SINGAPORE LEGISLATION

• Published date: 01 December 2004
• Citation: (2004) 16 SAcLJ 279
• Author: Emily TEO and Joyce CHNG
• Date: 01 December 2004

Financial Advisers (Amendment) Act 2003

Act No 15 of 2003

Long Title: An Act to amend the Financial Advisers Act (Chapter 110 of the 2002 Revised Edition).

Passed by Parliament on: 2 September 2003

Assented to by President on: 15 September 2003

Publication date: 6 October 2003

Commencement date: 22 December 2003

Summary: This Act seeks to amend the Financial Advisers Act (Cap 110, 2002 Rev Ed) as a result of minor policy changes, to fine-tune the Act to improve its overall clarity, consistency and operational efficiency and to ensure the consistency of certain requirements in the Act with those in the Securities and Futures Act (Cap 289, 2002 Rev Ed). The amendments, amongst other provisions, are to the following provisions:

1. (a) Section 8: To provide that an application for the renewal of a representative’s licence is to be supported by a person who is a licensed financial adviser, and to allow a person who submits an application for the renewal of his licence during the late renewal period to continue providing the types of financial advisory service authorised by his licence until the date on which the licence is renewed or the application for its renewal is refused, as the case may be.

2. (b) Section 16: To extend the right of variation of licence to cases where licensees propose to provide financial advisory services in respect of additional investment products; and to empower the Monetary Authority of Singapore (“the Authority”) to require an applicant for the variation of a licence to furnish the information or documents which the Authority considers necessary;

1. (c) Section 36: To remove the requirement for licensees to sign circulars and other written communication sent by them and to change the retention period of the circulars and other written communication from seven years to six years;

2. (d) Section 56: To provide that prior approval of the Authority is required for the appointment of a chief executive officer, a director who resides in Singapore or a director (whether or not he resides in Singapore) who is directly responsible for any part of the business, of a licensed financial adviser, and to limit the grounds on which the Authority may refuse an application by that licensed financial adviser without giving the licensed financial adviser an opportunity to be heard;

3. (e) Section 69: To provide that nothing in Part VI, relating to the supervision and investigation powers of the Authority, compels the disclosure by an advocate and solicitor of a privileged communication, or a document or other material containing a privileged communication, made by or to him in that capacity or authorises the taking of any such document or other material which is in his possession;

4. (f) Section 94: To empower the Minister to make regulations on matters relating to appeals under the Act, including the form and manner in which an appeal is to be made, the fees to be paid, and the remuneration of the members of the Appeal Advisory Panel and Appeal Advisory Committees;

5. (g) New s 102A: To require the translation of documents, which are to be submitted to the Authority, to be made available for inspection or to be maintained or kept under the Act, into the English language; and

   (h) New Third Schedule: To specify the provisions of the Act containing exemptions that an officer appointed by the Authority under s 65(1A) may grant or revoke on a case-by-case basis.

Securities and Futures (Amendment) Act 2003

Act No 16 of 2003

Long Title: An Act to amend the Securities and Futures Act (Chapter 289 of the 2002 Revised Edition).

Passed by Parliament on: 2 September 2003

Assented to by President on: 15 September 2003

Publication date: 6 October 2003

Commencement date: All sections (except s 56(e), (g) and (h)) — 22 December 2003

Summary: This Act seeks to amend the Securities and Futures Act (Cap 289, 2002 Rev Ed) to implement the recommendations of the Company Legislation and Regulatory Framework Committee (CLRFC), which was appointed by the Government in December 1999 to undertake a comprehensive review of the company law and regulatory framework in Singapore and recommend a modern company law and regulatory framework for Singapore which accords with global standards and which will promote a competitive economy; to introduce a number of policy changes in response to market needs; and to fine-tune the Act to improve its overall clarity, consistency and operational efficiency. The amendments, amongst other provisions, are to the following provisions:

1. (a) Sections 15 and 34: To provide that any issue of shares and any payment made by a securities exchange or futures exchange or an exchange company (as the case may be) in respect of any shares which the Monetary Authority of Singapore (“the Authority”) has directed to be transferred or disposed of, will be null and void, to require the person to whom any shares are issued or payment made in contravention of the section to return the shares or payment and to require the securities exchange or futures exchange to return any payment received by it for any shares issued in contravention of the section, and to enhance the penalties for contravention of the section;

2. (b) Sections 17 and 59: To give the Authority the discretion to allow, on application by a securities exchange or futures exchange or a clearing house (as the case may be), an amendment to the business or listing rules of the securities exchange or futures exchange or the clearing house (as the case may be) to take effect before the expiry of the 21 days’ notice period that must be given to the Authority;

3. (c) Section 84: To differentiate between applications for the grant of, and applications for the renewal of, representative’s licences in relation to the persons required to support the applications and the circumstances under which the applications are deemed to be withdrawn;

4. (d) Section 90: To empower the Authority to require an applicant for the variation of a licence to supply the information or documents which the Authority considers necessary, and to require an application for the variation of a representative’s licence by adding a regulated activity to be supported by a person who is the holder of a capital markets services licence for that regulated activity or the holder of a capital markets service licence which has applied to add to its licence that regulated activity;

5. (e) Section 96: To provide that prior approval of the Authority is required for the appointment of a chief executive officer, a

1. director who resides in Singapore or a director (whether or not he resides in Singapore) who is directly responsible for any part of the business, of the holder of a capital markets service licence, and to limit the grounds on which the Authority may refuse an application by that holder of a capital markets service licence without giving the holder an opportunity to be heard;

2. (f) Section 153: To provide that nothing in Division 3 of Part IX, relating to the supervision and investigation powers of the Authority, compels the disclosure by an advocate and solicitor of a privileged communication, or a document or other material containing a privileged communication, made by or to him in that capacity or authorises the taking of any such document or other material which is in his possession;

3. (g) Section 273: To extend the scope of the exemption under the section to include —

   1. (i) offers of securities made in connection with a take-over offer or a proposed compromise or arrangement where the target corporation is not incorporated in Singapore and is one whose securities are not listed for quotation on a securities exchange; provided that the offer complies with the requirements of the jurisdiction in which the corporation is incorporated;

   2. (ii) offers of units of securities (including covered warrants) where the units will be listed for quotation on a securities exchange and the underlying securities are already listed on a securities exchange or a recognised securities exchange; and

   3. (iii) offers of securities by a corporation pursuant to a share investment offer or scheme (including a share option offer or scheme) to a bona fide employee, former employee, director, former director, consultant or adviser of the corporation or its related corporation, or a spouse, widow, widower or child below the age of 18 of such employee, former employee, director or former director;

4. (h) Section 313: To empower the Minister to make regulations on matters relating to appeals under the Act, including the form and manner in which an appeal is to be made, the fees to be paid, and the remuneration of the members of the Appeal Advisory Panel and Appeal Advisory Committees;

5. (i) Section 339: To clarify that the extra-territorial effect of the section to specific Parts of the Act also applies for the purposes of civil penalty actions and civil liability actions; and

6. (j) New Fourth Schedule: To specify provisions of the Act containing exemptions that an officer appointed by the

1. Authority under s 320(1A) may grant or revoke on a case-by-case basis.

Evidence (Amendment) Act 2003

Act No 17 of 2003

Long Title: An Act to amend the Evidence Act (Chapter 97 of the 1997 Revised Edition).

Passed by Parliament on: 2 September 2003

Assented to by President on: 15 September 2003

Publication date: 22 September 2003

Commencement date: 26 September2003

Summary: This Act seeks to amend the Evidence Act (Cap 97, 1997 Rev Ed) by extending the privilege against disclosure of official communications to members, officers and employees of, and persons seconded to, organisations which are specified in the Schedule to the Official Secrets Act (Cap 213, 1985 Rev Ed).

Building Control (Amendment) Act 2003

Act No 18 of 2003

Long Title: An Act to amend the Building Control Act (Chapter 29 of the 1999 Revised Edition) and to make related...