Singapore legislation
Regulation 30
of Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024
Regulation 30
Restrictions on eligible instruments
Subregulation 1
For the purposes of section 90 of the Act, a Division 6 FI must ensure that the contract —
that governs an eligible instrument issued by it; and
that is governed by any law other than the law of Singapore,must contain a provision to the effect that the parties to the contract agree that the eligible instrument may be the subject of a bail‑in certificate.
Subregulation 2
In particular, the contract must contain provisions to the effect that —
the eligible instrument may be subject to cancellation, modification, conversion, change in form or have the effect as if a right of modification, conversion or change of its form had been exercised by the Authority in the exercise of the Authority’s powers under Division 6 of Part 8 of the Act; and
the parties agree to be bound by a bail‑in certificate.
Subregulation 3
Paragraphs (1) and (2) do not apply to an eligible instrument that the Authority specifies in a written notice to the Division 6 FI.
Subregulation 4
To avoid doubt, where a contract mentioned in paragraph (1) contains any provision to the effect that upon the occurrence of a specified event, the eligible instrument may be cancelled, modified, converted, changed in form or may have the effect as if a right of modification, conversion or change of its form had been exercised, that provision is unaffected by Division 6 of Part 8 of the Act or the exercise by the Authority of any power under it.
Subregulation 5
For a contract mentioned in paragraph (1), the Division 6 FI must, before the issuance of the eligible instrument, provide to the Authority a legal opinion by a person qualified to practise law in the jurisdiction of the governing law of the contract, as to the enforceability in that jurisdiction of the provision required under paragraph (1) to be contained in the contract.
Subregulation 6
However, the Authority may, on an application made by a Division 6 FI before the issuance of an eligible instrument, and subject to any conditions and restrictions as the Authority may impose, extend the time for the provision of the legal opinion mentioned in paragraph (5) by up to 10 business days after the date of issuance of the eligible instrument, and paragraph (5) applies accordingly.
Subregulation 7
A single legal opinion may be provided for one or more contracts or classes of contracts.
Subregulation 8
A Division 6 FI that fails to comply with paragraph (1) or (5) (read with paragraph (6)) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000.
Subregulation 9
In this regulation, “business day”, in relation to a contract mentioned in paragraph (1), means any calendar day other than any of the following days in the jurisdiction of the governing law of that contract:
a Saturday;
a Sunday; (c)a public holiday;
a bank holiday.