The Monetary Authority of Singapore (MAS) has opened a public consultation on targeted changes to the corporate governance rules for banks, insurers and their designated financial holding companies (DFHCs). The proposals, set out in Consultation Paper P016-2026 published on 30 September 2026, would raise minimum board sizes, tighten the test for director independence and bring more senior roles under MAS' prior approval. Feedback is due by 11.59pm on 9 December 2026.
In its media release, MAS described the exercise as part of a regular review, aimed at patching up areas where the industry has changed since the last review and easing requirements where the institution's footprint is small. The proposals also build on the revisions MAS made to its Guidelines on Corporate Governance in November 2021.
"Strong corporate governance remains fundamental to well-run and resilient FIs. Banks and insurers play particularly critical roles in safeguarding depositor and policyholder interests," by the Monetary Authority of Singapore
Bigger boards with more independent directors
The most visible change is to board size. Under the paper, domestic systemically important banks (DSIBs) and their DFHCs would need at least seven directors. Full banks, domestic systemically important insurers (DSIIs) and their DFHCs would need at least five. DSIBs, DSIIs and full banks would also need a majority of independent directors on their boards.
MAS explained that the new minimums reflect the number of board committees each institution must run, the membership and independence rules for each committee, and tighter conditions on who may chair the audit and risk management committees. Larger boards, it said, would spread committee work more evenly so that directors have enough time for each role.
A stricter test for independence
MAS also wants to sharpen how institutions decide whether a director is independent of management, business relationships and substantial shareholders. Under the proposed test, a director employed by a related company or affiliate, or doing business with one, could no longer count as independent of management and business relationships.
The paper also closes a gap in the long-tenure rule. Today, a director loses independent status after serving on the board for nine consecutive years. MAS proposes to count tenure in aggregate, so a director who leaves and later returns would be treated as non-independent once the separate terms total 9 years. That mirrors how the SGX Listing Rules already treat long-serving directors, and it means a break in service would no longer reset the clock.
More roles need MAS approval, and some need fewer
Two new appointments would need MAS' sign-off before they take effect. Locally incorporated banks and insurers would have to obtain MAS approval when appointing or reappointing the chairperson of their Nominating Committee, given that committee's role in board renewal and succession. DSIBs and their DFHCs would also need approval for their Chief Information Officer. MAS defines that role by function, not title, so it covers a Chief Technology Officer or Head of IT who reports directly to the CEO and runs the bank's IT strategy, operations and technology risk.
For institutions with a modest retail customer base or limited importance to the system, MAS would no longer need to approve some board and senior management hires in advance, which it sees as cutting paperwork that adds little protection. DFHCs with a bank or insurer subsidiary would generally follow the same standards as that subsidiary.
Timing and what boards should do now
Most of the changes would come with a two-year transition period from the date the revised regulations take effect, because MAS recognises they may require changes to board and committee membership. A shorter list would apply as soon as the amended rules take effect. These include the aggregate nine-year independence limit, the expanded board and committee responsibilities, and the new prior approval requirements for banks and insurers, which MAS said largely reflect what institutions already do.
For boards, company secretaries and compliance teams at Singapore banks and insurers, the immediate work is a gap analysis. That means counting directors against the proposed minimums, rechecking each director's independence against the new related-corporation test, adding up past board terms for anyone who has served more than once, and checking whether the CIO and Nominating Committee chair roles will need MAS approval. The proposals sit alongside MAS' wider focus on governance and accountability, including its expectations on remediating repeat risk events.
Institutions and other interested parties can respond through the FormSG link on the MAS consultation page, which also carries draft amendments to the Banking Regulations, the Banking (Corporate Governance) Regulations 2005 and the Insurance (Corporate Governance) Regulations 2013.
