Singapore legislation
Clause 35
Clause 35
Minimum capital requirements
(1)
A designated financial holding company shall have a minimum paid-up ordinary share capital of not less than the highest amount of the paid-up capital which any of its subsidiaries that is a bank incorporated in Singapore or a licensed insurer incorporated, formed or established in Singapore is required to hold under the Banking Act (Cap. 19) or the Insurance Act (Cap. 142), respectively.
(2)
A designated financial holding company shall have capital funds of not less than the highest amount of the paid‑up capital which any of its subsidiaries that is a bank incorporated in Singapore or a licensed insurer incorporated, formed or established in Singapore is required to hold under the Banking Act or the Insurance Act, respectively.
(3)
Notwithstanding subsections (1) and (2), the Authority may, from time to time, by notice in writing, require a designated financial holding company or a class of designated financial holding companies to maintain paid-up capital and capital funds in Singapore of such amount, and in such manner as the Authority considers appropriate, having regard to the risks arising from the activities of the designated financial holding company and its FHC group and such other factors as the Authority considers relevant.
(4)
A designated financial holding company shall not, without the approval of the Authority —
reduce its paid-up capital; or
purchase or otherwise acquire shares issued by the designated financial holding company if such shares are to be held as treasury shares.
(5)
For the purposes of subsections (1), (2) and (3), a designated financial holding company shall not maintain its paid‑up capital and capital funds in any foreign currency or currencies without the approval of the Authority.
(6)
Any designated financial holding company which fails to comply with any requirement under subsection (1), (2) or (3) shall immediately notify the Authority.
(7)
Where the designated financial holding company fails to comply with subsection (1), (2) or (4), or any requirement under subsection (3), the Authority may, without prejudice to subsection (8), by notice in writing to the designated financial holding company —
restrict or suspend the activities of the designated financial holding company; or
give such other directions to the designated financial holding company as the Authority considers appropriate.
(8)
Any designated financial holding company which fails to comply with —
subsection (1), (2) or (5);
any requirement of the Authority under subsection (3); or
any direction of the Authority under subsection (7),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, “paid-up capital” does not include any amount that is represented by treasury shares.