Singapore legislation

Regulation 3

of Banking (Merchant Banks) Regulations 2021

Regulation 3

Prescribed person under section 55U(1)(a)(i) of Act

Subregulation 1

For the purpose of section 55U(1)(a)(i) of the Act, each of the following is a prescribed person from whom a merchant bank in Singapore may accept any deposit in Singapore dollars or otherwise borrow any money in Singapore dollars:

(a)

a bank;

(b)

a finance company licensed under the Finance Companies Act (Cap. 108);

(c)

a shareholder of the merchant bank in Singapore;

(d)

a company controlled by any shareholder of the merchant bank in Singapore.

Subregulation 2

For the purposes of paragraph (1)(d), a shareholder has control of a company if the shareholder —

(a)

holds the right (directly or indirectly) to appoint or remove the directors or equivalent persons of the company, where such directors or equivalent persons hold a majority of the voting rights at any meeting of the directors or equivalent persons of the company on all or substantially all matters;

(b)

holds (directly or indirectly) more than 25% of the rights to vote on any matter that is to be decided upon by a vote of the members or equivalent persons of the company; or

(c)

has the right to exercise, or actually exercises, significant influence or control over the company.