Singapore legislation
Section 63
Section 63
Approval of chief executive officer and director of licensed financial adviser
(1)
Subject to subsection (3), a licensed financial adviser must not —
appoint a person as its chief executive officer or director; or
change the nature of the appointment of a person as a director from one that is non‑executive to one that is executive,unless it has obtained the approval of the Authority.
(2)
Where a licensed financial adviser has obtained the approval of the Authority to appoint a person as its chief executive officer or director under subsection (1)(a), the person may be re‑appointed as chief executive officer or director (as the case may be) of the licensed financial adviser immediately upon the expiry of the earlier term without the approval of the Authority.
(3)
Subsection (1) must not apply to the appointment of a person as a director of a foreign company, or the change in the nature of the appointment of a person as a director of a foreign company if, at the time of the appointment or change, the person —
does not reside in Singapore; and
is not directly responsible for its business in Singapore or any part thereof.
(4)
In subsection (3), “foreign company” has the meaning given by section 4(1) of the Companies Act 1967.
(5)
Without affecting any other matter that the Authority may consider relevant, the Authority may, in determining whether to grant its approval under subsection (1), have regard to such criteria as may be prescribed or as may be specified in written directions.
(6)
Subject to subsection (7), the Authority must not refuse an application for approval under subsection (1) without giving the licensed financial adviser an opportunity to be heard.
(7)
The Authority may refuse an application for approval under subsection (1) on any of the following grounds without giving the licensed financial adviser an opportunity to be heard:
the person is an undischarged bankrupt, whether in Singapore or elsewhere;
a prohibition order under section 68 has been made by the Authority, and remains in force, against the person;
the person 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 person had acted fraudulently or dishonestly; and
punishable with imprisonment for a term of 3 months or more.
(8)
Where the Authority refuses an application for approval under subsection (1), the Authority need not give the person who was proposed to be appointed an opportunity to be heard.
(9)
Any licensed financial adviser which is aggrieved by the decision of the Authority under subsection (1) may, within 30 days of the decision of the Authority, appeal in writing to the Minister.
(10)
Any licensed financial adviser which, without reasonable excuse, contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
(11)
Without affecting the Authority’s power to impose conditions or restrictions under section 10, the Authority may at any time, by written notice to a licensed financial adviser, impose on it a condition requiring it to notify the Authority of a change to any specified attribute (such as residence and nature of appointment) of its chief executive officer or director, and vary any such condition.
(12)
Any person who contravenes any condition or restriction imposed under subsection (11) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
(13)
In this section, “chief executive officer” means any person, by whatever name described, who is —
in the direct employment of, or acting for or by arrangement with, a licensed financial adviser; and
principally responsible for the management and conduct of any type of business of the financial adviser in Singapore.[56