On 23/05/2013,
you requested for the version in force on 23/05/2013
incorporating all amendments published on or before 23/05/2013.
The closest version currently available is that of 01/04/2006.
8.
—(1) Where —
(a)
a corporation has made an application under section 7(1)(a);
(b)
a corporation which is a recognised market operator has made an application under section 11(1) to change its status to that of an approved exchange; or
(c)
the Authority has conducted a review under section 11(5) and has determined that a corporation would be more appropriately regulated as an approved exchange,
the Authority may approve the corporation as an approved exchange.
[1/2005]
(2) Where —
(a)
a corporation has made an application under section 7(1)(b);
(b)
a corporation which is an approved exchange has made an application under section 11(1) to change its status to that of a recognised market operator; or
(c)
the Authority has conducted a review under section 11(5) and has determined that a corporation would be more appropriately regulated as a recognised market operator,
the Authority may recognise the corporation as a recognised market operator.
[1/2005]
(3) Notwithstanding subsections (1) and (2), the Authority may, with the consent of the applicant —
(a)
treat an application under section 7(1)(a) as an application under section 7(1)(b) if it is of the opinion that the applicant would be more appropriately regulated as a recognised market operator; or
(b)
treat an application under section 7(1)(b) as an application under section 7(1)(a) if it is of the opinion that the applicant would be more appropriately regulated as an approved exchange.
[1/2005]
(4) The Authority may approve a corporation as an approved exchange under subsection (1) or recognise a corporation as a recognised market operator under subsection (2) subject to such conditions or restrictions as the Authority may think fit to impose by notice in writing, including conditions or restrictions relating to —
(a)
the activities that the corporation may undertake;
(b)
the securities or futures contracts that may be traded on any market established or operated by the corporation; and
(c)
the nature of the investors or participants who may use, invest in or participate in the securities or futures contracts traded on any market established or operated by the corporation.
[1/2005]
(5) The Authority may, at any time, by notice in writing to the corporation, vary any condition or restriction or impose such further condition or restriction as it may think fit.
[1/2005]
(6) An approved exchange or a recognised market operator shall, for the duration of the approval or recognition, satisfy all conditions and restrictions that may be imposed on it under subsections (4) and (5).
[1/2005]
(7) The Authority may refuse to approve a corporation as an approved exchange or recognise a corporation as a recognised market operator if —
(a)
the corporation has not provided the Authority with such information relating to —
(i)
the corporation or any person employed by or associated with the corporation for the purposes of the corporation’s business; or
(ii)
any circumstances likely to affect the corporation’s manner of conducting business,
as the Authority may require;
(b)
any information or document provided by the corporation to the Authority is false or misleading;
(c)
the corporation or a substantial shareholder of the corporation is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
(d)
execution against the corporation or a substantial shareholder of the corporation in respect of a judgment debt has been returned unsatisfied in whole or in part;
(e)
a receiver, a receiver and manager, a judicial manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of, any property of the corporation or a substantial shareholder of the corporation;
(f)
the corporation or a substantial shareholder of the corporation has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with the creditors of the corporation or shareholder, as the case may be, being a compromise or scheme of arrangement that is still in operation;
(g)
the corporation, a substantial shareholder of the corporation or any officer of the corporation —
(i)
has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that the corporation, shareholder or officer, as the case may be, had acted fraudulently or dishonestly; or
(ii)
has been convicted of an offence under this Act;
(h)
the Authority is not satisfied as to the educational or other qualifications or experience of the officers or employees of the corporation, having regard to the nature of the duties they are to perform in connection with the establishment or operation of any market;
(i)
the corporation fails to satisfy the Authority that the corporation is a fit and proper person or that all of its officers, employees and substantial shareholders are fit and proper persons;
(j)
the Authority has reason to believe that the corporation may not be able to act in the best interests of investors or its members, participants or customers, having regard to the reputation, character, financial integrity and reliability of the corporation or its officers, employees or substantial shareholders;
(k)
the Authority is not satisfied as to —
(i)
the financial standing of the corporation or any of its substantial shareholders; or
(ii)
the manner in which the business of the corporation is to be conducted;
(l)
the Authority is not satisfied as to the record of past performance or expertise of the corporation, having regard to the nature of the business which the corporation may carry on in connection with the establishment or operation of any market;
(m)
there are other circumstances which are likely to —
(i)
lead to the improper conduct of business by the corporation or any of its officers, employees or substantial shareholders; or
(ii)
reflect discredit on the manner of conducting the business of the corporation or any of its substantial shareholders;
(n)
in the case of any market that the corporation operates, the Authority has reason to believe that the corporation, or any of its officers or employees, will not operate a fair, orderly and transparent market;
(o)
the corporation does not satisfy the criteria prescribed under section 9 to be approved as an approved exchange or recognised as a recognised market operator, as the case may be; or
(p)
the Authority is of the opinion that it would be contrary to the interests of the public to approve or recognise the corporation.
[1/2005]
(8) Subject to subsection (9), the Authority shall not refuse to approve a corporation as an approved exchange or recognise a corporation as a recognised market operator under subsection (7) without giving the corporation an opportunity to be heard.
[1/2005]
(9) The Authority may refuse to approve a corporation as an approved exchange or recognise a corporation as a recognised market operator on any of the following grounds without giving the corporation an opportunity to be heard:
(a)
the corporation is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere;
(b)
a receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of, any property of the corporation;
(c)
the corporation has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.
[1/2005]
(10) The Authority shall give notice in the Gazette of any corporation approved as an approved exchange under subsection (1) or recognised as a recognised market operator under subsection (2), and such notice may include the conditions or restrictions imposed by the Authority on the corporation under subsection (4)(b) in relation to the securities or futures contracts that may be traded on any market established or operated by the corporation.
[1/2005]
(11) Any applicant who is aggrieved by a refusal of the Authority to grant an approval under subsection (1) or a recognition under subsection (2) may, within 30 days after the applicant is notified of the decision, appeal to the Minister whose decision shall be final.
[1/2005]
(12) Any approved exchange or recognised market operator which contravenes subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.
[1/2005]
[SIA, s. 16; FTA, s. 4; UK FSMA 2000, s. 289 (1) & (2)]