Regulation 12

any subsidiary of the bank;

any entity in which the bank and its subsidiaries hold in the aggregate a beneficial interest in not less than 20% of the share capital, accumulated funds or contributed capital;

any entity in which the bank and its subsidiaries control in the aggregate not less than 20% of the voting power;

any other entity where the management of the entity is accustomed or under an obligation, whether formal or informal, to act in accordance with the bank’s directions, instructions or wishes, or where the bank is in a position to determine the policy of the entity; or

any subsidiary of an entity referred to in sub-paragraph (b), (c) or (d).

acquired by a bank or any entity referred to in paragraph (1) (referred to in this paragraph as the relevant entity) pursuant to an arrangement with a person who has a trading account with the relevant entity, and transferred to the trading account of that person within 2 market days from the date of acquisition; or

acquired or held by the relevant entity in the course of satisfaction of debts due to it and disposed of at the earliest suitable opportunity,shall be excluded for the purpose of determining whether the entity is an affiliated entity of the bank.

for the benefit of any person other than the bank or its subsidiary, or any other affiliated entity of the bank (referred to in this paragraph as the beneficiary) pursuant to an obligation imposed under any written law, rule of law, contract or order of court; and

used or exercised by the bank or its subsidiary primarily for the benefit of the beneficiary,shall be excluded for the purpose of determining whether the entity is an affiliated entity of the bank, unless —

the control of voting power in the entity is held by a bank’s subsidiary that is an insurer licensed under the Insurance Act (Cap. 142), through —

any insurance fund established and maintained under the Insurance Act for its general business;

any insurance fund established and maintained under the Insurance Act (Cap. 142) for its non-participating policies;

any insurance fund established and maintained under the Insurance Act for its participating policies, and which relates to assets held other than for the purpose of meeting the liabilities in respect of the policies of the insurance fund; or

any insurance fund established and maintained under the Insurance Act for its investment-linked policies, and which relates to assets held other than for the purpose of meeting those liabilities in respect of the policies of the insurance fund, the values of which are dependent on the value of the underlying assets; or

the Authority (having regard to the specific circumstances of the case including whether the bank or its subsidiaries has investment and voting policies that comply with guidelines issued by the Authority) is of the opinion that the control of voting power in the entity is in fact not being used or exercised primarily for the benefit of the beneficiary, and the Authority issues a declaration by notice in writing to the bank that such control of voting power in the entity shall, with effect from the date of the declaration, be included for the purpose of determining whether that entity is an affiliated entity of the bank.