Monetary Authority of Singapore Act 1970

• Jurisdiction: Singapore
• Coming into Force: 30 December 1999
• Act Number: (Original Enactment: Act 42 of 1970)
• Record Number: Cap. 186
• Published date: 30 December 1999

Monetary Authority of Singapore Act

(CHAPTER 186)

(Original Enactment: Act 42 of 1970)

REVISED EDITION 1999

(30th December 1999)

An Act to establish a corporation to be known as the Monetary Authority of Singapore, to provide for the exercise of control over and the resolution of financial institutions and their related entities by the Monetary Authority of Singapore and other authorities, and to establish a framework for the issue of securities by the Monetary Authority of Singapore and the regulation of primary dealers of such securities, and for matters incidental thereto and connected therewith. [13/2007 wef 30/06/2007] [Act 9 of 2013 wef 18/04/2013]

[26th December 1970: Parts I, II and VI ;

1st January 1971: Parts III and IV ;

8th October 1999: Part V ]

PART I PRELIMINARY Short title 1. This Act may be cited as the Monetary Authority of Singapore Act. Interpretation 2. In this Act, unless the context otherwise requires — “Authority” means the Monetary Authority of Singapore established under section 3; “bank” means a bank licensed under the Banking Act (Cap. 19); “board” means the board of directors of the Authority; “corporation” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); [Act 9 of 2013 wef 18/04/2013] “director” means a director appointed under section 8(1) and the chairman and the deputy chairman of the board; [Deleted by Act 4 of 2017 wef 08/10/2018] “managing director” means a director appointed under section 9(1); [24/2003 wef 01/01/2004] “money market operations” means any transaction undertaken by the Authority as the central bank to manage liquidity in the banking system; [24/2003 wef 01/01/2004] “officer”, in relation to the Authority, includes any person employed by the Authority in an executive capacity; [24/2003 wef 01/01/2004] [26/84] [Act 9 of 2013 wef 18/04/2013] “primary dealer” means a person appointed under section 145 as a primary dealer for securities issued by the Authority. [Act 31 of 2017 wef 04/06/2018] [Act 9 of 2013 wef 18/04/2013]

PART II ESTABLISHMENT, CAPITAL AND ADMINISTRATION OF AUTHORITY Establishment of Authority 3.—(1) There shall be established an Authority to be called the Monetary Authority of Singapore which shall be a body corporate and shall have perpetual succession and may sue and be sued in its own name. (2) The Authority shall have a common seal and the seal may, from time to time, be broken, changed, altered and made anew as to the Authority seems fit, and, until a seal is provided under this section, a stamp bearing the inscription “The Monetary Authority of Singapore” may be used as the common seal. (3) All deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the common seal of the Authority, by the authority of the Authority, in the presence of the managing director and of some other person duly authorised by the Authority to act in that behalf and shall be signed by the managing director and by such duly authorised person. (3A) The managing director may, subject to such terms and conditions as the managing director thinks fit, appoint an officer of the Authority who holds the appointment of deputy managing director or its equivalent, to exercise the power and perform the duty of the managing director under subsection (3), and that officer must exercise that power and perform that duty under the direction and control of the managing director. [Act 31 of 2017 wef 15/08/2017] (3B) To avoid doubt, the managing director — (a) remains responsible for the exercise of the power, and the performance of the duty, by the deputy managing director (or equivalent) delegated under subsection (3A); and (b) may continue to exercise the power and perform the duty, despite the delegation under subsection (3A). [Act 31 of 2017 wef 15/08/2017] (4) Such signing by the managing director or officer appointed by the managing director under subsection (3A) shall be sufficient evidence that the common seal of the Authority has been duly and properly affixed and that the seal is the lawful common seal of the Authority. [Act 31 of 2017 wef 15/08/2017] (5) The Authority may, by resolution or otherwise, appoint an officer of the Authority or any other agent either generally or in a particular case to execute or sign on behalf of the Authority any agreement or other instrument not under seal in relation to any matter coming within the powers of the Authority. Principal objects and functions of Authority 4.—(1) The principal objects of the Authority shall be — (a) to maintain price stability conducive to sustainable growth of the economy; (b) to foster a sound and reputable financial centre and to promote financial stability; [Act 9 of 2013 wef 18/04/2013] (c) to ensure prudent and effective management of the official foreign reserves of Singapore; and (d) to grow Singapore as an internationally competitive financial centre. [13/2007 wef 30/06/2007] (1A) The Authority, when giving effect to its objects under subsection (1), is to act on the basis that the object in paragraph (b) prevails over the object in paragraph (d) of that subsection. [Act 31 of 2017 wef 15/08/2017] (2) The functions of the Authority shall be — (a) to act as the central bank of Singapore, conduct monetary policy, issue currency, oversee payment systems and serve as banker to and financial agent of the Government; [Act 9 of 2013 wef 18/04/2013] (b) to conduct integrated supervision of the financial services sector and financial stability surveillance; [Act 9 of 2013 wef 18/04/2013] (c) to manage the official foreign reserves of Singapore; and (d) to develop Singapore as an international financial centre. [13/2007 wef 30/06/2007] Paid-up capital 5.—(1) The paid-up capital of the Authority shall be $100 million. (2) The paid-up capital may be revised from time to time by such amount as the Government and the board may agree. [Act 31 of 2017 wef 15/08/2017] (3) For the purpose of subsection (2), the board must consider the Authority’s capital and reserves necessary for the Authority to carry out its principal objects and functions. [Act 31 of 2017 wef 15/08/2017] (4) Any reduction of or increase in the paid-up capital may be effected by way of transfers to or from the General Reserve Fund, or by such other means as the Government and the board may from time to time agree. [Act 31 of 2017 wef 15/08/2017] General Reserve Fund 6.—(1) There shall be a General Reserve Fund of the Authority. (2) At the end of each financial year, the net profit of the Authority for that year shall be determined after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff and pension funds and such other contingencies or purposes as the Authority may determine. [24/2003 wef 01/01/2004] (3) Subject to subsection (4), such part of the net profit for each financial year as the Authority may determine shall be paid to the Government and the remainder of the net profit, if any, shall be credited to the General Reserve Fund. [24/2003 wef 01/01/2004] (3A) Notwithstanding subsection (3), the Authority may pay to the Government such amount from the General Reserve Fund over and above the net profit, if any, as the Authority may determine. [24/2003 wef 01/01/2004] (4) Where the General Reserve Fund is in deficit at the end of a financial year — (a) if the Authority’s net profit for that financial year is larger than the deficit, an amount of not less than the net profit necessary to offset the deficit, as determined by the Authority, must be credited to the General Reserve Fund; and (b) if the Authority’s net profit for that financial year is smaller than or equal to the deficit, the whole of the net profit must be credited to the General Reserve Fund. [Act 31 of 2017 wef 15/08/2017] Transfer of Currency Fund to Authority’s accounts 6A.—(1) For the purposes of section 21 of the Currency Act (Cap. 69), the Authority must, starting from the date of commencement of section 6 of the Monetary Authority of Singapore (Amendment) Act 2017, commence transferring all of the assets (including external assets) and liabilities of the Currency Fund established under section 21(1) of the Currency Act as in force immediately before that date, to such of the accounts holding the Authority’s assets and liabilities as the Authority may determine. (2) Upon the completion of the transfer mentioned in subsection (1), the Authority must publish a notification in the Gazette of the completion and the date of the completion. [Act 31 of 2017 wef 15/08/2017] Board of directors 7.—(1) There shall be a board of directors of the Authority which shall be responsible for the policy and general administration of the affairs and business of the Authority. (2) The board shall, from time to time, inform the Government of the regulatory, supervisory and monetary policies of the Authority. [13/2007 wef 30/06/2007] (3) The board shall consist of — (a) a chairman who shall be appointed by the President on the recommendation of the Cabinet; and (b) not less than 4 and not more than 13 other directors, one of whom shall be the deputy chairman, appointed in accordance with sections 8 and 9. [26/84; 11/91; 28/98] [Act 9 of 2013 wef 18/04/2013] (4) The board shall furnish the Minister with such information as the Minister may require in respect of the duties and functions of the Authority. [13/2007 wef 30/06/2007] Appointment of directors 8.—(1) The directors referred to in section 7(3)(b) shall be appointed by the President who shall, on the recommendation of the Minister, also appoint the deputy chairman. [26/84] (2) The directors so appointed — (a) shall not act as delegates on the board from any commercial, financial, agricultural, industrial or other interests with which they may be connected; (b) shall hold office for a term not exceeding 3 years and shall be eligible for reappointment; and (c) may be paid by the Authority out of the funds of the Authority such remuneration and allowances as may be determined by the President. (3) Subsection (2)(b) and ...