Singapore legislation
Clause 56
Clause 56
Approval of chief executive officer and director of licensed financial adviser
(1)
No licensed financial adviser shall appoint a person as its chief executive officer or director in Singapore unless it has obtained the approval of the Authority.
(2)
Without prejudice to any other matter that the Authority may consider relevant, the Authority shall, in determining whether to grant its approval under subsection (1), have regard to such criteria as may be prescribed or as may be specified in written directions.
(3)
Subject to subsection (4), the Authority shall not refuse an application for approval under subsection (1) without giving the licensed financial adviser an opportunity to be heard.
(4)
The Authority may refuse an application for approval under subsection (1) on any of the following grounds without giving the licensed financial adviser an opportunity to be heard:
the person is an undischarged bankrupt, whether in Singapore or elsewhere;
the person has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation;
execution against the person in respect of a judgment debt has been returned unsatisfied in whole or in part;
the person has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that he acted fraudulently or dishonestly.
(5)
Where the Authority refuses an application for approval under subsection (1), the Authority need not give the person who was proposed to be appointed an opportunity to be heard.
(6)
Any licensed financial adviser which is aggrieved by the decision of the Authority under subsection (1) may, within 30 days of the decision of the Authority, appeal in writing to the Minister.
(7)
Any licensed financial adviser which, without reasonable excuse, contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
(8)
In this section, “chief executive officer” means any person, by whatever name described, who is —
in the direct employment of, or acting for or by arrangement with, a licensed financial adviser; and
principally responsible for the management and conduct of any type of business of the financial adviser in Singapore.