Singapore legislation
Regulation 19
Regulation 19
Maintenance of reserve fund by holder of licence which is member of approved clearing house
Subregulation 1
The holder of a licence to deal in capital markets products which is a member of an approved clearing house shall maintain a reserve fund to which a sum of not less than 30% of the audited net profits of each year shall be transferred out of the net profits after due provision has been made for taxation, so long as —
where it is incorporated in Singapore, the base capital less unappropriated profits in the latest audited accounts of the holder; or
where it is a foreign company, the net head office funds of the holder,is less than $5 million.
Subregulation 2
Subject to regulation 23, if the Authority is satisfied that the reserve fund of the holder of a licence referred to in paragraph (1) is adequate for its business, the Authority may, by order in writing and on such conditions or restrictions as the Authority may impose, allow such amount in the reserve fund of that holder as the Authority may specify to be available for distribution as dividends.