Share Ownership by Senior Management of Temasek Holdings and GIC in Companies These Sovereign Wealth Funds Have Invested in
Ministry of FinanceSpeakers
Summary
This question concerns Mr Png Eng Huat's inquiry into share ownership by Temasek and GIC senior management in investee companies and the prevention of insider trading. Minister Heng Swee Keat stated that all employees must comply with laws against insider trading, with respective boards held accountable for corporate governance. GIC and Temasek maintain internal codes of conduct governing personal investments, including nominee accounts, to prevent conflicts of interest and misuse of price-sensitive information. These policies prohibit staff from benefiting from insider information, supported by compliance manuals and strict ethical guidelines. Disciplinary actions for violations are enforced by the organizations and can include censure or the termination of employment.
Transcript
20 Mr Png Eng Huat asked the Minister for Finance (a) whether the Government allows share ownership by senior management of Temasek Holdings and GIC, whether as direct ownership or using nominee accounts, in companies that the two sovereign wealth funds have invested in; and (b) how does the Government ensure that these senior management staff do not benefit from insider information.
Mr Heng Swee Keat: All market participants, including GIC and Temasek employees, are expected to comply fully with the laws and regulations of the jurisdictions where they operate, including those against insider trading. Any violations will be dealt with in accordance with the law.
Besides compliance with relevant laws and regulations, the Government holds the GIC and Temasek boards accountable for instilling good corporate governance practices in GIC and Temasek respectively. To achieve this, the respective boards set the tone and direction for management, which in turn formulates the corporate policies and internal controls, and ensures that these rules are adhered to.
In this regard, GIC and Temasek have internal rules that govern the personal investments of their staff, whether through direct ownership or the use of nominee accounts. GIC and Temasek employees are not allowed to have any personal dealings to benefit from insider information or make investments that may give rise to conflicts of interest with their organisations.
GIC has a Compliance Manual and Code of Ethics, which prohibits all GIC employees from benefiting from insider information. Similarly, Temasek has its Code of Ethics and Conduct, which governs the treatment and misuse of price-sensitive insider information, and the management of potential conflicts of interest.
Disciplinary action will be taken by GIC and Temasek against violations of their respective codes of conduct, including censure or termination of employment.