Monetary Authority of Singapore Guidelines on Fit and Proper Persons – An Overview and Summary of Requirements

• By: Staff Editor
• Date: June 28, 2013

• The objective of this Guideline is to ensure that the relevant person performs the regulated activities efficiently, honestly, fairly and acts in the best interests of its or his stakeholders and customers.

• The criteria for considering whether a relevant person is fit and proper include:

1. Honesty, integrity and reputation;
2. Competence and capability;
3. Financial soundness

• The failure by a relevant person to meet any one of the above criteria should not lead to an automatic refusal of an application
• If a relevant person fails to satisfy MAS of his/her ability to meet a specific criteria; then his/her significance and relevance is dependent on:

1. The seriousness of the relevant person
2. The relevance of the failure to the duties and responsibilities assumed by the relevant person
3. The passage of time since the failure

• If the relevant person is an institution, it should satisfy MAS that:

1. All of its substantial shareholders meet the fit and proper criteria outlined in this guideline
2. Each of its directors and chief executive officer, or equivalent persons meet the fit and proper criteria outlined in this guideline
3. It has appropriate recruitment policies, adequate internal control systems and procedures to ensure the people who act on its behalf meet the fit and proper criteria of these Guidelines.

• If the relevant person is an exempt entity or a fund management company, it should satisfy to MAS that:

1. All of its following substantial shareholders or equivalent persons meet the fit and proper criteria of these Guidelines:
   • Those who directly or indirectly control at least 20% of the voting power or such equivalent decision-making  power
   • Those who directly or indirectly acquire or hold at least 20% of the issued shares or such equivalent share of ownership of the exempt entity
2. Each of its key officers meets the fit and proper criteria of these Guidelines
3. It has appropriate recruitment policies, adequate internal control systems and procedures to ensure the people who act on its behalf meet the fit and proper criteria of these Guidelines.

• Has been refused the right or restricted in its right to carry on any trade, business or profession for which a specific license, registration or other authorization is required
• Has been issued a prohibition order under any Act administered by MAS or has been prohibited from operating in any jurisdiction by any financial services regulatory authority
• Has been censured, disciplined, suspended or refused membership or registration by MAS or any other regulatory authority.
• Has been the subject of any complaint made reasonably and in good faith, relating to activities that are regulated by MAS
• Has been the subject of any proceedings of a disciplinary or criminal nature
• Has been convicted of any offence, or is being subject to any pending proceedings which may lead to such a conviction
• Has had any judgment associated with a finding of fraud, misrepresentation or dishonesty in any civil proceedings
• Has accepted civil liability for fraud or misrepresentation
• Has had any civil penalty enforcement action taken against it or him by MAS or any other regulatory authority
• Has contravened or abetted another person in breach of any laws or regulations, business rules or codes of conduct
• Has been the subject of any investigations or disciplinary proceedings
• Has been refused a fidelity or surety bond
• Has demonstrated an unwillingness to comply with any regulatory requirement
• Has been untruthful or provided false or misleading information to MAS
• In case the relevant person is carrying on business or is acting as a representative for providing credit rating services, he should observe the Code of Conduct for Credit Rating Agencies.

• Has satisfactory past performance or expertise with regard to its business or duties.
• Has a concurrent responsibility that gives rise to conflict of interest or interfere with ability to discharge of duties.
• Has satisfactory educational qualification or experience.
• Has satisfied the requirements stipulated in the Notice on Minimum Entry and Examination Requirements for Representatives of Holders of CMS License and Exempt Financial Institutions or Notice on Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers (as applicable)
• In case of Appointed Actuary or a Certifying Actuary:
  • Actuary should have satisfactory past performance or expertise indicating knowledge of the local life or general insurance market
  • An Appointed Actuary should be a Fellow of Singapore Actuarial Society (SAS)
  • A Certifying Actuary should be a member of the SAS and Fellow of an association recognized by the International Actuarial Association
• In case of a relevant person whose activity is regulated by MAS under the IA, the broking   staff of the relevant person should have:
  • satisfactory qualification or experience with respect to the nature of its duties
  • satisfied the requirements stipulated in the Notice on Minimum Standards and Continuing Professional Development Requirements for Insurance Brokers and their Broking Staff

• Has been unable to fulfill any of its or his financial obligations
• Has entered into a compromise with its creditors that is still in operation
• Where applicant is an individual:
  • Is subject to an unsatisfied judgment debt
  • Has been the subject of a bankruptcy petition
  • Has been adjudicated a bankrupt and the bankruptcy is un-discharged
• Where applicant is a corporation:
  • Has been the subject of a winding up petition
  • Is in the course of being wound-up or otherwise dissolved

Additional Resources

Read the MAS Guidelines for Fit and Proper Persons in full.