Clause 7

by inserting, immediately after section 12, the following section:“Removal of partner, director or executive officer12A.—

Notwithstanding the provisions of any other written law, where the Authority is satisfied that a director of a licensee which is incorporated in Singapore, or a partner or an executive officer of a licensee —

has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after the date of commencement of section 7(a) of the Financial Institutions (Miscellaneous Amendments) Act 2013, being an offence —

involving fraud or dishonesty;

the conviction for which involved a finding that he had acted fraudulently or dishonestly; or

that is specified in the Third Schedule to the Registration of Criminals Act (Cap. 268);

is an undischarged bankrupt, whether in Singapore or elsewhere;

has had execution against him in respect of a judgment debt returned unsatisfied in whole or in part;

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;

has had a prohibition order under section 59 of the Financial Advisers Act (Cap. 110), section 35V of the Insurance Act (Cap. 142) or section 101A of the Securities and Futures Act (Cap. 289) made against him that remains in force;

has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Singapore or elsewhere —

which is being or has been wound up by a court; or

the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in that foreign country or territory;

has wilfully contravened or wilfully caused the licensee to contravene any provision of this Act;

has, without reasonable excuse, failed to secure the compliance of the licensee with this Act, the Monetary Authority of Singapore Act (Cap. 186) or any of the written laws set out in the Schedule to that Act; or

has failed to discharge any of the duties of his office,the Authority may, if it thinks it necessary in the public interest or for the protection of the customers of the licensee, by notice in writing to the licensee, direct the licensee to remove the partner, director or executive officer, as the case may be, from his office or employment within such period as may be specified by the Authority in the notice, and the licensee shall comply with the notice.(2) Without prejudice to any other matter that the Authority may consider relevant, the Authority shall, when determining whether a partner, a director or an executive officer of a licensee has failed to discharge the duties of his office for the purposes of subsection (1)(i), have regard to such criteria as may be prescribed.(3) Before directing a licensee to remove a person from his office or employment under subsection (1), the Authority shall —

give the licensee and the person notice in writing of its intention to do so; and

in the notice referred to in paragraph (a), call upon the licensee and the person to show cause, within such time as may be specified in the notice, why the person should not be removed.(4) If the licensee and the person referred to in subsection (3) —

fail to show cause within the time specified under subsection (3)(b) or within such extended period of time as the Authority may allow; or

fail to show sufficient cause,the Authority may direct the licensee to remove the person under subsection (1).(5) Any licensee which, or any partner, director or executive officer of a licensee who, is aggrieved by a direction of the Authority under subsection (1) may, within 30 days after receiving the direction, appeal in writing to the Minister, whose decision shall be final.(6) Any licensee which fails to comply with a notice issued under subsection (1) 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.(7) No criminal or civil liability shall be incurred by a licensee, or any person acting on behalf of the licensee, in respect of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the licensee under this section.(8) In this section, unless the context otherwise requires —“executive officer”, in relation to a licensee, means any person, by whatever name described, who —

is in the direct employment of, or acting for or by arrangement with, the licensee; and

is concerned with or takes part in the management of the licensee on a day-to-day basis;“regulated financial institution” means a person who carries on a business, the conduct of which is regulated or authorised by the Authority or, if it is carried on in Singapore, would be regulated or authorised by the Authority;“regulatory authority”, in relation to a foreign country or territory, means an authority of the foreign country or territory exercising any function that corresponds to a regulatory function of the Authority under this Act, the Monetary Authority of Singapore Act or any of the written laws set out in the Schedule to that Act.”;

by inserting, immediately after subsection (1) of section 29, the following subsection:“(1A) The Authority may, in its discretion, compound any offence under this Act or any regulations made thereunder (including an offence under a provision which has been repealed) which —

was compoundable under this section at the time the offence was committed; but(b)has ceased to be so compoundable,by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine prescribed for that offence at the time it was committed.”;

by deleting the words “such sum of money” in section 29(2) and substituting the words “the sum of money referred to in subsection (1) or (1A)”; and

by deleting subsection (3) of section 29 and substituting the following subsection:“(3) All sums collected by the Authority under subsection (1) or (1A) shall be paid into the Consolidated Fund.”.