Singapore legislation
Section 239D
Section 239D
Power of Authority to recognise business trusts constituted outside Singapore
(1)
The Authority may, upon an application made to it in such form and manner as may be prescribed and subject to subsection (2), recognise a business trust constituted outside Singapore.
(2)
The Authority may recognise a business trust under subsection (1) if and only if the Authority is satisfied that —
the laws and practices of the jurisdiction under which the business trust is constituted and regulated affords to investors in Singapore protection at least equivalent to that provided to them under the Business Trusts Act 2004 in the case of registered business trusts;
the business trust satisfies such criteria as may be prescribed by regulations made under section 341; and
the person making the offer of, or the issuer of, units or derivatives of units in the business trust, or the trustee‑manager of the business trust, satisfies such criteria as may be prescribed by regulations made under section 341.
(3)
Without affecting subsection (2), in considering whether to recognise a business trust under subsection (1), the Authority may have regard to such other factors as may be prescribed.
(4)
Without affecting subsection (2), the Authority may refuse to recognise any business trust where it appears to the Authority that it is not in the public interest to do so.
(5)
The Authority must not refuse to recognise a business trust under subsection (1) without giving the person who made the application an opportunity to be heard, except that an opportunity to be heard need not be given if the refusal is on the ground that it is not in the public interest to recognise the business trust on the basis of any of the following circumstances:
the person making the offer (being an entity), the issuer or the trustee‑manager of the business trust or the business trust itself is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
the person making the offer (being an individual) is an undischarged bankrupt, whether in Singapore or elsewhere;
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 person making the offer (being an entity) or the issuer;
any property of the trustee‑manager of the business trust; or
the trust property of the business trust.
(6)
Any person making an application under subsection (1) may, within 30 days after the person is notified that the Authority has refused to recognise that business trust constituted outside Singapore, appeal to the Minister whose decision is final.
(7)
An application made under subsection (1) must be accompanied by such information or record as the Authority may require.
(8)
The Authority may publish for public information, in such manner as it considers appropriate, particulars of any business trust that is recognised under subsection (1).
(9)
While a business trust remains a recognised business trust, each of the following persons must ensure that the criteria prescribed by regulations made under section 341 in accordance with subsection (2)(b) and (c) which are applicable to the person continue to be satisfied:
a person making an offer of units or derivatives of units in the trust;
an issuer of units or derivatives of units in the trust;
the trustee‑manager of the trust.
(10)
The trustee‑manager of a recognised business trust must provide such information or record regarding the business trust as the Authority may, at any time, require for the proper administration of this Act.
(11)
Any person who contravenes subsection (9) or (10) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.