Singapore legislation

Clause 91

of Securities and Futures (Amendment) Bill

Clause 91

Repeal and re-enactment of section 304 and new section 304A

Section 304 of the principal Act is repealed and the following sections substituted therefor:“Offer or invitation made to certain institutions or persons

304. Subdivisions (2) and (3) of this Division shall not apply to an offer to the public of units in a collective investment scheme for subscription or purchase, or an invitation to the public to subscribe for or purchase units in a collective investment scheme, made to —

(a)

a bank that is licensed under the Banking Act (Cap. 19);

(b)

a merchant bank that is approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);

(c)

a finance company licensed under the Finance Companies Act (Cap. 108);

(d)

a company or society registered under the Insurance Act (Cap. 142) as an insurer;

(e)

a company registered under the Trust Companies Act (Cap. 336);

(f)

the Government or a statutory body;

(g)

a pension fund or collective investment scheme;

(h)

the holder of a capital markets services licence for —

(i)

dealing in securities;

(ii)

fund management;

(iii)

providing custodial services for securities;

(iv)

securities financing; or

(v)

trading in futures contracts;

(i)

a person which carries on the business of dealing in bonds with —

(i)

accredited investors; or

(ii)

persons whose business involves the acquisition and the disposal or holding of securities (whether as principal or agent); or

(j)

any other person who has been declared by the Authority as an exempt purchaser or is within a class of persons declared by the Authority as exempt purchasers.First sale of units acquired under exemption in section 304304A.—

(1)

Subject to subsection (2), where units in a collective investment scheme initially acquired pursuant to an exemption in section 304 are first sold to any person other than one specified in that section, the offer for sale of, or invitation to purchase, those units made to that person shall be regarded as an offer or invitation to the public in respect of units in a collective investment scheme.(2) Where units in a collective investment scheme initially acquired pursuant to an exemption in section 304 are first sold to any sophisticated investor, section 305 shall apply to the offer for sale of, or invitation to purchase, those units made to that sophisticated investor as if it were an offer to the public of units in a collective investment scheme for subscription or purchase, or an invitation to the public to subscribe for or purchase units in a collective investment scheme, made to a sophisticated investor.(3) In subsection (2), “sophisticated investor” has the same meaning as in section 305.”.

Read in full context — Securities and Futures (Amendment) Bill →