Banking (Merchant Banks) Regulations 2021 · As enacted · Part 2 · Restrictions on Acceptance of Deposit or Borrowing Money in Singapore Dollars
3. Prescribed person under section 55U(1)(a)(i) of Act
Feedback & supportFor 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 bank;
a finance company licensed under the Finance Companies Act (Cap. 108);
a shareholder of the merchant bank in Singapore;
a company controlled by any shareholder of the merchant bank in Singapore.
For the purposes of paragraph (1)(d), a shareholder has control of a company if the shareholder —
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;
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
has the right to exercise, or actually exercises, significant influence or control over the company.
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 bank;
a finance company licensed under the Finance Companies Act (Cap. 108);
a shareholder of the merchant bank in Singapore;
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 —
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;
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
has the right to exercise, or actually exercises, significant influence or control over the company.