Singapore legislation
Regulation 12
Regulation 12
Maintenance of net asset value and qualifying assets
Subregulation 1
A licensed trust company incorporated in Singapore shall at all times maintain a net asset value of not less than —
where it does not have a financial year immediately preceding the current financial year, three-quarters of the minimum paid-up capital required under regulation 11; or
in any other case —
one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year; or
three-quarters of the minimum paid-up capital required under regulation 11,whichever is the higher amount.
Subregulation 2
A licensed trust company incorporated outside Singapore shall at all times maintain qualifying assets in the branch in Singapore, of not less than —
where it does not have a financial year immediately preceding the current financial year, the minimum qualifying assets required under regulation 11; or
in any other case —
one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year; or
the minimum qualifying assets required under regulation 11,whichever is the higher amount.
Subregulation 3
For the purposes of paragraphs (1)(b)(i) and (2)(b)(i), the relevant annual expenditure of a licensed trust company for the financial year immediately preceding the current financial year means the total expenditure of the trust company for that year less the following:
staff bonuses (except to the extent that they are guaranteed); and
employees’ and directors’ shares in profits (except to the extent that they are guaranteed).
Subregulation 4
Any licensed trust company which contravenes paragraph (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.