Singapore legislation

Regulation 5

of Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005

Regulation 5

Approval criteria for trustees

Subregulation 1

For the purposes of section 289 of the Act, the Authority may approve a public company as an approved trustee if the Authority is satisfied that —

(a)

the public company has —

(i)

a paid-up capital of not less than $1 million;

(ii)

shareholders’ funds of not less than $1 million;

(iii)

a sound financial position; and

(iv)

a sufficient number of qualified personnel with experience in performing the duties of an approved trustee or other relevant experience, having regard to the nature and extent of the activities which the public company carries on or will carry on;

(b)

the public company is a fit and proper person;

(c)

each officer of the public company is a fit and proper person; and

(d)

the public company has, if so required by the Authority —

(i)

obtained professional indemnity insurance for such amount and on such terms as may be specified by the Authority by notice in writing; or

(ii)

provided the Authority with a performance bond, guarantee or any similar instrument (by whatever name called) from its holding company, if any, for such amount and on such terms as may be specified by the Authority by notice in writing.

Subregulation 2

In determining whether a public company is a fit and proper person for the purposes of paragraph (1)(b), the Authority may take into account any matter it deems fit, including matters relating to —

(a)

any person who is or will be employed by or associated with the public company;

(b)

any person whom the Authority considers to be exercising influence over the public company; and

(c)

any person whom the Authority considers to be exercising influence over a related corporation of the public company.

Subregulation 3

In paragraph (1) —

Definition

“officer”, in relation to a public company, means any director or secretary of the public company or any person employed in an executive capacity by the public company;

Definition

“personnel”, in relation to a public company, means —

(a)

any person, including any director, employed in an executive or managerial capacity by the public company; or

(b)

any other person who carries out executive or managerial duties for the public company.

Read in full context — Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 →