Singapore legislation
Regulation 22
Regulation 22
Affiliated entity over which the merchant bank has no effective control
Subregulation 1
Where an entity falls within the definition of “affiliated entity” under regulation 20(1)(a), (b), (c) or (e), but not regulation 20(1)(d), and the Authority is satisfied that —
the affiliated entity is not under the effective control of the merchant bank; and
the merchant bank is not exposed to any material risk because of —
the affiliated entity’s beneficial interest in the share capital, accumulated funds or contributed capital of any other entity;
the affiliated entity’s control of voting power in any other entity; or
the affiliated entity’s interest in any other entity,the Authority may issue a declaration by written notice to the merchant bank that regulation 21(1) does not apply to any beneficial interest in the share capital, accumulated funds or contributed capital of any entity, any control of voting power in any entity, or any interest in any entity, held by the affiliated entity.
Subregulation 2
Where a declaration is made under paragraph (1), regulation 21(1) does not apply starting on the date specified in the declaration, until such time as the declaration is revoked.
Subregulation 3
The Authority may, at any time on or after making the declaration under paragraph (1), impose any condition, and if any condition is not complied with at any time, the Authority may revoke the declaration by written notice to the merchant bank.
Subregulation 4
The Authority may add to, vary or revoke any condition imposed under paragraph (3).
Subregulation 5
Without affecting paragraph (3), the Authority may, by written notice to a merchant bank, revoke a declaration made under paragraph (1) if the Authority is satisfied that —
the affiliated entity has come under the effective control of the merchant bank; or
the merchant bank has become exposed to any material risk because of —
the affiliated entity’s beneficial interest in the share capital, accumulated funds or contributed capital of any other entity;
that affiliated entity’s control of voting power in any other entity; or
that affiliated entity’s interest in any other entity,and in such event, regulation 21(1) applies to that affiliated entity accordingly starting on the date specified in the notice of revocation.
Subregulation 6
Without affecting paragraph (5), a declaration under paragraph (1) is automatically revoked if the affiliated entity falls within the definition of “affiliated entity” under regulation 20(1)(d), whether or not that affiliated entity continues to fall within the definition of “affiliated entity” under regulation 20(1)(a), (b), (c) or (e).