Clause 39

The Authority may, by notice in writing, make a prohibition order against a relevant person if —

the Authority suspends or revokes the capital markets services licence held by the person;

where the person is exempt from the requirement to hold a capital markets services licence under section 99(1)(a), (b), (c) or (d), the Authority has reason to believe that circumstances exist under which, if the person were a holder of a capital markets services licence, there would exist a ground on which the Authority may suspend or revoke its licence under section 95;

the Authority suspends or revokes the status of that person as an appointed, provisional or temporary representative;

the Authority has reason to believe that the person is contravening, is likely to contravene or has contravened any provision of this Act;

the person has been convicted of an offence under this Act or 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;

the person has an order for the payment of a civil penalty made against him by a court under Part XII or has entered into an agreement with the Authority to pay a civil penalty under that Part;

the person has been convicted of an offence involving the contravention of any law or requirement of a foreign country or territory relating to any regulated activity carried out by that person; or

the person has been removed at the direction of the Authority from office or employment as an officer of the holder of a capital markets services licence under section 97(1)(h).(2) In subsection (1), “relevant person” means —

the holder of a capital markets services licence or a person who was previously such a holder;

a person that is exempt from the requirement to hold a capital markets services licence under section 99(1) or a person who was previously so exempt;

a representative of a person exempt from the requirement to hold a capital markets services licence under section 99(1)(f), (g) or (h) or a person who was previously such a representative;

an appointed, provisional or temporary representative or a person who was previously such a representative; (e)an officer of the holder of a capital markets services licence or a person that is exempt from the requirement to hold a capital markets services licence under section 99(1), or a person who was previously such an officer; or

a person who has been convicted of an offence under section 82(1) or 99B(1).(3) A prohibition order made under subsection (1) may do one or both of the following:

prohibit the person, whether permanently or for a specified period, from —

performing any regulated activity, or performing such regulated activity in specified circumstances or capacities; or

taking part, directly or indirectly, in the management of, acting as a director of, or becoming a substantial shareholder of —

a holder of a capital markets services licence; or

an exempt person;

include a provision allowing the person, subject to any condition specified in the order —

to do specified acts; or

to do specified acts in specified circumstances,that the order would otherwise prohibit him from doing.(4) The Authority shall not make a prohibition order against a person without giving the person an opportunity to be heard.(5) Any person who is aggrieved by the decision of the Authority to make a prohibition order against him may, within 30 days of the decision, appeal in writing to the Minister.(6) Where the Authority makes a prohibition order against any person who is an appointed, provisional or temporary representative, it shall indicate against his name in the public register of representatives that fact, and the indication shall remain in the register for the duration of the order.Effect of prohibition orders101B.—

A person against whom a prohibition order is made shall comply with the prohibition order.(2) Where a prohibition order is made against a person and notified to the holder of a capital markets services licence or an exempt person, the holder or exempt person shall not employ the first-mentioned person to carry out any regulated activity or use the first-mentioned person’s service, to the extent that this is prohibited by the order.(3) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 or to imprisonment for a term not exceeding 2 years or to both.(4) Any person who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.(5) The holder of a capital markets services licence or an exempt person against whom a prohibition order has been issued prohibiting it from carrying on any regulated activity shall immediately inform all its representatives who perform the regulated activity, by notice in writing of such prohibition order, and the representatives who are so informed shall cease to perform such regulated activity during the period specified in the prohibition order.(6) Any person who contravenes subsection (5) 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.Variation or revocation of prohibition orders101C.—

The Authority may vary or revoke a prohibition order, by giving written notice to the person against whom the order was made, if the Authority is satisfied that it is appropriate to do so because of a change in any of the circumstances based on which the Authority made the order.(2) The Authority may vary or revoke a prohibition order under subsection (1) —

on its own initiative; or

if the person against whom the order was made lodges with the Authority an application for the Authority to do so, accompanied by such document and fee as may be prescribed.(3) The Authority shall not vary a prohibition order made against a person under subsection (2)(a) without giving the person an opportunity to be heard.(4) Any person who is aggrieved by the decision of the Authority to vary a prohibition order made against him under subsection (2)(a) may, within 30 days of the decision, appeal in writing to the Minister.Date and effect of prohibition orders101D.—

A prohibition order, or any variation or revocation of a prohibition order, shall take effect on the date specified in the order by the Authority.(2) A prohibition order shall not operate so as to —

avoid or affect any agreement, transaction or arrangement entered into by the person against whom the order is made, whether the agreement, transaction or arrangement was entered into before, on or after the issue of the prohibition order; or

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