SINGAPORE - Singapore’s corporate regulator will be able to use online information from other government agencies to keep its registers up to date and send its notices to companies electronically instead of using snail mail, under proposed rule changes.
These and other changes will allow the Accounting and Corporate Regulatory Authority (Acra) to become digitalised and enable it to streamline the country’s corporate regulatory framework.
The proposed updates to both the Accounting and Corporate Regulatory Authority Act 2004 and the Companies Act 1967 are being initiated by the Ministry of Finance (MOF) and Acra, according to a joint statement they issued on March 5.
The proposed changes will see individuals authorised by their companies use either Singpass or Corppass to access secure digital inboxes.
The more effective sharing of information with other agencies under the changes will also help Acra to eliminate red tape – the requiring of individuals to provide the same information across various government departments.
At the same time, Acra, which oversees business registration and financial reporting, will be empowered to disclose information to entities that need the data to meet statutory obligations relating to anti-money laundering, for example.
In addition, the rule changes will give the regulator the power to obtain accurate information from specific entities, and then to use that information for enforcement and regulatory purposes if necessary.
To improve efficiency further, Acra will – after the rule change – also be able to disqualify individuals from being directors, had they already been disqualified under any section of the Companies Act.
For now, Acra is unable to update the register of directors disqualified under the Companies Act, if it had received the pertinent information from other sources, such as government agencies and the courts.
Other changes being mooted include the streamlining of financial reporting requirements for foreign companies.
For example, a listed foreign company can lodge its reports and statements with Acra if they comply with the listing rules of the exchange where it is listed.
For unlisted foreign firms, however, the new rules appear more relaxed and should relieve the administrative burden by letting these companies file the appropriate documents they have prepared.
Members of the public can provide their feedback on the proposed amendments from March 5 to 18.
The public can access the consultation documents either through the Reach consultation portal, or via the websites of MOF or Acra. Meanwhile, those interested may submit their comments via FormSG.
