Singapore legislation
Section 464
Section 464
Regulatory directions to CMOs and their officers
(1)
Subject to subsection (3), IPOS may, by written notice, give directions to a CMO or any officer of a CMO for any of the following purposes:
to obtain information about the CMO and its business as a CMO, for the purpose of regulating CMOs in general;
to secure the CMO’s compliance with its class licence conditions;
to ensure the good governance of the CMO;
to investigate or remedy any contravention by the CMO of its class licence conditions;
where the CMO is under a cessation order, to secure the orderly cessation of the CMO’s business as a CMO.
(2)
The power of IPOS under subsection (1) includes directing a CMO or any officer of a CMO to —
provide security for the CMO’s compliance with its class licence conditions;
conduct an audit of the CMO’s business at the expense of the CMO or officer;
if there is reason to believe, based on credible information, that the CMO has contravened one or more of its class licence conditions —
submit to an audit of the CMO’s business conducted by or at the direction of IPOS;
pay the cost incurred by IPOS for the audit; and
pay any other cost incurred by IPOS in relation to the audit, but only if the findings of the audit lead to —
a financial penalty being imposed on the CMO or an officer of the CMO;
a regulatory direction to the CMO or an officer of the CMO to turn over the conduct of the CMO’s business to a person appointed by IPOS; or
a cessation order being made against the CMO;
secure the removal or appointment of a person as an officer of the CMO;
turn over the conduct of the CMO’s business to a person appointed by IPOS;
stop taking on the management of new works or performances; and
in the case of an officer of the CMO — resign from or otherwise cease to act in that capacity.
(3)
Regulations may require IPOS to give a person an opportunity to make representations in accordance with the prescribed procedure before giving a regulatory direction to the person.
(4)
IPOS may, by written notice, revoke a regulatory direction at any time.
(5)
It is an offence for a person to —
fail to comply with a regulatory direction; or
knowingly do anything that prevents or impedes compliance with a regulatory direction.
(6)
A person who commits an offence under subsection (5) shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both.
(7)
For the purposes of subsection (2)(c) —
IPOS may certify in writing the cost incurred by IPOS for or in relation to an audit; and
unless the contrary is proved, the certified cost is presumed to be the cost for or in relation to that audit and is recoverable as a debt due from the CMO or officer to IPOS.
(8)
A regulatory direction has effect despite —
any written law; and
in the case of a CMO that is not an individual — anything in the memorandum or articles of association, or other constitution, of the CMO.