Recommendation 86

In response to these concerns, witnesses pointed to the approaches taken by other jurisdictions, which maintain accountability whilst permitting greater flexibility. The City of London Corporation told us that the Monetary Authority of Singapore (MAS) introduced the Guidelines on Individual Accountability and Conduct, 146 drawing on the UK’s SM&CR. 147 However, they noted that: “MAS states that financial institutions should not ‘adopt a check-box mentality in applying the guidelines’ but notes financial institutions that choose not to adopt the specific guidance should be prepared to justify their decision and demonstrate how they achieve the relevant outcomes through other means.” 148 Similarly, the City of London Corporation noted the flexibility of the Central Bank of Ireland (CBI), in contrast to the rigidity and complexity of the FCA: “In the UK there are prescriptive reporting requirements with firms required to report annually to the FCA details of conduct rule breaches resulting in disciplinary action. In contrast, the CBI takes a more subjective approach, giving firms flexibility with the requirement being to report issues promptly and appropriately.” 149