Singapore legislation
Clause 10
Clause 10
Amendment of section 53
Section 53 of the principal Act is amended by deleting subsection (1) and substituting the following subsection:“(1) A dealer or an investment adviser shall not grant, directly or indirectly, any unsecured advance, unsecured loan or unsecured credit facility to any of its directors or employees or to a person who, to its knowledge, is associated with any of its directors or employees if —
the unsecured advance, unsecured loan or unsecured credit facility is given for the purpose of enabling or assisting the person to whom the unsecured advance, unsecured loan or unsecured credit facility is given to purchase or subscribe for any securities; or
the person giving the unsecured advance, unsecured loan or unsecured credit facility knows or has reason to believe that the unsecured advance, unsecured loan or unsecured credit facility will be used for the purpose of purchasing or subscribing for any securities.”.