Regulation 3

subject to sub-paragraph (b), all the issued shares of the company are beneficially owned by one or more individuals;

where all the issued shares are beneficially owned by more than one individual, all the individuals are connected persons by reference to any one of them;

a financial institution in Singapore is engaged to —

administer the company;

manage the financial assets of the company; or

provide advice on the management of the financial assets of the company;

the company’s transactions with related parties are carried out on an arm’s length basis; and

unless made under an arm’s length transaction —

no assets are transferred directly or indirectly to the company by any person who carried on a business in Singapore and whose income in relation to those assets was not or would not be (as the case may be), exempted from tax; and

no shares in the company are transferred where such transfer would result in sub-paragraphs (a) and (b) being satisfied if, at any time prior to the transfer, the company was carrying on a business in Singapore which generated income that was not or would not be (as the case may be) exempted from tax.

an individual beneficially owns (including by virtue of one or more applications of this paragraph) equity interests of a nominee company or another eligible family-owned investment holding company (referred to in this paragraph as a first level entity); and

the first level entity beneficially owns equity interests of another nominee company or another eligible family-owned investment holding company (referred to in this paragraph as a second level entity),then the individual is taken to beneficially own equity interests of the second level entity.