Singapore legislation
Clause 4
Clause 4
Power of Authority to designate financial holding companies
(1)
The Authority may, by order published in the Gazette, designate a financial holding company as a designated financial holding company if it is —
an ultimate financial holding company incorporated, formed or established in Singapore; or
an intermediate financial holding company incorporated, formed or established in Singapore, and the operations of any bank incorporated in Singapore, or any licensed insurer incorporated, formed or established in Singapore, that is its subsidiary is considered by the Authority —
to be significant to the FHC group of the intermediate financial holding company; or
to affect the stability of, or public confidence in, the financial system in Singapore.
(2)
For the purposes of subsection (1)(b), where an intermediate financial holding company is a part of the FHC group of an ultimate financial holding company that is incorporated, formed or established outside Singapore, the Authority may, in deciding whether to designate the intermediate financial holding company as a designated financial holding company, consider the extent to which the foreign supervisory authority supervises the FHC group of the ultimate financial holding company.
(3)
Any order made under subsection (1) shall identify the designated financial holding company and shall continue to have effect until it is withdrawn by the Authority.
(4)
A financial holding company which is aggrieved by a decision of the Authority to designate the financial holding company as a designated financial holding company may, within 30 days after the order is published in the Gazette, appeal in writing to the Minister whose decision shall be final.
(5)
Notwithstanding the lodging of an appeal under subsection (4), the designation by the Authority under this section shall continue to have effect pending the decision of the Minister.
(6)
The Minister may, when deciding an appeal under subsection (4), confirm or reverse the designation of the financial holding company as a designated financial holding company, and a decision to reverse the designation shall have effect from the date of the decision of the Minister.
(7)
In this section —
Definition
“foreign supervisory authority” means the supervisory authority which is responsible, under the laws of the country or territory where the ultimate financial holding company referred to in subsection (2) is incorporated, formed or established, for —
supervising the ultimate financial holding company; and
exercising consolidated supervision over the ultimate financial holding company and its FHC group;
Definition
“intermediate financial holding company” means a financial holding company that is not an ultimate holding company;
Definition
“ultimate financial holding company” means a financial holding company that is an ultimate holding company;
Definition
“ultimate holding company” has the same meaning as in section 5A of the Companies Act (Cap. 50), except that any reference to “corporation” in that section shall be construed as if it did not exclude a co‑operative society.