Singapore’s banks, insurers and financial holding companies are likely to face more stringent requirements for independent directors on their boards under new rules proposed by the Monetary Authority of Singapore, reported Bloomberg.

 

A director may not be considered independent after serving nine straight years on a board, the central bank said in an e-mailed statement today. The number of independent directors on the nominating committee, remuneration committee and board would also be raised from one-third to a majority, according to the proposed rules, which may take effect on or after Jan 1, 2012.

 

DBS Group Holdings, United Overseas Banking and Oversea-Chinese Banking Corp., as well as Citibank Singapore and insurers such as Great Eastern Holdings and Prudential Assurance Co. will be among those that may be required to adopt the new rules.

 

The central bank is also considering changing requirements tied to compensation, the skill level of board members and the time commitment from each director. The authority expects most of the proposals to be adopted from the first annual shareholder meeting held by each company on or after Jan 1, 2011, with the remaining amendments taking effect about a year later, it said.