Regulation 15

the business is related or complementary to a core financial business of the merchant bank;

the business is not —

any other business prescribed for the purposes of section 55V(1)(d) of the Act, including any prescribed business under regulation 16(1); or

any business approved under section 55V(1)(e) of the Act;

the business is not any of the following types of business:

property development;

provision of hotel and resort facilities;

property management;

owning, operating or investing in facilities for the extraction, transportation, storage or distribution of commodities;

owning, operating or investing in facilities for processing, refining or otherwise altering commodities.

the merchant bank puts in place risk management and governance policies and procedures that are commensurate with the risks posed by the business;

the policies and procedures mentioned in sub‑paragraph (a) have been approved by —

in the case of a merchant bank incorporated in Singapore — the board of directors of the merchant bank;

in the case of the branches and offices located in Singapore of a merchant bank incorporated outside Singapore, the head office of which has never carried on a materially similar business before — the board of directors of the merchant bank; or

in the case of the branches and offices located in Singapore of a merchant bank incorporated outside Singapore, the head office of which has carried on or is carrying on a materially similar business — by an authorised person of the merchant bank;

the merchant bank notifies the Authority, in accordance with paragraph (3), of the following matters:

a description of the business;

any regulation or licensing requirement that the business is or will be subject to, whether in Singapore or elsewhere;

the nature of the merchant bank’s investment in the business and the amount of such investment;

the date on which the merchant bank intends to start carrying on the business;

any partnership, joint venture or other arrangement into which the merchant bank has entered to carry on the business;

the merchant bank notifies the Authority of any change to the matters in relation to which information had been provided in the notification mentioned in sub‑paragraph (c), before making the change or as soon as the merchant bank becomes aware of the change; and

the merchant bank obtains prior approval from the Authority for the issuance of any guarantee, indemnity, letter of comfort or any other letter that imposes similar obligations on the merchant bank as a guarantee or indemnity, or similar expectations on the bank as a letter of comfort, in respect of the business.

any public announcement that the merchant bank intends to carry on, or enter into any partnership, joint venture or other arrangement with any person to carry on, the business;

the entry of the merchant bank into any partnership, joint venture or arrangement with any person to carry on the business;

the date on which the merchant bank starts carrying on the business, or the date on which any partnership, joint venture or other arrangement entered into by the merchant bank to carry on the business comes into effect.

in the case of a merchant bank incorporated in Singapore —

30% of its capital funds; and

30% of the capital funds of its merchant bank group; or

in the case of the branches and offices located in Singapore of a merchant bank incorporated outside Singapore — 4% of the assets that are reflected as assets in the balance‑sheet of the branches and offices located in Singapore (less net inter‑bank lending).

submit a report to the Authority within 30 days after the end of every quarter or any other time as may be approved in writing by the Authority, containing the information specified in the First Schedule; and

provide any other information that the Authority may require in relation to any business prescribed in paragraph (1) that is carried on by the merchant bank.