Singapore legislation
Clause 95
Clause 95
Lapsing, revocation and suspension of licence
(1)
A licence shall lapse —
in the case of a holder of a capital markets services licence, if the holder is wound up or otherwise dissolved, whether in Singapore or elsewhere;
in the case of a representative, if the representative dies; and
in the event of such other occurrence or in such other circumstances as may be prescribed.
(2)
The Authority may revoke a licence —
in the case of a holder of a capital markets services licence —
on any ground on which the Authority may refuse to grant a licence under section 86;
if it fails or ceases to carry on the business in all the regulated activities for which it was licensed;
if the Authority has reason to believe that the holder of the capital markets services licence, or any of its officers or employees, has not performed its duties efficiently, honestly or fairly; or
if the holder of the capital markets services licence contravenes any condition or restriction applicable in respect of its licence, any direction issued to it by the Authority under this Act, or any other provision in this Act; and
in the case of a representative —
on any ground on which the Authority may refuse to grant a licence under section 87;
if he fails or ceases to act as a representative in carrying on business in all the regulated activities for which he was licensed;
if the licence of his principal is revoked;
if the Authority has reason to believe that he has not performed his duties efficiently, honestly or fairly; or
if he contravenes any condition or restriction applicable in respect of his licence, any direction issued to him by the Authority under this Act or any other provision in this Act.
(3)
In a case to which subsection (2) applies, the Authority, if it considers it desirable to do so, may instead of revoking a licence, suspend the licence for a specific period and may at any time extend or cancel the suspension.
(4)
Subject to subsection (5), the Authority shall not revoke or suspend a licence under subsection (2) or (3) without giving the licensed person an opportunity to be heard.
(5)
Where the Authority revokes or suspends a licence on any of the grounds described in section 86(4)(b), (c), (d), (e) or (f)(i) in the case of a capital markets services licence, or on any of the grounds described in section 87(3)(b), (c), (d) or (e)(i) in the case of a representative’s licence, the Authority need not give the licensed person an opportunity to be heard.
(6)
Without prejudice to subsections (2) and (3), the Authority may, on any ground described in subsection (2), issue an order prohibiting the licensed person from performing one or more of the regulated activities to which its licence relates and the order may be permanent or for such period as may be determined by the Authority (referred to in this Division as a prohibition order).
(7)
The Authority shall not issue an order under subsection (6) without giving the licensed person an opportunity to be heard.
(8)
Where the Authority has revoked or suspended a capital markets services licence or issued a prohibition order to a holder of a capital markets services licence, that holder shall —
in the case of a revocation of its licence, forthwith inform all its representatives by notice in writing of such revocation and the representatives who are so informed shall cease to act as representatives of that holder;
in the case of a suspension of its licence, forthwith inform all its representatives by notice in writing of such suspension and the representatives who are so informed shall cease to act as representatives of that holder during the period of the suspension; and
in the case of a prohibition order, forthwith inform all its representatives who perform the regulated activity or activities to which the prohibition order relates, by notice in writing of such prohibition order and the representatives who are so informed shall cease to perform such regulated activity or activities during the period specified in the prohibition order.
(9)
Any licensed person who —
performs a regulated activity while its licence has lapsed or has been revoked or suspended, or in breach of a prohibition order; or
contravenes subsection (8),shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.
(10)
A lapsing, revocation, suspension or expiry of a licence of a person or the issue of a prohibition order shall not operate so as to —
avoid or affect any agreement, transaction or arrangement relating to the regulated activities entered into by such person, whether the agreement, transaction or arrangement was entered into before or after the revocation, suspension or lapsing of the licence or the issue of the prohibition order, as the case may be; or
affect any right, obligation or liability arising under any such agreement, transaction or arrangement.