Banking Act 1970 · 2020 Revised Edition · Part 7B · Merchant Banks
55W. Duty to inform Authority of change in shareholding
Feedback & supportLast amended by an amending law of 2020.
A merchant bank in Singapore must give written notice to the Authority within 7 days of the merchant bank becoming aware of —
merchant bank in Singapore
“merchant bank in Singapore” means —(a)a merchant bank incorporated in Singapore; or(b)in the case of a merchant bank incorporated outside Singapore, the branches and offices of the merchant bank located in Singapore;
any transfer, sale or purchase, or any proposed transfer, sale or purchase, of any shares in the merchant bank to or by any person; or
any other agreement or arrangement that results in a person becoming or ceasing to be a substantial shareholder or an indirect controller of the merchant bank.
A merchant bank commits an offence if it fails to comply with subsection (1) and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
merchant bank
“merchant bank” means any company —(a)that holds a valid merchant bank licence granted under section 55S; or(b)that is treated as having been granted a merchant bank licence in accordance with section 64 of the Banking (Amendment) Act 2020;
In this section, “indirect controller”, in relation to a merchant bank —
means any person whether acting alone or together with any other person, and whether with or without holding shares or controlling voting power in a merchant bank —
in accordance with whose directions, instructions or wishes the directors of the merchant bank are accustomed or under an obligation (whether formal or informal) to act; or
that is in a position to determine the policy of the merchant bank; but(b)does not include any person —
who is a director or other officer of the merchant bank and whose appointment has been approved by the Authority; or
in accordance with whose directions, instructions or wishes the directors of the merchant bank are accustomed to act only because the directors act on advice given by the person in the person’s professional capacity.