Clause 25

The Authority may, by notice in writing, direct a licensed insurer that is incorporated in Singapore to obtain from any shareholder of the insurer, and to transmit to the Authority, information —

as to whether that shareholder holds any voting shares in the insurer as beneficial owner or as trustee; and

if that shareholder holds those shares as trustee, indicating as far as that shareholder is able to provide the person or persons for whom that shareholder holds those shares (either by name or by other particulars sufficient to enable the person or persons to be identified) and the nature of the interests of the person or persons,and the insurer shall comply with that direction within such time as is specified in the notice.(2) The Authority may, by notice in writing, require any shareholder of a licensed insurer which is incorporated in Singapore, or any person (referred to in this subsection as the relevant person) who appears from information provided to the Authority under subsection (1) or this subsection to have an interest in any share in a licensed insurer which is incorporated in Singapore, to provide to the Authority, within such time as may be specified in the notice or within such extended period of time as the Authority may allow, any information relating to the shareholder or the relevant person, as the case may be, which the Authority may require for the purpose of ascertaining or investigating into the control of shareholding or voting power in the insurer, or exercising any power or function under sections 28 to 29C, including any information —

as to whether the shareholder holds any share, or the relevant person holds that interest, as beneficial owner or as trustee, and if he holds that share or interest as trustee, indicating as far as he can the person for whom he holds that share or interest (either by name or by other particulars sufficient to enable that person to be identified) and the nature of that person’s interest; or

as to whether any share or any voting right attached to the share is the subject of an agreement or arrangement described in section 28(7)(c)(ix) or 29(2), and if so, giving particulars of the agreement or arrangement and the parties to it, and the shareholder or the relevant person, as the case may be, shall comply with that notice within such time as may be specified therein.(3) Any person who —

fails to comply with a notice under this section; or

in purported compliance with the notice, knowingly or recklessly furnishes any information or document that is false or misleading in a material particular,shall be guilty of an offence.(4) Any person convicted of an offence under subsection (3) shall be liable on conviction —

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction; or

in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.(5) Where a person claims, before furnishing the Authority with any information or documents that he is required to furnish under subsection (2), that the information or documents might tend to incriminate him, the information or documents shall not be admissible in evidence against him in criminal proceedings other than proceedings under sections 28, 29, 29A and 29B.Application of sections 27 to 30 to licensed insurer that is co-operative society30A. Sections 27 to 30 shall apply, with the necessary modifications, to a licensed insurer that is a co‑operative society as if it were a licensed insurer incorporated in Singapore.Investment in corporations30B.—

No licensed insurer which is established or incorporated in Singapore shall acquire or hold, directly or indirectly, a major stake in any corporation without the prior approval of the Authority.(2) No licensed insurer which is incorporated outside Singapore shall, without the prior approval of the Authority —

acquire, directly or indirectly, a major stake in any corporation using any of the assets of any insurance fund established and maintained by the licensed insurer under this Act; or

hold, directly or indirectly, a major stake in any corporation as assets of any insurance fund established and maintained by the licensed insurer under this Act.(3) Notwithstanding subsections (1) and (2) —

a licensed insurer who is a licensed insurer by virtue of section 68 of the Insurance (Amendment) Act 2013 may, during a period of 6 months after the date of commencement of section 25 of that Act or such longer period as the Authority may allow in any particular case, without the prior written approval of the Authority —

if the insurer is one referred to in subsection (1), hold, directly or indirectly, a major stake in any corporation; or

if the insurer is one referred to in subsection (2), hold, directly or indirectly, a major stake in any corporation using any of the assets, or as assets, as the case may be, of any insurance fund established and maintained by the licensed insurer under this Act,if the acquisition of the major stake was made before the date of commencement of section 25 of the Insurance (Amendment) Act 2013 and the insurer was not required by a condition of its registration under this Act in force immediately before that date to obtain the Authority’s approval to such acquisition or the holding of the major stake; but(b)the licensed insurer shall not continue to hold any major stake referred to in paragraph (a) after the period referred to in that paragraph unless it has obtained the approval of the Authority.(4) Any approval granted by the Authority under this section for a licensed insurer to acquire or hold, directly or indirectly, a major stake in a corporation may be subject to such conditions as the Authority may determine, including any condition relating to the operations or activities of the corporation.(5) The Authority may at any time add to, vary or revoke any condition imposed under subsection (4).(6) This section shall not apply to —

any interest held by way of security for the purposes of a transaction entered into in the ordinary course of business of an insurer;

any shareholding or interest acquired or held by an insurer in the course of satisfaction of debts due to it which is disposed of at the earliest suitable opportunity; and

such other interest as may be prescribed.(7) The Authority may, by regulations —

exclude the operation of this section in respect of any corporation or class of corporations, subject to such conditions as may be prescribed;

provide for the manner of computation of major stakes; and

provide that any interest or control referred to in the definition of “major stake” in subsection (9) that is acquired or held, directly or indirectly, by a corporation in which a licensed insurer has, directly or indirectly, a major stake, shall be deemed to be acquired or held by the insurer.(8) Any licensed insurer which contravenes subsection (1) or (2), or fails to comply with any condition imposed or prescribed under this section, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.(9) In this section, unless the context otherwise requires —

“major stake” means —

any beneficial interest exceeding 10% of the total number of issued shares or such other measure corresponding to shares in a corporation as may be prescribed;

control over more than 10% of the voting power or such other measure corresponding to voting power in a corporation as may be prescribed; or

any interest in a corporation, where the directors of the company are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the licensed insurer concerned, or where the insurer is in a position to determine the policy of the corporation; and

a reference to voting power in a corporation is a reference to the total number of votes that might be cast in a general meeting of the corporation.(10) Any approval to acquire or hold a major stake in a corporation that was granted by the Authority before the date of commencement of section 25 of the Insurance (Amendment) Act 2013 to an insurer pursuant to a condition of the insurer’s registration under this Act in force before that date shall, if such approval remains in force immediately before that date, be deemed to be an approval granted under this section.”.