Singapore legislation
Section 56
Section 56
Power of Authority to revoke approval and recognition
(1)
The Authority may revoke any approval of a Singapore corporation as an approved clearing house under section 51(1)(a), any recognition of a Singapore corporation as a recognised clearing house under section 51(1)(b) or any recognition of a foreign corporation as a recognised clearing house under section 51(2), if —
there exists at any time a ground under section 51(7) or (8) on which the Authority may refuse an application;
the corporation does not commence operating its clearing facility, or, where it operates more than one clearing facility, all of its clearing facilities, within 12 months starting on the date on which it was granted the approval under section 51(1)(a) or was recognised under section 51(1)(b) or (2), as the case may be;
the corporation ceases to operate its clearing facility or, where it operates more than one clearing facility, all of its clearing facilities;
the corporation contravenes —
any condition or restriction applicable in respect of its approval or recognition, as the case may be;
any direction issued to it by the Authority under this Act; or
any provision in this Act;
(da)upon the Authority exercising any power under section 81SAA(2) or the Minister exercising any power under Division 2, 3, 4 or 4A of Part 4B of the Monetary Authority of Singapore Act 1970 in relation to the corporation, the Authority considers that it is in the public interest to revoke the approval or recognition, as the case may be;
the corporation operates in a manner that is, in the opinion of the Authority, contrary to the interests of the public; or
any information or document provided by the corporation to the Authority is false or misleading.
(2)
Subject to subsection (3), the Authority must not revoke under subsection (1) any approval under section 51(1)(a) or recognition under section 51(1)(b) or (2) that was granted to a corporation without giving the corporation an opportunity to be heard.
(3)
The Authority may revoke an approval under section 51(1)(a), or a recognition under section 51(1)(b) or (2), that was granted to a corporation on any of the following grounds without giving the corporation an opportunity to be heard:
the corporation is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
a receiver, a receiver and manager or a person in an equivalent capacity has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of, any property of the corporation;
the corporation has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 1 August 2013, involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.
(4)
For the purposes of subsection (1)(c), a corporation is deemed to have ceased to operate its clearing facility if —
it has ceased to operate the clearing facility for more than 30 days, unless it has obtained the prior approval of the Authority to do so; or
it has ceased to operate the clearing facility under a direction issued by the Authority under section 81R.
(5)
Any corporation which is aggrieved by a decision of the Authority made in relation to the corporation under subsection (1) may, within 30 days after the corporation is notified of the decision, appeal to the Minister, whose decision is final.
(6)
Despite the lodging of an appeal under subsection (5), any action taken by the Authority under this section continues to have effect pending the Minister’s decision.
(7)
The Minister may, when deciding an appeal under subsection (5), make such modification as he or she considers necessary to any action taken by the Authority under this section, and the modified action has effect from the date of the decision of the Minister.
(8)
Any revocation under subsection (1) or (3) of the approval or recognition of a corporation under section 51(1) or (2) does not operate so as to —
avoid or affect any agreement, transaction or arrangement entered into in connection with the use of a clearing facility operated by the corporation, whether the agreement, transaction or arrangement was entered into before, on or after the revocation of the approval or recognition; or
affect any right, obligation or liability arising under any such agreement, transaction or arrangement.
(9)
The Authority must give notice in the Gazette of any revocation under subsection (1) or (3) of any approval or recognition of a corporation under section 51(1) or (2).