General Announcement::SGX RegCo wants Singapore-registered auditor for all listed companies

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
16-Jan-2020 07:59:04
Status
New
Announcement Sub Title
SGX RegCo wants Singapore-registered auditor for all listed companies
Announcement Reference
SG200116OTHRSUXF
Submitted By (Co./ Ind. Name)
Jo-Ann
Designation
Senior Associate Marketing & Communications
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange Regulation (SGX RegCo) is consulting the market on proposals to strengthen oversight of audits by requiring all listed companies to appoint an auditor registered with the Accounting and Corporate Regulatory Authority (ACRA). In exceptional circumstances, SGX RegCo may direct the appointment of an additional auditor.

SGX RegCo also wants to raise the reporting standards of property valuation by listed companies.

"Reliable and informative financial statements are the bedrock of our financial markets. Requiring all listed companies to appoint a Singapore-registered auditor and giving SGX RegCo the power to appoint an additional auditor will also increase the accountability of auditors and improve investor confidence in audits. The enhancements SGX RegCo is proposing on valuation are aimed at raising standards and ensuring quality disclosures on valuations of real estate, and is the result of our collaboration with the industry," said Tan Boon Gin, CEO of SGX RegCo.

The enhancements being contemplated include:

1. Regulatory regime for conduct of auditors:

SGX RegCo proposes that all issuers must appoint an auditing firm and audit partner registered with ACRA. Foreign issuers that wish to appoint foreign auditors must also appoint an auditor registered with ACRA to act as a joint auditor.

If this proposal is implemented, audits performed for all SGX-listed issuers will effectively be subject to ACRA's regulatory oversight.

2. Circumstances to direct appointment of additional auditor

SGX RegCo currently has the authority to require issuers to appoint independent professionals, as well as special auditors, for specified purposes. SGX RegCo seeks feedback on the circumstances under which it may be appropriate to direct an issuer to appoint an additional auditor to audit the issuer's financial statements so as to address uncertainties in the market in a timely manner. SGX RegCo may require that the additional auditor provide a second independent opinion on the issuer's financial statements or to act as a joint auditor.

3. Qualifications of property valuer:

To ensure professionals carrying out valuations of property assets are sufficiently qualified, SGX RegCo proposes that valuers must have at least 5 years' relevant experience in conducting valuations for the type of property being valued. Valuers should also be a member of the Singapore Institute of Surveyors and Valuers (SISV) or a similar professional body in the home jurisdiction which has the powers to discipline and revoke the membership of the valuer. The valuer should be independent of the issuer, and cannot be a sole practitioner or have an adverse compliance track record.

4. Standards for property valuation reporting:

To ensure comparability of information for investors, SGX RegCo proposes to require issuers and listing applicants to comply with the SISV standards for the valuation of properties in Singapore. For overseas properties, valuation may be carried out in accordance with the SISV or the International Valuation Standards (IVS) set by the IVS Council. Summary property valuation reports that are disclosed must contain the information required for prospectus and circulars as set out under the SISV Practice Guide.

The consultation can be found here and is open for feedback till 14 February 2020.

Attachments

20200116_SGX_RegCo_wants_Singapore-registered_auditor_for_all_listed_companies.pdf
Total size =536K