Singapore legislation
Clause 289
Clause 289
Approval of trustees
(1)
The Authority may, upon an application made to it in such form and manner as may be prescribed, approve a public company to act as a trustee for collective investment schemes which are authorised under section 286 and constituted as unit trusts (referred to in this Subdivision as an approved trustee).
(2)
The Authority shall not approve a public company to act as trustee under subsection (1) unless the company satisfies such financial requirements and other criteria as the Authority may prescribe.
(3)
An approved trustee shall continue to satisfy the financial requirements and other criteria prescribed under subsection (2).
(4)
Where the Authority is of the opinion that an approved trustee —
has failed to satisfy a financial requirement or other criterion prescribed under subsection (2);
has not carried out its duties with due care and diligence;
has acted in a manner which prejudices the participants of any authorised collective investment scheme; or
has failed to comply with this Act or the Code on Collective Investment Schemes,the Authority may —
revoke an approval granted under this section and may direct the manager for the collective investment scheme or schemes which such approved trustee was acting for, to appoint a new trustee for the scheme or schemes;
prohibit such approved trustee from acting as trustee for any new collective investment scheme; or
issue such direction as it deems fit.
(5)
An approved trustee shall comply with any direction issued to it under subsection (4).
(6)
For the avoidance of doubt, a direction issued under subsection (4) shall be deemed not to be subsidiary legislation.
(7)
Any approved trustee who contravenes subsection (3) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.