Clause 12

The Authority may, if it appears to the Authority to be necessary or expedient in the public interest or the interest of the financial system, by notice in writing to finance companies give directions or impose requirements on or relating to the activities or operations of and standards to be maintained by finance companies.(2) Without prejudice to the generality of subsection (1), any notice under that subsection may be given in respect of —

the revaluation of the assets of finance companies;

the maintenance of credit files of borrowers and classification of loans, advances and credit facilities of a finance company;

restrictions on the granting of Singapore dollar credit facilities in whatever form or by whatever means to residents of Singapore where such facilities are to be used outside Singapore, or to non-residents;

the appointment of directors, chief and deputy chief executive officers of a finance company;

the code of conduct governing the manner and method by which a finance company solicits business and deals with its customers, the procedures for the reporting of transactions between a finance company and its employees, and conflicts of interest involving the finance company and its employees or involving the finance company and its customers;

the maximum aggregate permissible percentage holdings by any class, category or description of persons of interests in shares of a finance company;

the preparation by finance companies of profit and loss accounts and balance-sheets and the form and content thereof;

the conditions under which finance companies can engage in the financing of trade and inventory;

the forms, returns and submission of statistics for the purposes of this Act;

the provision for and writing off of bad debts by a finance company.(3) Every finance company shall comply with any direction or requirement imposed by any notice under this section.(4) Every notice in writing issued by the Authority before the date of commencement of the Finance Companies (Amendment) Act 1994 (other than a notice which was issued pursuant to another provision of this Act) shall, if such notice could have been issued under this section, be deemed to be so issued on that date.”.