The regulatory arm of SGX aims to set up a whistleblowing office as part of its efforts to increase its regulatory presence to strengthen investor confidence and deter wrongdoing.
The Singapore Exchange Regulatory Committee (SGX RegCo) has laid out a roadmap to tighten regulatory oversight of listed companies, which includes enhancing how it handle whistleblowers and the way it conducts inspection of the market professionals it regulates, including auditors and sponsors.
«We want to assure the market that we take whistleblowing seriously and that we are committed to following up on any information that we received in accordance with a public policy that we are going to publish on our website, that deals with, among other things how we maintain the confidentiality of the information,» SGX RegCo CEO Tan Boon Gin said at a media briefing on Tuesday.
As part of its efforts, SGX would make sponsors of Catalist companies more accountable by going to them for immediate answers when companies have problems, and enhance the regulation of issue managers. Tan also highlighted the importance of enforcement actions for ensuring market confidence and to serve as a deterrent for would-be wrongdoers, saying «you can expect more to come.»
«Market Neighborhood Watch»
According to Tan, only a small minority of SGX's 750 listed companies are non-compliant. «But it only takes a small minority to impact the reputation of the entire market community. Our regulatory approach is to target the non-compliant companies and to avoid burdening compliant companies unnecessarily with over-inclusive rules that apply across the board,» he said in a speech at the launch of the Singapore Governance & Transparency Index, where he elaborated on the concept of a «market neighborhood watch.»
He encouraged companies that are ranked highly in the index to set an example for others on how to achieve better governance practices and standards. «You can be leaders in the community, advocates for change, and mentors to those who aspire to the same heights,» Tan said.
As part of its efforts to enhance trust and collaboration, in July, SGX tweaked its rules for stock delistings, empowering minority shareholders and increasing the premium for bidders to take over companies.
