Singapore legislation
Section 123ZU
Section 123ZU
Removal of officer of authorised benchmark submitter or designated benchmark submitter
(1)
Despite the provisions of any other written law —
an authorised benchmark submitter or a designated benchmark submitter must not, without the prior written consent of the Authority, permit a person to act as its executive officer; and
an authorised benchmark submitter or a designated benchmark submitter, that is incorporated in Singapore must not, without the prior written consent of the Authority, permit a person to act as its director,if the person —
has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 8 October 2018, being an offence —
involving fraud or dishonesty;
the conviction for which involved a finding that he or she 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 him or her 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 his or her 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, section 101A or 123ZZC made against him or her 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the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in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 an authorised benchmark submitter or a designated benchmark submitter, that is incorporated in Singapore, or an executive officer of an authorised benchmark submitter or a designated benchmark submitter —
has wilfully contravened or wilfully caused the authorised benchmark submitter or designated benchmark submitter (as the case may be) to contravene any provision of this Act;
has, without reasonable excuse, failed to secure the compliance of the authorised benchmark submitter or designated benchmark submitter (as the case may be) with this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act; or
has failed to discharge any of the duties of his or her office,the Authority may, if it thinks it necessary in the interests of the public or a section of the public, or a class or classes of users of a designated benchmark, by written notice to the authorised benchmark submitter or designated benchmark submitter (as the case may be) direct the authorised benchmark submitter or designated benchmark submitter to remove the director or executive officer (as the case may be) from the director’s or executive officer’s office or employment within such period as the Authority may specify in the notice, and the authorised benchmark submitter or designated benchmark submitter (as the case may be) must comply with the notice.
(3)
Without affecting any other matter that the Authority may consider relevant, the Authority may, when determining whether a director or an executive officer of an authorised benchmark submitter or designated benchmark submitter (as the case may be) has failed to discharge the duties of the director’s or executive officer’s office for the purposes of subsection (2)(c), have regard to such criteria as may be prescribed by regulations made under section 123ZZA or notified in writing to the authorised benchmark submitter or designated benchmark submitter, as the case may be.
(4)
The Authority must not direct an authorised benchmark submitter or designated benchmark submitter to remove a person from the person’s office under subsection (2) without giving the authorised benchmark submitter or designated benchmark submitter (as the case may be) an opportunity to be heard.
(5)
Where the Authority directs an authorised benchmark submitter or a designated benchmark submitter to remove a person from the person’s office or employment under subsection (2), the Authority need not give that person an opportunity to be heard.
(6)
No criminal or civil liability is incurred by —
an authorised benchmark submitter;
a designated benchmark submitter; or
any person acting on behalf of the authorised benchmark submitter or designated benchmark submitter,in respect of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of its obligations under this section.
(7)
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;
the 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.
(8)
Any authorised benchmark submitter or designated benchmark submitter which contravenes subsection (1), or any direction issued by the Authority under subsection (2), 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.
(9)
In this section, unless the context otherwise requires —
Definition
“regulated financial institution” means a person who carries on a business, the conduct of which is regulated or authorised by the Authority or, if it is 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.