Regulation 20

any subsidiary of the merchant bank;

any entity in which the merchant bank and its subsidiaries hold in the aggregate a beneficial interest in at least 20% of the share capital, accumulated funds or contributed capital;

any entity in which the merchant bank and its subsidiaries control in the aggregate at least 20% of the voting power;

any other entity where the management of the entity is accustomed or under an obligation, whether formal or informal, to act in accordance with the merchant bank’s directions, instructions or wishes, or where the merchant bank is in a position to determine the policy of the entity; or

any subsidiary of any entity mentioned in sub‑paragraph (b), (c) or (d).

acquired or controlled by a merchant bank or any entity mentioned in paragraph (1) under an arrangement with a person that has a trading account with the merchant bank or entity, and transferred to the trading account of that person within 2 market days after the date of acquisition; or

acquired or held, or controlled, by the merchant bank or the entity mentioned in sub‑paragraph (a) in the course of satisfaction of debts due to it and disposed of at the earliest suitable opportunity,is excluded for the purpose of determining whether the entity is an affiliated entity of the merchant bank.

for the benefit of any person other than the merchant bank or its subsidiary, or any other affiliated entity of the merchant bank (called in this paragraph the beneficiary) under an obligation imposed under any written law, rule of law, contract or order of court; and

used or exercised by the merchant bank or its subsidiary primarily for the benefit of the beneficiary,is excluded for the purpose of determining whether the entity is an affiliated entity of the merchant bank.

the voting power in the entity is controlled by the merchant bank, or a subsidiary of the merchant bank that is a licensed insurer under the Insurance Act (Cap. 142), through —

any insurance fund established and maintained under the Insurance Act for its general business;

any insurance fund established and maintained under the Insurance Act for its non‑participating policies;

any insurance fund established and maintained under the Insurance Act for its participating policies, and that relates to assets held other than for the purpose of meeting the liabilities in respect of the policies of the insurance fund; or

any insurance fund established and maintained under the Insurance Act for its investment‑linked policies, and that relates to assets held other than for the purpose of meeting those liabilities in respect of the policies of the insurance fund, the values of which are dependent on the value of the underlying assets; or

the Authority —

is of the opinion, having regard to the specific circumstances of the case including whether the merchant bank or its subsidiary has investment and voting policies that comply with guidelines issued by the Authority, that the control of voting power in the entity is in fact not being used or exercised primarily for the benefit of the beneficiary; and

issues a declaration mentioned in paragraph (5).