On 25/05/2013,
you requested for the version in force on 25/05/2013
incorporating all amendments published on or before 25/05/2013.
The closest version currently available is that of 14/02/2011.
PART II
CONTROL OF DEPOSIT-TAKING ACTIVITIES
3. Section 4A (1) of the Act shall not apply to —
(a)
any holder of a capital markets services licence under the Securities and Futures Act (Cap. 289) if, and only if, the acceptance of the deposit is solely incidental to the carrying on of the business for which the licence was granted;
(b)
any advocate and solicitor, foreign lawyer who is registered under the Legal Profession Act (Cap. 161), law corporation or Joint Law Venture which is approved under that Act, if, and only if, the acceptance of the deposit is solely incidental to the practice of his or its legal practice; and
(c)
any insurer registered under the Insurance Act (Cap. 142) if, and only if, the acceptance of the deposit is solely incidental to the carrying on of the business for which the insurer was registered.
3A.
—(1) Subject to paragraph (3), section 4A(1) of the Act shall not apply to any foreign entity in respect of any deposit accepted in Singapore, on behalf of the foreign entity by its agent bank, from any accredited investor in Singapore.
[S 170/2006 wef 24/03/2006]
(2) Subject to paragraph (3), section 4A(2) of the Act shall not apply to any agent bank of a foreign entity in respect of —
(a)
any offer or invitation to make any deposit, or to enter or offer to enter into any agreement to make any deposit, with the foreign entity; or
(b)
any advertisement containing such offer or invitation,
where such offer, invitation or advertisement is made or issued to accredited investors in Singapore by the agent bank on behalf of the foreign entity.
[S 170/2006 wef 24/03/2006]
(3) An agent bank which accepts or solicits deposits from an accredited investor on behalf of a foreign entity in the circumstances specified in paragraph (1) or (2) shall provide the following information to the accredited investor, in writing, when soliciting or accepting any deposit from the accredited investor:
(a)
the name of the foreign entity;
(b)
the jurisdiction where the deposit account would be opened;
(c)
the class of licence or registration, or the type of approval or other instrument of regulation, that the foreign entity holds or has obtained in the jurisdiction where the deposit account would be opened;
(d)
a statement to the effect that the class of licence or registration, or the type of approval or other instrument of regulation, permits the foreign entity to accept deposits in the jurisdiction where the deposit account would be opened; and
(e)
a statement to the effect that the deposit account would not be subject to the supervisory oversight of the Authority but that of the relevant supervisory authority in the jurisdiction where the deposit account would be opened and maintained.
[S 170/2006 wef 24/03/2006]
(4) In this regulation, unless the context otherwise requires —
“agent bank”, in relation to a foreign entity, means a bank in Singapore or merchant bank which is a branch or subsidiary of the foreign entity;
“foreign entity” means any corporation established or incorporated outside Singapore that is licensed, registered, approved or otherwise regulated to carry on banking business under the laws of the jurisdiction in which it is established or incorporated.
[S 170/2006 wef 24/03/2006]
4. For the purposes of section 4A(2) of the Act, in determining whether an offer, invitation or advertisement is made or issued to the public or any section of the public in Singapore, regard shall be had to the following considerations:
(a)
whether the offer, invitation or advertisement contains any information specifically relevant to Singapore;
(b)
whether the offer, invitation or advertisement is published in any newspaper, magazine, journal or other periodical publication, or in any broadcast media, which is principally for circulation or reception in Singapore;
(c)
whether the offer, invitation or advertisement contains a prominent notice that no deposit shall be accepted from persons in Singapore, and whether such notice is viewed with or before the advertisement;
(d)
whether reasonable steps are taken to guard against acceptance of deposits from persons in Singapore; or
(e)
whether the offer, invitation or advertisement, directly or indirectly, states that deposits in Singapore currency shall be accepted.
4A. For the purposes of section 4B(4)(b) of the Act, a sum of money paid by a person (“A”) to another person (“B”) or any other person as an agent of A is prescribed as a deposit made by A with B, if it is paid for the purpose of making funds of A available to B and under the following arrangement:
(a)
the payment is made to enable B or the agent to purchase an asset on behalf of A, being an asset that exists at the time of the purchase;
(b)
B purchases the asset from A at a price (the marked-up price) that is greater than the sum of money paid by A, and sells the asset;
(c)
A and B, respectively, do not derive any gain or suffer any loss from any movement in the market value of the asset other than the difference between the marked-up price and the sum of money paid by A (which represents the return to A for making funds available to B); and
(d)
no part of the marked-up price is required to be paid by B to A until after the date of sale of the asset by the B.
[S 238/2007 wef 11/06/2007]
5. Subject to regulation 6, for the purposes of section 4B(4) of the Act, “deposit” does not include —
(a)
a sum paid by or on behalf of any person in consideration for the issue to him by the recipient of —
(i)
bonds or NCDs denominated in any foreign currency;
(ii)
bonds or NCDs denominated in Singapore dollars with an original maturity period of not less than 12 months; or
(iii)
bonds or NCDs denominated in Singapore dollars with an original maturity period of less than 12 months and issued with a denomination of not less than $200,000;
(b)
a sum paid by or on behalf of any person whose total net personal assets exceed $2 million or its equivalent in foreign currency at the time of the payment, or whose income in the preceding 12 months is not less than $300,000 or its equivalent in foreign currency at the time of the payment, in consideration for the issue to him by the recipient of bonds or NCDs denominated in Singapore dollars with an original maturity period of less than 12 months;
(c)
a sum paid by or on behalf of a company whose total net assets exceed $10 million in value or its equivalent in foreign currency as determined by the last audited balance-sheet of the company in consideration for the issue to the company, by the recipient, of bonds or NCDs denominated in Singapore dollars with an original maturity period of less than 12 months;
(d)
a sum paid by or on behalf of an officer of the recipient, a close relative of an officer of the recipient or a close relative of the recipient (if the recipient is a natural person), in consideration for the issue to the payer by the recipient, of bonds or NCDs denominated in Singapore dollars with an original maturity of less than 12 months;
(e)
a sum paid by or on behalf of any person in consideration of the issue to him of Singapore Government Securities; or
(f)
a sum paid by or on behalf of any person in consideration of the issue to him of bonds issued by any statutory board.
5A. The following institutions are prescribed as international financial institutions for the purposes of section 5(2)(g) of the Act:
(a)
African Development Bank;
(b)
Asian Development Bank;
(c)
Bank for International Settlements;
(d)
Caribbean Development Bank;
(e)
Council of Europe Development Bank;
(f)
European Bank for Reconstruction and Development;
(g)
European Central Bank;
(h)
European Investment Bank;
(i)
Inter-American Development Bank;
(j)
Islamic Development Bank;
(k)
Nordic Investment Bank; and
(l)
World Bank Group.
[S 238/2007 wef 11/06/2007]
Additional disclosure requirements for exemption under regulation 5
6.
—(1) Without prejudice to any disclosure requirements under any other written law, for the purposes of qualifying for the exemption under regulation 5, bonds or NCDs denominated in Singapore dollars which are issued with a denomination of less than $200,000, shall have contained —
(a)
in any prospectus and any profile statement in respect of its issue; or
(b)
where such documents are not required in respect of its issue, in an information memorandum to be issued, circulated or distributed in respect of its issue,
the additional information set out in paragraph (2).
(2) The additional information required to be disclosed under paragraph (1) are —
(a)
a statement of the place of booking of the issue;
(b)
where the name of the issuer contains the word “bank”, “finance” or any of its derivatives in any language and —
(i)
the place of booking of the issue is not Singapore; or
(ii)
the issuer is not regulated or authorised by the Authority under any written law,
a statement that the branch or office of the issuer at which the issue is booked is not subject to regulation or supervision in Singapore;
(c)
where repayment under the bond or NCD is secured (whether by mortgage, charge, guarantee or other means), a statement of the nature of the security, the name of the mortgagor, chargor or guarantor, as the case may be, and whether such person is regulated or authorised by the Authority under any written law; and
(d)
where repayment under the bond or NCD is not secured (whether by mortgage, charge, guarantee or other means), a statement that repayment is not secured by any means.