Singapore legislation
Section 123ZT
Section 123ZT
Approval of chief executive officer and director of authorised benchmark submitter or designated benchmark submitter
(1)
Subject to subsection (3), an authorised benchmark submitter or designated benchmark submitter 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 the approval of the Authority to do so.
(2)
Where an authorised benchmark submitter or a designated benchmark submitter 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 a chief executive officer or director (as the case may be) of the authorised benchmark submitter or designated benchmark submitter (as the case may be) immediately upon the expiry of the earlier term without the approval of the Authority.
(3)
Subsection (1) does 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 carrying out of the activity of providing information in relation to a designated benchmark or any part of the activity of providing information in relation to a designated benchmark.
(4)
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 by regulations made under section 123ZZA or notified to the authorised benchmark submitter or designated benchmark submitter, as the case may be.
(5)
Subject to subsection (6), the Authority must not refuse an application for approval under subsection (1) without giving the authorised benchmark submitter or designated benchmark submitter an opportunity to be heard.
(6)
The Authority may refuse an application for approval under subsection (1) on any of the following grounds without giving the authorised benchmark submitter or designated benchmark submitter an opportunity to be heard:
the person is an undischarged bankrupt, whether in Singapore or elsewhere;
a prohibition order under section 123ZZC 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 he or she had acted fraudulently or dishonestly; and
punishable with imprisonment for a term of 3 months or more.
(7)
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.
(8)
Without affecting the Authority’s power to impose conditions or restrictions under section 123ZE(2) or (3), or requirements or restrictions under section 123ZK, the Authority may, at any time by written notice to the authorised benchmark submitter or designated benchmark submitter, 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.
(9)
This section does not apply to any designated benchmark submitter that is —
a bank licensed under the Banking Act 1970;
a merchant bank licensed under the Banking Act 1970;
a finance company licensed under the Finance Companies Act 1967;
a holder of a capital markets services licence for any regulated activity;
a licensed financial adviser under the Financial Advisers Act 2001;
a direct insurer licensed under the Insurance Act 1966 to carry on life business;
an insurance intermediary registered or regulated under the Insurance Act 1966, who arranges contracts of insurance in Singapore in respect of life business only; or
such other person or class of persons as may be prescribed by regulations made under section 123ZZA.
(10)
Any authorised benchmark submitter or designated benchmark submitter which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction.
(11)
Any authorised benchmark submitter or designated benchmark submitter which contravenes any condition imposed on it under subsection (8) shall be guilty of an offence.