Singapore legislation
Section 97
Section 97
Removal of officer of holder of capital markets services licence
(1)
Despite the provisions of any other written law —
a holder of a capital markets services licence must not, without the prior written consent of the Authority, permit a person to act as its executive officer; and
a holder of a capital markets services licence which 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 18 April 2013, 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 or 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the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in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.
(1A)
Despite the provisions of any other written law, where the Authority is satisfied that a director of a holder of a capital markets services licence which is incorporated in Singapore, or an executive officer of a holder of a capital markets services licence —
has wilfully contravened or wilfully caused the holder to contravene any provision of this Act;
has, without reasonable excuse, failed to secure the compliance of the holder 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 for the protection of investors, by written notice to the holder, direct the holder to remove the director or executive officer (as the case may be) from his or her office or employment within such period as the Authority may specify in the notice, and the holder must comply with the notice.
(2)
Without affecting any other matter that the Authority may consider relevant, the Authority must, when determining whether a director or an executive officer of a holder of a capital markets services licence has failed to discharge the duties of his or her office for the purposes of subsection (1A)(c), have regard to such criteria as may be prescribed or as may be specified in written directions.
(3)
The Authority must not direct a holder of a capital markets services licence to remove a person from his or her office under subsection (1A) without giving the holder an opportunity to be heard.
(4)
[Deleted by Act 10 of 2013]
(5)
Where the Authority directs a holder of a capital markets services licence to remove a person from his or her office or employment under subsection (1A), the Authority need not give that person an opportunity to be heard.
(6)
No criminal or civil liability shall be incurred by —
a holder of a capital markets services licence; or
any person acting on behalf of the holder of a capital markets services licence,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)
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.