Singapore legislation

Clause 36

Capital adequacy requirements

(1)

The Authority may, from time to time, by notice in writing to any designated financial holding company or a class of designated financial holding companies, require the designated financial holding company, or class of designated financial holding companies, to maintain, on a consolidated basis in aggregate with any one or more companies in which the designated financial holding company has a major stake, as the Authority may determine, such amount of capital adequacy, as calculated in the form and manner determined by the Authority.

(2)

Notwithstanding subsection (1), the Authority may, if it considers appropriate in the particular circumstances of a designated financial holding company, or a class of designated financial holding companies, having regard to —

(a)

the risks arising from the activities of the designated financial holding company and its FHC group, or of the class of designated financial holding companies and their respective FHC groups, as the case may be; and (b)such other factors as the Authority considers relevant, vary the amount of capital adequacy to be maintained by that designated financial holding company or class of designated financial holding companies.

(3)

Where a designated financial holding company fails to comply with any requirement under subsection (1) or (2), the Authority may, without prejudice to subsection (4), by notice in writing to the designated financial holding company —

(a)

restrict or suspend the activities of the designated financial holding company; or

(b)

give such other directions to the designated financial holding company as the Authority considers appropriate, and the designated financial holding company shall comply with such directions.

(4)

Any designated financial holding company which fails to comply with —

(a)

any requirement of the Authority under subsection (1) or (2); or

(b)

any direction of the Authority under subsection (3),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.

(5)

In subsection (1), “major stake” has the meaning as defined in section 31(10).

Read in full context — Financial Holding Companies Bill →