Singapore legislation

Section 55ZF

of Banking Act 1970

Section 55ZF

Application of provisions in Part 5

Amended by1/20201/20201/2020

(1)

Subject to section 55R, section 29A read with the Fifth Schedule (as applied by section 55ZL) applies to or in relation to a merchant bank in Singapore or a class of merchant banks in Singapore as it applies to or in relation to a bank in Singapore or a class of banks in Singapore.

Amended by1/2020

(2)

Subject to section 55R, section 32 applies to or in relation to a merchant bank in Singapore as it applies to or in relation to a bank in Singapore, subject to the following modifications:

(a)

the following definition applies in place of the definition of “major stake” in section 32(7): “ “major stake”, in relation to an entity, means —

(a)

any beneficial interest exceeding 20% of the total number of issued shares or another measure corresponding to shares in a company that is prescribed;

(b)

control of more than 20% of the voting power or another measure corresponding to voting power in a company that is prescribed; or

(c)

any interest in the entity, by reason of which —

(i)

the management of the entity is accustomed or under an obligation, (whether formal or informal) to act in accordance with the merchant bank’s directions, instructions or wishes; or

(ii)

the merchant bank is in a position to determine the policy of the entity;”;

(b)

the following definition applies in place of the definition of “prohibited business” in section 32(7):“ “prohibited business” means any business other than the businesses mentioned in section 55V.”.

Amended by1/2020

(3)

The Authority may make regulations under section 78 to provide for the matters mentioned in section 35 in relation to a merchant bank in Singapore, and for this purpose, the reference in that section to a bank in Singapore is to a merchant bank in Singapore.

Amended by1/2020