Singapore legislation

Regulation 22

of Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations

Regulation 22

Qualifying subordinated loan

Amended byS 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013S 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013S 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013S 192/2013 wef 03/04/2013S 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013

Subregulation 1

Amended byS 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013

Where the holder of a licence referred to in regulation 5 draws down a qualifying subordinated loan, the holder shall notify, no later than the date of draw down of the qualifying subordinated loan, the Authority, and the approved exchange or approved clearing house of which the holder is a member (if applicable).

Subregulation 2

Amended byS 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013S 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013S 192/2013 wef 03/04/2013S 677/2006 wef 20/12/2006S 463/2013 wef 01/08/2013

The holder of a licence referred to in regulation 5 —

(a)

shall not repay, whether in part or in full, any subordinated loan principal before the maturity date set out in the subordination loan agreement —

(i)

without the prior approval of the approved exchange or approved clearing house of which the holder is a member (if applicable); and

(ii)

without providing prior notification to the Authority; and

(b)

shall not repay, whether in part or in full, any subordinated loan principal that has matured —

(i)

unless the holder notifies the Authority, and the approved exchange or approved clearing house of which the holder is a member (if applicable), at least one business day before the date of repayment;

(ii)

if the sum of financial resources of the holder is less than 120% of the total risk requirement of the holder;

(iii)

in a case of a holder to which regulation 17 applies, if the aggregate indebtedness of the holder exceeds 600% of the aggregate resources of the holder;

(iv)

if such a repayment will cause an event in sub-paragraph (ii) or (iii) to occur; or

(v)

if the Authority, or the approved exchange or approved clearing house of which the holder is a member (if applicable), has prohibited in writing such a repayment.

Read in full context — Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations →