Singapore legislation

Regulation 14

of Securities and Futures (Corporate Governance of Approved Exchanges, Approved Clearing Houses, Licensed Trade Repositories and Approved Holding Companies) Regulations 2024

Regulation 14

Audit Committee

Subregulation 1

Subject to paragraph (4) and regulations 5(3) and 19, a regulated institution must have an Audit Committee comprising —

(a)

at least 3 directors of the regulated institution, all of whom are independent from management and business relationships with the regulated institution; and

(b)

at least a majority of directors (including the chairperson of the Audit Committee) who are independent directors.

Subregulation 2

The Audit Committee, in addition to such other responsibilities as may be determined by the board of directors or provided under written law, is responsible for the adequacy of the external and internal audit functions of the regulated institution, including reviewing the scope and results of audits carried out in respect of the operations of the regulated institution and the independence and objectivity of the regulated institution’s external auditors.

Subregulation 3

The Audit Committee must maintain records of all its meetings.

Subregulation 4

If a member of the Audit Committee resigns, ceases to be a director or for any other reason ceases to be a member of the Audit Committee —

(a)

the regulated institution must notify the Authority of the event within 14 days after the occurrence of the event; and

(b)

if this results in a breach of paragraph (1), the board of directors must, within 3 months after that event, take such steps as may be necessary to rectify the composition of the Audit Committee in accordance with that requirement.