal investigations into the alleged misconduct; (c) the taking of any corrective action by the CMI, in respect of the alleged misconduct; (d) the taking of any further action by the CMI following an appeal against any corrective action; and (e) the CMI being notified or made aware, through any source, of the outcome of police investigations or criminal proceedings (if any) in respect of the alleged misconduct.
4. Include the (a) name of the police officer investigating the case; (b) the status of the police investigation and criminal proceedings (if any), including any outcome or result.

Provide report to representative

For details, please refer to https://www.mas.gov.sg/publications/consultations/2022/consultation-on-revised-notices-on-misconduct-reporting-requirements

Disclaimer: The information, views or opinions expressed are provided for general information and should not be relied upon as legal or professional advice.