Parliamentary Question by Mr Png Eng Huat:
To ask 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.
Parliamentary Response by Minister for Finance 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.