Singapore legislation
Section 57FB
Section 57FB
Disqualification or removal of director or executive officer
(1)
Despite the provisions of any other written law —
a licensee incorporated outside Singapore must not, without the prior written consent of the Authority, permit a person to act as an executive officer of its branch in Singapore; and
a licensee incorporated in Singapore must not, without the prior written consent of the Authority, permit a person to act as its executive officer or director,if the person —
has been convicted, whether in Singapore or elsewhere, of an offence whether committed before, on or after 1 October 2020, being an offence —
involving fraud or dishonesty;
the conviction for which involved a finding that the person had acted fraudulently or dishonestly; or
that is specified in the Third Schedule to the Registration of Criminals Act 1949;
is an undischarged bankrupt, whether in Singapore or elsewhere;
has had execution against the person in respect of a judgment debt returned unsatisfied in whole or in part;
has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with the person’s creditors, being a compromise or scheme of arrangement that is still in operation;
has had a prohibition order under section 68 of the Financial Advisers Act 2001, section 74 of the Insurance Act 1966 or section 101A of the Securities and Futures Act 2001 made against the person that remains in force; or
has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Singapore or elsewhere —
which is being or has been wound up by a court; or
the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in that foreign country or territory.
(2)
Despite the provisions of any other written law, where the Authority is satisfied that —
a director of a licensee incorporated in Singapore; or
an executive officer of a licensee,is not a fit and proper person to be a director or an executive officer (as the case may be), the Authority may, by written notice to the licensee, direct the licensee to remove the director or executive officer from his or her office or employment within the period specified by the Authority in the notice, and the licensee must comply with the notice.
(3)
In assessing whether to direct a licensee to remove a director or an executive officer from his or her office or employment under subsection (2), the Authority may consider any matter which it considers relevant, including (but not limited to) whether —
he or she has wilfully contravened or wilfully caused the licensee to contravene any provision of this Act;
he or she has, without reasonable excuse, failed to secure the compliance of the licensee with this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act;
he or she has failed to discharge any of the duties of his or her office or employment; or
his or her removal is necessary in the public interest or for the protection of customers of the licensee.
(4)
Before directing a licensee to remove a person from the person’s office or employment under subsection (2), the Authority must —
give the licensee and the person written notice of its intention to do so; and
in the notice mentioned in paragraph (a), call upon the licensee and the person to show cause, within the time specified in the notice, why the person should not be removed.
(5)
If the licensee and the person mentioned in subsection (4) —
fail to show cause within the time specified under subsection (4)(b) or within an extended period of time allowed by the Authority; or
fail to show sufficient cause,the Authority may direct the licensee to remove the person under subsection (2).
(6)
Any licensee which, or any director or executive officer of a licensee who, is aggrieved by a direction of the Authority under subsection (2) may, within 30 days after receiving the direction, appeal in writing to the Minister whose decision is final.
(7)
Any licensee which contravenes subsection (1) or fails to comply with a notice issued under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
(8)
No criminal or civil liability is incurred by a licensee, or any person acting on behalf of the licensee, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the licensee under this section.
(9)
In this section, unless the context otherwise requires —
Definition
“regulated financial institution” means a person carrying on a business, the conduct of which is regulated or authorised by the Authority or, if carried on in Singapore, would be regulated or authorised by the Authority;
Definition
“regulatory authority”, in relation to a foreign country or territory, means an authority of the foreign country or territory exercising any function that corresponds to a regulatory function of the Authority under this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act.