Singapore legislation
Regulation 4
Regulation 4
Where base capital of holder of licence falls below base capital requirement
Subregulation 1
The holder of a licence shall not cause or permit —
where it is incorporated in Singapore, its base capital; or
where it is a foreign company, its net head office funds,to fall below the base capital requirement applicable to the holder under regulation 3 or paragraph (1A), as the case may be.
Subregulation 1A
If a holder of a licence, at any time during the period of its licence, intends to commence or cease business in any regulated activity, or change the scope of its business in a regulated activity, such that a different base capital requirement shall apply to it, it shall obtain the prior written approval of the Authority to comply with the new base capital requirement applicable to it.
Subregulation 2
If the holder of a licence fails to comply with paragraph (1) or becomes aware that it will fail to comply with that paragraph, the holder shall immediately notify —
the Authority; and
the approved exchange or approved clearing house of which the holder is a member (if applicable).
Subregulation 3
If the Authority is notified by the holder of a licence under paragraph (2) or becomes aware that the holder has failed to comply with paragraph (1), the Authority may —
direct the holder to immediately do one or more of the following:
cease any increase in positions, product financing, funds accepted for management and assets accepted for custody for any account carried by the holder;
transfer all or part of any customer’s positions, margins, collateral, assets and accounts to one or more other holders of licences;
operate its business in such manner and on such conditions as the Authority may impose;
cease carrying on business in any or all of the regulated activities permitted under its licence until such time the holder complies with paragraph (1), except that the holder may continue trading for the purposes of liquidation only or unless otherwise directed by the Authority; or
revoke the licence of the holder under section 95(2) of the Act.
Subregulation 4
The Authority may revoke the licence of the holder under section 95(2) of the Act if the holder fails to comply with a direction issued to it under paragraph (3)(a).