Singapore legislation

Section 55S

of Banking Act 1970

Section 55S

Application for merchant bank licence

Amended by1/20201/20201/20201/20201/20201/20201/20201/2020

(1)

A company that wishes to carry on a permitted business in Singapore may, instead of applying for a bank licence under section 7(1), apply in writing to the Authority for a merchant bank licence under this section.

Amended by1/2020

(2)

An applicant under subsection (1) must provide to the Authority —

(a)

a copy of the memorandum and articles of association or other instrument under which the applicant is incorporated, duly verified by a statutory declaration made by a senior officer of the applicant;

(b)

a copy of the latest balance sheet of the applicant; and

(c)

any other information required by the Authority.

Amended by1/2020

(3)

On receipt of an application under subsection (1), the Authority must consider the application and may, subject to section 55T —

(a)

grant a merchant bank licence to the applicant, with or without conditions; or

(b)

refuse to grant the licence.

Amended by1/2020

(4)

The Authority may, at any time, impose conditions or additional conditions on, or vary or revoke any condition of, a merchant bank licence under subsection (3)(a).

Amended by1/2020

(5)

The Authority must, before taking any action under subsection (4) in relation to a merchant bank —

(a)

give written notice of its intention to take that action to the merchant bank; and

(b)

give the merchant bank an opportunity to provide reasons why the conditions of its licence should not be so imposed, varied or revoked.

Amended by1/2020

(6)

A merchant bank commits an offence if it fails to comply with any condition of its licence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine of $10,000 for every day or part of a day during which the offence continues after conviction.

Amended by1/2020

(7)

An application under subsection (1) must be accompanied by a non‑refundable application fee —

(a)

that is of an amount prescribed by the Authority by notification in the Gazette; and

(b)

that must be paid in the manner specified by the Authority.

Amended by1/2020

(8)

Any person that provides any document or information in connection with an application under subsection (1), knowing or reckless as to whether the document or information is false or misleading in any material particular, commits an offence and shall be liable on conviction —

(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or

(b)

in any other case, to a fine not exceeding $250,000.

Amended by1/2020