Banking Act 1970 · 2020 Revised Edition · Part 7B · Merchant Banks
55ZF. Application of provisions in Part 5
Feedback & supportLast amended by an amending law of 2022. 2 amendments in all.
Subject to section 55R, section 29A read with the Fifth Schedule (as applied by section 55ZL) applies to or in relation to a merchant bank in Singapore or a class of merchant banks in Singapore as it applies to or in relation to a bank in Singapore or a class of banks in Singapore.
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;
Subject to section 55R, section 32 applies to or in relation to a merchant bank in Singapore as it applies to or in relation to a bank in Singapore, subject to the following modifications:
bank in Singapore
“bank in Singapore” means —(a)a bank incorporated in Singapore; or(b)in the case of a bank incorporated outside Singapore, the branches and offices of the bank located within Singapore;
the following definition applies in place of the definition of “major stake” in section 32(7): “ “major stake”, in relation to an entity, means —
any beneficial interest exceeding 20% of the total number of issued shares (or, in the case of an umbrella VCC, either exceeding 20% of the total number of issued shares in the umbrella VCC that are not in respect of any of its sub-funds, or exceeding 20% of the total number of issued shares in the umbrella VCC in respect of any one of its sub-funds) or another measure corresponding to shares in a company that is prescribed;
control of more than 20% of the voting power (or, in the case of an umbrella VCC, either more than 20% of the voting power in the umbrella VCC that is not in respect of any of its sub-funds, or more than 20% of the voting power in the umbrella VCC in respect of any one of its sub-funds) or another measure corresponding to voting power in a company that is prescribed; or
any interest in the entity, by reason of which —
the management of the entity is accustomed or under an obligation, (whether formal or informal) to act in accordance with the merchant bank’s directions, instructions or wishes; or
the merchant bank is in a position to determine the policy of the entity;”;
the following definition applies in place of the definition of “prohibited business” in section 32(7):“ “prohibited business” means any business other than the businesses mentioned in section 55V.”.
The Authority may make regulations under section 78 to provide for the matters mentioned in section 35 in relation to a merchant bank in Singapore, and for this purpose, the reference in that section to a bank in Singapore is to a merchant bank in Singapore.