Singapore legislation
Section 29D
Section 29D
Cancellation, etc., of appointment as primary dealer
(1)
If the Authority is satisfied that —
a primary dealer is contravening, or is likely to contravene or has contravened —
any provision of this Act applicable to the primary dealer; or
any condition or restriction of its appointment as a primary dealer;
a primary dealer has not complied with any direction issued by the Authority under section 29C;
a primary dealer has gone or is likely to go into compulsory or voluntary liquidation other than for the purpose of amalgamation or reconstruction;
a receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to or in respect of any property of the primary dealer;
a primary dealer has obtained the appointment as a primary dealer by fraud or misrepresentation;
a primary dealer has failed to satisfy any of the primary dealer’s obligations under or arising from this Act;
a primary dealer has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that the primary dealer had acted fraudulently or dishonestly;
a primary dealer is no longer in a position to effectively carry out the primary dealer’s duties or responsibilities as a primary dealer under this Act and the regulations made under this Act; or
a primary dealer is carrying on its business mentioned in section 29A(1) in a manner that is likely to be detrimental to its clients or contrary to the public interest,the Authority may by order cancel the appointment as a primary dealer.
(2)
The Authority may, if it considers it desirable to do so, in lieu of an order cancelling the appointment as a primary dealer, by order do either or both of the following:
suspend the appointment for such period (not exceeding 6 months) as it thinks fit;
reprimand the primary dealer in writing.
(3)
In the case of a failure by a primary dealer to comply with any direction issued by the Authority under section 29C, the Authority may, in addition to any order that may be made under subsection (2), order the primary dealer to pay to the Authority, for every day or part of a day of such failure, a financial penalty in accordance with such formula as the Minister may, by notification in the Gazette, prescribe.
(4)
A financial penalty collected by the Authority under subsection (3) must be paid into the Consolidated Fund.
(5)
The Authority must not make any order under subsection (1), (2) or (3) unless an opportunity of being heard by a representative in writing had been given to the primary dealer against which the Authority intends to exercise its powers, being a period of at least 21 days but not more than 28 days.
(6)
Where the Authority has made any order under subsection (1), (2) or (3) against any primary dealer, it must serve on the primary dealer concerned a notice of its order.
(7)
Subject to subsections (8) and (9), any order made by the Authority under subsection (1), (2) or (3) against any primary dealer must not take effect until the expiry of 21 days after the Authority has served the notice of its order on the primary dealer concerned.
(8)
Any order cancelling or suspending an appointment as a primary dealer must not operate so as to —
prejudice the enforcement by any person of any right or claim against the financial institution formerly appointed as a primary dealer, or by the financial institution formerly so appointed, of any right or claim against any person; or
affect the validity or enforceability of any agreement, transaction or arrangement in respect of Government securities or Treasury bills entered into (whenever) by the primary dealer.
(9)
An order of reprimand under subsection (2) takes effect on the date it is served on the primary dealer concerned.
(10)
The Authority may recover on behalf of the Government any financial penalty ordered under subsection (3) as though the financial penalty were a civil debt due to the Authority.