Singapore legislation
Section 4B
Section 4B
Application of section 4A
(1)
In section 4A, “advertisement” means the dissemination or conveyance of information, or invitation or solicitation by any means or in any form, including by means of —
publication in a newspaper, magazine, journal or other periodical;
display of posters or notices;
circulars, handbills, brochures, pamphlets, books or other documents;
letters addressed to individuals or bodies;
photographs or cinematograph films; or
sound broadcasting, television, the Internet or other media.
(2)
An advertisement containing information which is intended or might reasonably be presumed to be intended to lead, directly or indirectly, to the making of a deposit is to be treated as an advertisement mentioned in section 4A.
(3)
Despite subsections (1) and (2), an advertisement issued outside Singapore is not to be treated as an advertisement for the purposes of section 4A(2) if it is made available —
in a newspaper, magazine, journal or other periodical published and circulating principally outside Singapore;
in a sound or television broadcast transmitted principally for reception outside Singapore; or
by any other means of broadcasting or communication principally for circulation or reception outside Singapore.
(4)
Subject to the provisions of this section, for the purposes of section 4A, “deposit” means —
a sum of money paid on terms —
under which it will be repaid, with or without interest or a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and
which are not referable to the provision of property or services or to the giving of security; and
such other product as may be prescribed.
(4A)
The Authority may, by regulations, exclude any product from the definition of “deposit” in subsection (4)(a).
(5)
For the purposes of subsection (4)(a)(ii), money is paid on terms which are referable to the provision of property or services or to the giving of security if, and only if —
it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided;
it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non‑performance of a contract; or
without affecting paragraph (b), it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
(6)
In subsection (4), “deposit” does not include —
a sum paid by the Authority, any person referred to in section 4A(6)(a) to (d) or any insurer licensed under the Insurance Act 1966;
a sum paid by any moneylender licensed under the Moneylenders Act 2008;
a sum paid by one company to another at a time when one is a subsidiary of the other or both are subsidiaries of another company, or the same individual controls more than half of the voting power or holds more than half of the total number of issued shares in both of them;
a sum paid by a person who, at the time when it is paid, is a close relative of the person receiving it or who is, or is a close relative of, a director, controller or manager of that person; and
a sum paid by such person or class of persons as may be prescribed.
(7)
Subject to the provisions of this section, for the purposes of section 4A, a business is a deposit-taking business if —
in the course of the business, money received by way of deposit is lent to others; or
the capital of or the interest on money received by way of deposit is used to finance any activity of the business to any material extent.
(8)
Even though subsection (7)(a) or (b) applies to a business, it is not a deposit‑taking business if the person carrying on the business —
does not hold himself, herself or itself out as accepting deposits on a day‑to‑day basis; and
does not accept deposits on a day-to-day basis, whether or not involving the issue of debentures or securities.
(9)
For the purposes of subsection (7), all the activities which a person carries on by way of business is to be regarded as a single business carried on by the person.
(10)
In this section —
Definition
“close relative”, in relation to a person, means the spouse or a parent, remoter lineal ancestor or step-parent or a son, daughter, remoter issue, stepson or stepdaughter or a brother or sister, of the person;
Definition
“controller” means a 12% controller or 20% controller as defined in section 15B(3);
Definition
“debentures” has the meaning given by section 4(1) of the Companies Act 1967;
Definition
“securities” has the meaning given by section 2(1) of the Securities and Futures Act 2001.