MAS proposes new governance rules for banks and insurers

The Monetary Authority of Singapore (MAS) published a consultation paper on 30 September 2026 proposing amendments to corporate governance regulations for banks, insurers and designated financial holding companies.

The proposal covers director independence, board and board committee composition, and appointments of key principals. MAS has not specified in the supplied material when final rules would be issued or when any amendments would bind institutions.

Proposed banking requirements

Draft banking regulations would revise requirements for banks and financial holding companies, including board and committee composition and separation of the chairperson and chief executive officer roles. They would also prescribe appointments under section 53A(1)(d) of the Banking Act.

A domestic systemically important bank incorporated in Singapore would have prescribed appointments covering its chief financial officer, chief risk officer, chairperson of the Nominating Committee, all Nominating Committee members, head of treasury and chief information officer. For a full bank incorporated in Singapore outside that category, the listed appointments would include the chief financial officer, chief risk officer, chairperson of the Nominating Committee and all members of that committee.

The draft would also prescribe a maximum three-year term for a director or, subject to the stated conditions, the chairperson of the board under section 53A(5)(b). The proposal therefore addresses senior appointments and tenure as well as board structure.

The proposed definition of an independent director for a Singapore bank requires independence from management and business relationships with the bank, independence from any substantial shareholder and no continuous aggregate service of nine years or longer, whether before or after the bank receives its licence. The supplied text does not resolve how existing appointments would transition if the proposal is adopted.

Insurance and holding-company scope

The insurance draft would apply to all direct insurers and reinsurers established or incorporated in Singapore, except marine mutual insurers and Special Purpose Reinsurance Vehicles. Its independent-director definition uses the same core tests: independence from management and business relationships, independence from substantial shareholders and no continuous aggregate service of nine years or longer.

The supplied record does not establish new conduct or market-structure requirements for insurers, or a general rule for entities outside the stated application clause.

The consultation identifies governance requirements for a designated financial holding company with a Singapore-incorporated licensed insurer subsidiary, including director independence, board and committee composition and responsibilities. It separately identifies requirements for a designated financial holding company with a Singapore-incorporated bank subsidiary.

Boards and controlling shareholders can use the consultation period to review director tenure, independence assessments, committee composition and appointment maps for affected principals. Those are preparation steps, not current amendments. The record does not specify final transitional provisions, an implementation period or a MAS response date.

The consultation closes at 11.59 PM on 9 December 2026. Until MAS publishes its response or final instruments, the proposed requirements remain open to submissions; the final text will determine when any new obligations take effect.