Singapore legislation

Clause 10

New sections 11A to 11D

(1)

The Moneylenders Act is amended by inserting, immediately after section 11, the following sections:“Approval before employing or engaging assistant, etc.11A.—

(1)

A licensee must not, without the written approval of the Registrar, employ or engage any assistant.(2) An application for the Registrar’s approval mentioned in subsection (1) must be made in such form and manner as the Registrar may specify.(3) On an application by a licensee for the Registrar’s approval mentioned in subsection (1), the Registrar may —

(a)

grant the approval applied for; or

(b)

refuse to grant the approval applied for.(4) The Registrar must refuse to grant an approval under subsection (3)(b) if the Registrar is not satisfied that the person in respect of whom the approval is sought is of good character and is a fit and proper person.(5) Without limiting subsection (4), the Registrar may refuse to approve as an assistant any person who, whether before, on or after the date of commencement of section 10(1) of the Moneylenders (Amendment) Act 2018 —

(a)

has been convicted of any offence involving dishonesty or moral turpitude;

(b)

has been convicted of any offence under sections 43 to 48 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap. 65A), the Terrorism (Suppression of Financing) Act (Cap. 325) or any regulation made under the United Nations Act (Cap. 339);

(c)

is contravening or has contravened any provision of this Act or any corresponding previous written law;

(d)

has been convicted of any offence under this Act or any corresponding previous written law; or

(e)

has carried on any business of moneylending in Singapore or any foreign country or territory —

(i)

for which the licence has been revoked or suspended under this Act or any corresponding previous written law; or

(ii)

the approval, authorisation, registration or licence of or for which has been withdrawn, cancelled or revoked by a regulatory authority in that foreign country or territory.(6) The Registrar may cancel any approval granted under subsection (3)(a) in respect of a person if the Registrar —

(a)

has reasonable grounds to believe that the approval has been obtained by fraud or misrepresentation;

(b)

is no longer satisfied that the person is of good character; or

(c)

is no longer satisfied that the person is a fit and proper person.(7) The Registrar must not refuse to grant an approval under subsection (3)(b) or cancel any approval under subsection (6) without giving the licensee concerned an opportunity to be heard.(8) Where an approval granted under subsection (3)(a) is cancelled under subsection (6), the Registrar must notify the licensee concerned and the person in respect of whom the approval was granted of the cancellation and the date on which the approval is cancelled.(9) Starting on the date after the date of cancellation of approval specified in the notice under subsection (8) —

(a)

the licensee must stop employing or engaging the person in respect of whom the approval was cancelled; and

(b)

the person in respect of whom the approval was cancelled must cease to act for the licensee.(10) Every licensee must submit to the Registrar, in such form and manner and at such time as the Registrar may specify, the names and particulars of every assistant who, as at the date of the submission, is employed or engaged by the licensee.(11) Every licensee must notify the Registrar, in writing, when any person ceases to be employed or engaged by the licensee as an assistant, not later than 7 days after the cessation.(12) Any person who, without reasonable excuse, contravenes subsection (1), (9), (10) or (11) shall be guilty of an offence and shall be liable on conviction —

(a)

to a fine not exceeding $20,000; and

(b)

in the case of a continuing offence, to a further fine not exceeding $2,000 for every day or part of a day during which the offence continues after conviction.(13) Where —

(a)

in fulfilment of a condition of a licence imposed under section 5(4), a licensee has obtained, before the date of commencement of section 10(1) of the Moneylenders (Amendment) Act 2018, the approval of the Registrar to employ or engage an assistant; and

(b)

the approval has not been cancelled,the licensee is, on or after that date, treated as having been granted the written approval of the Registrar under subsection (3)(a) to employ or engage the assistant.Approval, notification and submission of information relating to person taking part in management, etc.11B.—

(1)

A licensee must not, without the written approval of the Registrar, permit any person to —

(a)

take part (whether directly or indirectly) in the management of the licensee’s business of moneylending; or

(b)

become a director or partner of the licensee.(2) An application for the Registrar’s approval mentioned in subsection (1) must be made in such form and manner as the Registrar may specify.(3) On an application by a licensee for the Registrar’s approval mentioned in subsection (1), the Registrar may —

(a)

grant the approval applied for; or

(b)

refuse to grant the approval applied for.(4) The Registrar must refuse to grant an approval under subsection (3)(b) if the Registrar is not satisfied that the person in respect of whom the approval is applied for is of good character and is a fit and proper person.(5) Without limiting subsection (4), the Registrar may refuse to grant approval under subsection (3)(b) to any person who, whether before, on or after the date of commencement of section 10(1) of the Moneylenders (Amendment) Act 2018 —

(a)

has been convicted of any offence involving dishonesty or moral turpitude;

(b)

(c)

is contravening or has contravened any provision of this Act or any corresponding previous written law;

(d)

has been convicted of any offence under this Act or any corresponding previous written law; or

(e)

has carried on any business of moneylending in Singapore or any foreign country or territory —

(i)

for which the licence has been revoked or suspended under this Act or any corresponding previous written law; or

(ii)

(a)

has reasonable grounds to believe that the approval has been obtained by fraud or misrepresentation; (b)is no longer satisfied that the person is of good character; or

(c)

(a)

the licensee must not permit the person in respect of whom the approval was cancelled —

(i)

to take part (whether directly or indirectly) in the management of the licensee’s business of moneylending; or

(ii)

to be a director or partner of the licensee; and

(b)

the person in respect of whom the approval was cancelled must —

(i)

cease to take part (whether directly or indirectly) in the management of the licensee’s business of moneylending; or

(ii)

cease to be a director or partner of the licensee.(10) Every licensee must submit to the Registrar, in such form and manner and at such time as the Registrar may specify, the names and particulars of every person who, as at the date of the submission —

(a)

is taking part (whether directly or indirectly) in the management of the licensee’s business of moneylending; or

(b)

is a director or partner of the licensee.(11) Where any person —

(a)

ceases to take part (whether directly or indirectly) in the management of a licensee’s business of moneylending; or

(b)

ceases to be a director or partner of a licensee,the licensee must notify the Registrar in writing of the cessation not later than 7 days after becoming aware of the cessation.(12) Any person who, without reasonable excuse, contravenes subsection (1), (9), (10) or (11) shall be guilty of an offence and shall be liable on conviction —

(a)

to a fine not exceeding $20,000; and

(b)

in the case of a continuing offence, to a further fine not exceeding $2,000 for every day or part of a day during which the offence continues after conviction.(13) Where —

(a)

a licensee has obtained the approval of the Registrar under section 12(1)(b) as in force immediately before the date of commencement of section 10(1) of the Moneylenders (Amendment) Act 2018 for the admission of a person who will be responsible for the management of the licensee’s business of moneylending; and

(b)

the approval has not been cancelled,the licensee is treated as having been granted the written approval of the Registrar under subsection (3)(a) to permit the person to take part (whether directly or indirectly) in the management of the licensee’s business of moneylending.(14) Where —

(a)

a licensee has obtained the approval of the Registrar under section 12(1)(c) as in force immediately before the date of commencement of section 10(1) of the Moneylenders (Amendment) Act 2018 for a person to become a director or partner of the licensee; and

(b)

the approval has not been cancelled,the licensee is treated as having been granted the written approval of the Registrar under subsection (3)(a) to permit the person to become a director or partner of the licensee.Approval of change in business name11C.—

(1)

Every licensee must obtain the written approval of the Registrar before changing the licensee’s business name.(2) An application for the Registrar’s approval mentioned in subsection (1) must be made in such form and manner as the Registrar may specify.(3) On an application by a licensee for the Registrar’s approval mentioned in subsection (1), the Registrar may —

(a)

grant the approval applied for; or

(b)

refuse to grant the approval applied for.(4) The Registrar must not refuse to grant an approval under subsection (3)(b) without giving the licensee concerned an opportunity to be heard.(5) Any licensee who, without reasonable excuse, contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.Notification of certain events11D.—

(1)

If any of the events in subsection (3) occurs on or after the appointed day, the licensee in question must notify the Registrar in writing of the occurrence not later than 7 days after the licensee becomes aware of the event concerned.(2) A licensee must, within the period of 30 days after the appointed day, notify the Registrar in writing of the occurrence of any of the events in subsection (3), if the event occurred within the period of one year immediately preceding the appointed day and the licensee is aware of the occurrence.(3) The events mentioned in subsections (1) and (2) are the following:

(a)

the making of an application to the High Court under the Bankruptcy Act (Cap. 20) for a bankruptcy order against the licensee, any partner, director or substantial shareholder of the licensee, or any manager of the licensee (where the licensee is a limited liability partnership);

(b)

the making of an application to the High Court under the Companies Act (Cap. 50) to summon a meeting of the creditors or members of —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership;

(c)

the making of an application to the High Court under the Companies Act for the court to approve a compromise or arrangement between —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership,and the creditors of the licensee, partner, substantial shareholder or manager, as the case may be, or any class of those creditors, without any meeting of the creditors or class of creditors;

(d)

the making of an application to the High Court under the Companies Act to place under judicial management —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership;

(e)

the making of an order under the Companies Act or the Limited Liability Partnerships Act (Cap. 163A), appointing a receiver or manager, or a receiver and manager, of the property of —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership;

(f)

the passing of a resolution under the Companies Act or the Limited Liability Partnerships Act, for the voluntary winding up of —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership;

(g)

the making of an application to the High Court under the Companies Act or the Limited Liability Partnerships Act, for winding up by an order of the court of —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership;

(h)

the making of a statutory declaration under the Companies Act or the Limited Liability Partnerships Act, in respect of —

(i)

the licensee;

(ii)

any partner or substantial shareholder of the licensee; or

(iii)

any manager of the licensee, where the licensee is a limited liability partnership.(4) When a licensee notifies the Registrar of an event under subsection (1) or (2) —

(a)

the Registrar may require the licensee to notify the Registrar of any further event in relation to that event; and

(b)

the licensee must notify the Registrar of the further event no later than 7 days after the licensee becomes aware that the further event has occurred.(5) Any licensee who, without reasonable excuse, contravenes subsection (1), (2) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.(6) In this section, “appointed day” means the date of commencement of section 10(1) of the Moneylenders (Amendment) Act 2018.”.

(2)

Section 11B of the Moneylenders Act, as inserted by subsection (1), is amended by deleting the words “or partner” wherever they appear in the following provisions:Subsections (1)(b), (9)(a)(ii) and (b)(ii), (10)(b) and (11)(b).

(3)

Section 11D of the Moneylenders Act, as inserted by subsection (1), is amended —

(a)

by deleting paragraph (a) of subsection (3) and substituting the following paragraph:“(a)the making of an application to the High Court under the Bankruptcy Act (Cap. 20) for a bankruptcy order against any director or substantial shareholder of the licensee;”;

(b)

by inserting the word “or” at the end of subsection (3)(b)(i);

(c)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(b) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee;”;

(d)

by inserting the word “or” at the end of subsection (3)(c)(i);

(e)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(c) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee,”;

(f)

by deleting the words “, partner, substantial shareholder or manager” in subsection (3)(c) and substituting the words “or substantial holder”;

(g)

by inserting the word “or” at the end of subsection (3)(d)(i);

(h)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(d) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee;”;

(i)

by inserting the word “or” at the end of subsection (3)(e)(i);

(j)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(e) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee;”;

(k)

by inserting the word “or” at the end of subsection (3)(f)(i);

(l)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(f) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee;”;

(m)

by inserting the word “or” at the end of subsection (3)(g)(i);

(n)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(g) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee;”;

(o)

by inserting the word “or” at the end of subsection (3)(h)(i); and

(p)

by deleting sub‑paragraphs (ii) and (iii) of subsection (3)(h) and substituting the following sub‑paragraph:“(ii)any substantial shareholder of the licensee.”.

Read in full context — Moneylenders (Amendment) Bill →