Requirement for Financial Institutions to Give Candidates Fit and Proper Reasons when Rejecting Their Job Applications
Ministry of FinanceSpeakers
Summary
This question concerns whether the Monetary Authority of Singapore (MAS) can require financial institutions to give job candidates specific fit and proper reasons when rejecting them after background checks, and how MAS ensures circumstances of past convictions are genuinely evaluated. Mr Chua Kheng Wee Louis raised these queries regarding applicants who have not received prohibition orders. Responding on behalf of the Prime Minister and Minister for Finance, Minister Gan Kim Yong stated that financial institutions must assess adverse information with due care, considering the seriousness, circumstances, time elapsed, and role responsibilities. He explained that employers determine applicant communications, as providing specific reasons is not always feasible due to confidentiality or internal deliberations. Individuals who believe they have been treated unfairly may approach the Tripartite Alliance for Fair and Progressive Employment Practices for assistance.
Transcript
92 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.