Singapore legislation
Section 17
Section 17
Approval concerning substantial shareholding
(1)
A person must not become a substantial shareholder of a licensee without the written approval of the Registrar.
(2)
A substantial shareholder of a licensee must not increase the person’s substantial shareholding in a licensee without the written approval of the Registrar.
(3)
Subsections (1) and (2) do not apply in relation to any licensee that has been admitted to the official list of a securities exchange in Singapore and has not been removed from that list.
(4)
An application for the Registrar’s approval mentioned in subsection (1) or (2) must be made in the form and manner specified by the Registrar.
(5)
On an application by a licensee for the Registrar’s approval mentioned in subsection (1) or (2), the Registrar may —
grant the approval applied for; or
refuse to grant the approval applied for.
(6)
The Registrar must refuse to grant an approval under subsection (5)(b) if the Registrar is not satisfied that the applicant is of good character and is a fit and proper person.
(7)
Without limiting subsection (6), the Registrar may refuse to grant an approval under subsection (5)(b) to any person who, whether before, on or after 30 November 2018 —
has been convicted of any offence involving dishonesty or moral turpitude;
has been convicted of any offence under sections 50 to 57 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, the Terrorism (Suppression of Financing) Act 2002 or any regulation made under the United Nations Act 2001;
is contravening or has contravened any provision of this Act or any corresponding previous written law;
has been convicted of any offence under this Act or any corresponding previous written law; or
has carried on any business of moneylending in Singapore or any foreign country or territory —
for which the licence has been revoked or suspended under this Act or any corresponding previous written law; or
the approval, authorisation, registration or licence of or for which has been withdrawn, cancelled or revoked by a regulatory authority in that foreign country or territory.
(8)
The Registrar may cancel any approval granted under subsection (5)(a) in respect of a person if the Registrar —
has reasonable grounds to believe that the approval has been obtained by fraud or misrepresentation;
is no longer satisfied that the person is of good character; or
is no longer satisfied that the person is a fit and proper person.
(9)
The Registrar must not refuse to grant an approval under subsection (5)(b) or cancel any approval under subsection (8) without giving the person applying for the approval or to whom an approval was granted an opportunity to be heard.
(10)
Where an approval granted under subsection (5)(a) is cancelled under subsection (8), the Registrar must notify the licensee concerned and the person in respect of whom the approval was granted of the cancellation and the date on which the approval is cancelled.
(11)
Starting on the date after the date of cancellation of approval specified in the notice under subsection (10) —
the person in respect of whom an approval to become a substantial shareholder of the licensee was cancelled must cease to be a substantial shareholder of the licensee; or
the substantial shareholder in respect of whom the approval to increase the person’s substantial shareholding in the licensee was cancelled must reduce the substantial shareholding in the licensee to a level required by the Registrar in the notice.
(12)
The Registrar must not require any substantial shareholder mentioned in subsection (11)(b) to reduce the substantial shareholding to a level that is lower than the substantial shareholding prior to the increase for which the approval was cancelled.
(13)
Every licensee must submit to the Registrar, in the form and manner and at the time specified by the Registrar, the names and particulars of every person who, as at the date of the submission, is a substantial shareholder of the licensee.
(14)
Where any person ceases to be a substantial shareholder of a licensee, the licensee must notify the Registrar in writing of the cessation not later than 7 days after becoming aware of the cessation.
(15)
Any person who, without reasonable excuse, contravenes subsection (1), (2), (11), (13) or (14) shall be guilty of an offence and shall be liable on conviction —
to a fine not exceeding $20,000; and
in the case of a continuing offence, to a further fine not exceeding $2,000 for every day or part of a day during which the offence continues after conviction.
(16)
Where —
a person has obtained the Registrar’s approval under section 12(1)(d)(i) of this Act as in force immediately before 30 November 2018 for the person to become a substantial shareholder of a licensee; and
the approval has not been cancelled,the person is treated as having been granted the Registrar’s approval under subsection (5)(a) to become a substantial shareholder.
(17)
Where —
a substantial shareholder has obtained the Registrar’s approval under section 12(1)(d)(ii) of this Act as in force immediately before 30 November 2018 for the substantial shareholder to increase the person’s substantial shareholding in the licensee; and
the approval has not been cancelled,the substantial shareholder is treated as having been granted the Registrar’s approval under subsection (5)(a) to increase the substantial shareholding.[12