Singapore legislation
Section 288
Section 288
Revocation, suspension or withdrawal of authorisation or recognition
(1)
The Authority may revoke the authorisation of a collective investment scheme granted under section 286 or the recognition of a collective investment scheme granted under section 287 if —
the application for authorisation or recognition, or any related information or record submitted to the Authority whether at the same time as or subsequent to the application, was false or misleading in a material particular or omitted a material particular which, had it been known to the Authority at the time of submission, would have resulted in the Authority not granting the authorisation or recognition;
(aa)the Authority is of the opinion that the continued authorisation or recognition of the scheme is or will be against the public interest;
the Authority is of the opinion that the continued authorisation or recognition of the scheme is or will be prejudicial to its participants or potential participants;
(ba)in the case of a scheme recognised under section 287, the Authority is of the opinion that it is necessary to revoke the recognition of the scheme to give effect to the provisions of any arrangement relating to cross‑border offers of collective investment schemes to which Singapore or the Authority is a party; or
in the case of —
a scheme authorised under section 286 that is constituted as a unit trust, the responsible person for the scheme or the trustee for the scheme (where applicable) fails to comply with section 286(10) or (13);
(ia)a scheme authorised under section 286 that is constituted as a VCC or as a sub‑fund, the responsible person for the scheme, the manager for the scheme, or the custodian for the scheme (where applicable), fails to comply with section 286(10) or (13); or
a scheme recognised under section 287, the responsible person for the scheme or the representative for the scheme, where applicable, fails to comply with section 287(9), (12) or (13).
(2)
Where the Authority revokes the authorisation or recognition of a collective investment scheme under subsection (1), the Authority may issue such directions as it deems fit to the responsible person for the scheme, including a direction that the responsible person —
refund all moneys contributed by the participants of the scheme; or
provide the participants with an option, on such terms as the Authority may approve, to obtain from the responsible person a refund of all moneys contributed by them or to redeem their units in accordance with the scheme.
(3)
In determining whether to issue a direction under subsection (2), the Authority must consider whether the responsible person for the collective investment scheme is able to liquidate the property of the scheme without material adverse financial effect to the participants, and for this purpose, the factors which the Authority may take into account include —
whether a significant amount of the moneys contributed by the participants has been invested;
the liquidity of the property of the scheme; and
the penalties (if any) payable for liquidating the property.
(4)
A responsible person who contravenes any of the directions issued by the Authority to the responsible person 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.
(5)
Despite subsection (1), the Authority may, if it considers it desirable to do so, instead of revoking the authorisation or recognition of a collective investment scheme, suspend the authorisation or recognition of that scheme for a specific period, and may at any time remove such suspension.
(6)
Where the Authority revokes the authorisation or recognition of a collective investment scheme under subsection (1) or suspends the authorisation or recognition of a collective investment scheme under subsection (5), it must notify the responsible person for the scheme.
(7)
Subject to subsection (8), the Authority may, upon an application in writing made to it by the responsible person for a collective investment scheme, in such form and manner as may be prescribed, withdraw the authorisation or recognition of that scheme.
(8)
The Authority may refuse to withdraw the authorisation or recognition of a collective investment scheme under subsection (7) where the Authority is of the opinion that —
there is any matter concerning the scheme which should be investigated before the authorisation or recognition is withdrawn; or
the withdrawal of the authorisation or recognition would not be in the public interest.
(8A)
The Authority must not —
revoke the authorisation or recognition of a collective investment scheme under subsection (1);
suspend the authorisation or recognition of a collective investment scheme under subsection (5); or
refuse the withdrawal of the authorisation or recognition of a collective investment scheme under subsection (8),without giving the responsible person of the scheme an opportunity to be heard, except that an opportunity to be heard need not be given if the revocation or suspension is on the ground that the continued authorisation or recognition of the scheme is against the public interest on the basis of any of the following circumstances:
the person making the offer (being an entity), the responsible person or the collective investment scheme 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), the responsible person or the collective investment scheme.
(8B)
The responsible person for a collective investment scheme may, within 30 days after the responsible person is notified that the Authority —
has revoked the authorisation or recognition of that scheme under subsection (1);
has suspended the authorisation or recognition of that scheme under subsection (5); or
has refused to withdraw the authorisation or recognition of that scheme under subsection (8),appeal to the Minister whose decision is final.
(9)
Where the Authority revokes an authorisation or recognition under subsection (1), suspends an authorisation or recognition under subsection (5) or withdraws an authorisation or recognition under subsection (7), it may —
impose such conditions on the revocation, suspension or withdrawal as it considers appropriate; and
publish notice of the revocation, suspension or withdrawal, and the reason therefor, in such manner as it considers appropriate.