Requirement for Financial Institutions to Give Candidates Fit and Proper Reasons when Rejecting Their Job Applications

Mr Chua Kheng Wee Louis asked the Prime Minister and Minister for Finance (a) whether MAS can consider requiring financial institutions to give job candidates a specific fit and proper reason when rejecting them following background checks; and (b) how does MAS ensure financial institutions genuinely assess the circumstances of past convictions in their hiring decisions, particularly those who have not been issued any prohibition order.

Mr Gan Kim Yong (for the Prime Minister): The Monetary Authority of Singapore requires financial institutions (FIs) to conduct fit and proper assessments for certain roles to ensure appointees are of good standing and integrity. This includes appointments of representatives who provide financial services to customers. FIs are expected to conduct these assessments with due care. Where adverse information on an individual emerges, FIs must consider the seriousness and circumstances of past conduct, time elapsed since the conduct, and the nature and responsibilities of the role to be assumed.

FIs, like other employers, are subject to applicable employment laws and regulations, including those governing recruitment and communication with job applicants. Hiring decisions are based on a range of factors, including fit and proper standards, experience and skillsets. Hiring organisations are best placed to determine what to appropriately communicate for not proceeding with an applicant. However, it may not always be possible to provide specific reasons, as it can involve confidential information, including those obtained from third parties or deliberations, such as the relative performance of candidates.

Individuals who believe they have been treated unfairly in the hiring process may approach the Tripartite Alliance for Fair and Progressive Employment Practices for assistance.