No. S 325
Banking (Amendment No. 2) Regulations 2006
In exercise of the powers conferred by sections 30 (1)(d) and 78(1) of the Banking Act, the Monetary Authority of Singapore hereby makes the following Regulations:
1. These Regulations may be cited as the Banking (Amendment No. 2) Regulations 2006 and shall come into operation on 12th June 2006.
3. The Banking Regulations are amended by inserting, immediately after regulation 22, the following regulation:
—(1) For the purposes of section 30(1)(d) of the Act, and subject to paragraph (2), the business of purchasing and selling assets is prescribed as a business that any bank in Singapore may carry on, or enter into any partnership, joint venture or other arrangement with any person to carry on, if such business is carried on under the following arrangement:
for the purpose of making funds of a customer available to a bank, the customer appoints the bank or any other person as agent, to purchase on his behalf, an asset, in circumstances where the asset is existing at the time of the purchase;
an amount of money (the original price) is paid by the customer to the bank or such other person referred to in sub-paragraph (a), as the case may be, for the purchase of the asset;
the bank purchases the asset from the customer at a price (the marked-up price) that is greater than the original price, and sells the asset;
the bank and customer, 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 original price (which represents the profit or return to the customer for making funds available to the bank); and
the marked-up price or any part thereof is not required to be paid by the bank to the customer until after the date of sale of the asset by the bank.
(2) The bank shall notify the Authority of its —
intention to commence the business referred to in paragraph (1); or
commencement of such business within 14 days after the commencement of such business.”.
[G.N. Nos. S 622/2005; S 170/2006]
[PPD 01/2003; AG/LEG/SL/19/2003/1 Vol. 5]