SINGAPORE - The Singapore Exchange's (SGX) regulatory arm will have an expanded range of enforcement powers involving public sanctions from Aug 1.
The revamp announced on Thursday (June 24) also requires listed firms to have a whistle-blowing policy in place that includes protection for people coming forward.
The new enforcement powers will allow Singapore Exchange Regulation (SGX RegCo) to issue public reprimands and require a firm to comply with specified conditions. There will be no appeal against these actions, the SGX said.
It will also be able to prohibit a listed firm from accessing market facilities for a set period or until certain conditions are met.
The new powers will allow it to prohibit a company from appointing or reappointing a director or an executive officer for up to three years. A director or an executive officer can be forced to resign as well. These actions can be appealed.
Until the new powers kick in on Aug 1, public sanctions will continue to be meted out by the independent listings disciplinary committee, which was set up in 2015 and consists of experienced market professionals.
Committee members have to recuse themselves from cases due to conflicts of interest, so decisions are delayed, prompting the revamp of the enforcement framework, which followed a public consultation.
More severe sanctions, such as fines, will continue to be reserved for the independent listings disciplinary committee, said the SGX.
The revamp also requires listed firms to have a policy in place that shields the identity of whistle-blowers and protects them from reprisal.
This policy must be established for financial years commencing Jan 1, 2021.
Annual reports published from Jan 1, 2022, must explain how a firm has complied with key requirements regarding whistle-blowers.
SGX RegCo chief executive Tan Boon Gin said: "The market has spoken and is demanding more public accountability more quickly. Particularly in uncertain times, we need to give investors faster answers and greater assurance.
"Speedy enforcement is also a stronger deterrent that will complement our other pre-emptive efforts such as our new whistle-blowing framework."
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