Singapore legislation
Regulation 15
Regulation 15
Merger, etc., of card issuer affecting amounts outstanding of Singapore cardholder, etc.
Subregulation 1
A card issuer which has issued a credit card or charge card to a Singapore cardholder shall give written notice to the Authority before the card issuer or any of its affiliated corporations —
merges or consolidates with another card issuer which has issued a credit card or charge card, or a corporation which has granted a fully unsecured or partially secured non-card credit facility, to the same Singapore cardholder;
acquires all the shares in another card issuer which has issued a credit card or charge card, or a corporation which has granted a fully unsecured or partially secured non-card credit facility, to the same Singapore cardholder; or
acquires the business of another card issuer which has issued a credit card or charge card, or a person who has granted a fully unsecured or partially secured non-card credit facility, to the same Singapore cardholder.
Subregulation 2
If, upon the merger, consolidation or acquisition, the Singapore cardholder’s aggregate outstanding card amount exceeds his maximum credit limit, or his total outstanding unsecured amount exceeds his overall credit limit, then the following persons shall take such steps within such period as may be specified by the Authority by notice in writing to the person to ensure that the Singapore cardholder’s aggregate outstanding card amount or total outstanding unsecured amount ceases to be in excess of his maximum credit limit or overall credit limit, as the case may be:
the card issuer or the card issuer that is formed as a result of the merger or consolidation (as the case may be);
if the entity that underwent or undertook the merger, consolidation or acquisition is an affiliated corporation of the card issuer, the card issuer.
Subregulation 3
Any card issuer which contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Subregulation 4
Any card issuer which contravenes paragraph (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.