Singapore legislation
Regulation 28
of Securities and Futures (Organised Markets) Regulations 2018
Regulation 28
Criteria for determining whether director or executive officer failed to discharge duties
For the purposes of section 43(4) of the Act, the Authority must, in determining whether a director or an executive officer of an approved exchange or a Singapore recognised market operator has failed to discharge the duties of his or her office or employment, have regard to the following criteria:
whether the individual has taken reasonable steps to ensure the proper functioning of the approved exchange or Singapore recognised market operator, as the case may be;
whether the individual has taken reasonable steps to ensure the compliance of the approved exchange or Singapore recognised market operator (as the case may be) with all relevant laws of any jurisdiction in which it is incorporated or in which it operates;
whether the individual has taken reasonable steps to specify, and ensure compliance with, written policies on all operational areas of the approved exchange or Singapore recognised market operator (as the case may be), including financial policies, accounting and internal controls, internal auditing policies and policies ensuring compliance with all relevant laws of any jurisdiction in which it is incorporated or in which it operates;
whether the individual has taken reasonable steps to identify, monitor and address the risks associated with the business activities of the approved exchange or Singapore recognised market operator, as the case may be;
whether the individual has taken reasonable steps to ensure that the business activities of the approved exchange or Singapore recognised market operator (as the case may be) are subject to adequate internal audit;
whether the individual has taken reasonable steps to oversee, by setting out proper delegation limits and risk management controls, the financial undertakings and exposure to risks of any nature of the approved exchange or Singapore recognised market operator, as the case may be;
whether the individual has taken reasonable steps to ensure that the approved exchange or Singapore recognised market operator (as the case may be) maintains written records of the steps taken by it to monitor compliance with its policies, the limits on discretionary powers and its accounting and operating procedures;
whether the individual has taken reasonable steps to ensure that every report, return or statement submitted by the approved exchange or Singapore recognised market operator (as the case may be) to the Authority is complete and accurate.