Singapore legislation

Clause 99

Exemptions from requirement to hold capital markets services licence

(1)

The following persons shall be exempted in respect of the following regulated activities from the requirement to hold a capital markets services licence to carry on business in such regulated activities:

(a)

any bank licensed under the Banking Act (Cap. 19) in respect of any regulated activity;

(b)

any merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186) in respect of any regulated activity which it is approved to carry out under that Act;

(c)

any finance company licensed under the Finance Companies Act (Cap. 108) in respect of any regulated activity that is not prohibited by that Act or for which an exemption from section 25(2) of that Act has been granted;

(d)

any company or society registered under the Insurance Act (Cap. 142) in respect of fund management for the purpose of carrying out insurance business;

(e)

any person licensed under the Financial Advisers Act 2001 in respect of any regulated activity that is solely incidental to his carrying on of the business for which he is licensed under that Act;

(f)

any securities exchange, futures exchange or recognised trading system provider in respect of any regulated activity that is solely incidental to its operation of a stock market or futures market, as the case may be;

(g)

any clearing house in respect of any regulated activity that is solely incidental to its operation of a clearing facility; and

(h)

such other person or class of persons in respect of any regulated activity as may be prescribed.

(2)

Any securities exchange, futures exchange or recognised trading system provider which intends to carry on business in any regulated activity but which does not fall within subsection (1)(f), may apply in writing to the Authority for exemption from the requirement to hold a capital markets services licence and the Authority may grant such exemption if in the Authority’s opinion, the carrying on of the activities referred to in subsection (1) is not a significant business of the securities exchange, futures exchange or recognised trading system provider.

(3)

Without prejudice to section 341, the Authority may prescribe the criteria or factors that it will consider in deciding whether to grant an exemption under subsection (2).

(4)

The Authority may by regulations or by notice in writing impose such conditions or restrictions on an exempt person or its representative in relation to the conduct of the regulated activity or any related matter as the Authority thinks fit and the exempt person or its representative, as the case may be, shall comply with such conditions or restrictions.

(5)

Any exempt person or representative of an exempt person, who contravenes any provision of this Act which is applicable to it or any condition or restriction imposed under subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.

(6)

The Authority may revoke an exemption granted to any exempt person under this section —

(a)

if it contravenes any provision of this Act which is applicable to it or any condition or restriction imposed on it under subsection (4);

(b)

if it contravenes any direction issued to it under section 101(1); or

(c)

if the Authority considers that it is carrying on business in a manner that is, in the opinion of the Authority, contrary to the public interest.

(7)

Where the Authority revokes an exemption granted to any person under this section, the Authority need not give the person an opportunity to be heard.

(8)

A withdrawal of an exemption shall not operate so as to —

(a)

avoid or affect any agreement, transaction or arrangement relating to the regulated activities entered into by such exempt person, whether the agreement, transaction or arrangement was entered into before or after, the withdrawal of the exemption; or

(b)

affect any right, obligation or liability arising under any such agreement, transaction or arrangement.

(9)

An exempt person that is aggrieved by a decision of the Authority made under subsection (6) may, within 30 days after it is notified of the Authority’s decision, appeal to the Minister whose decision shall be final.

Read in full context — Securities and Futures Bill →