Singapore legislation
Regulation 14
Regulation 14
Affiliated entity over which the bank has no effective control
Subregulation 1
Where an entity falls within the definition of “affiliated entity” under regulation 12(1)(a), (b), (c) or (e), but not regulation 12(1)(d), and the Authority is satisfied that —
the affiliated entity is not under the effective control of the bank; and
the bank is not exposed to any material risk by virtue of —
that affiliated entity’s beneficial interest in the share capital, accumulated funds or contributed capital of other entities;
that affiliated entity’s control of voting power in other entities; or
that affiliated entity’s interest in other entities,the Authority may, by notice in writing to the bank, declare that regulation 13(1) shall not apply to any beneficial interest in the share capital, accumulated funds or contributed capital of any entity, any control of voting power in any entity, or any interest in any entity, held by that affiliated entity, and in such event, regulation 13(1) shall not apply accordingly with effect from the date specified in the declaration, until such time as the declaration is revoked.
Subregulation 2
The Authority may upon making a declaration under paragraph (1) and from time to time, impose such conditions as the Authority considers appropriate and if any of the conditions are not complied with at any time, the Authority may revoke the declaration by notice in writing to the bank.
Subregulation 2A
The Authority may vary or revoke any condition imposed under paragraph (2).
Subregulation 3
Without prejudice to paragraph (2), the Authority may, by notice in writing to a bank, revoke a declaration made under paragraph (1) if the Authority is satisfied that —
the affiliated entity has come under the effective control of the bank; or
the bank has become exposed to material risk by virtue of —
that affiliated entity’s beneficial interest in the share capital, accumulated funds or contributed capital of other entities;
that affiliated entity’s control of voting power in other entities; or
that affiliated entity’s interest in other entities,and in such event, regulation 13(1) shall apply to that affiliated entity accordingly with effect from the date specified in the notice of revocation.
Subregulation 4
Without prejudice to paragraph (3), a declaration under paragraph (1) shall automatically be revoked if and when the affiliated entity falls within the definition of “affiliated entity” under regulation 12(1)(d), whether or not that affiliated entity continues to fall within the definition of “affiliated entity” under regulation 12(1)(a), (b), (c) or (e).