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] |
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| (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. |
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| 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] |
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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] |
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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] |
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| 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] |
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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] |
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| (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] |
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| 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. |
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| (3) Subsection (2)(b) and (c) shall not apply to a director who is appointed managing director under section 9. |
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| Appointment of managing director |
| 9.—(1) The President shall, if he concurs with the advice or recommendation of the Public Service Commission, appoint one of the directors appointed under section 8 to be the managing director. [11/91] | (2) The managing director shall be an employee of the Authority on such terms and conditions of service as the President may decide. |
| (3) The managing director shall be entrusted with the day-to-day administration of the Authority, and may, subject to this Act, make decisions and exercise all powers and do all acts which may be exercised or done by the Authority under this Act or any other written law. |
| (4) The managing director shall be answerable to the board for his acts and decisions. |
(5) In the event of the absence or inability to act of the managing director, the Minister may appoint —| (a) | a director; or | | (b) | with the President’s concurrence, an officer of the Authority who holds the appointment of assistant managing director or its equivalent or above, |
| to discharge the duties of the managing director during the period of his absence or inability to act. |
[13/2007 wef 30/06/2007] |
| (6) The managing director may, subject to such terms and conditions as he thinks fit, appoint any officer or employee of the Authority, or form any committee comprising officers or employees of the Authority or both, to exercise any of his powers or perform any of his functions or duties conferred or imposed upon him by virtue of subsection (3), and that officer, employee or committee shall exercise those powers or perform those functions or duties under the direction and control of the managing director. |
(7) For the avoidance of doubt, the managing director —| (a) | shall remain responsible for any exercise of his powers or any performance of his functions or duties by any officer or employee appointed or by any committee formed under subsection (6); and | | (b) | may continue to exercise his powers or perform his functions or duties conferred or imposed upon him by virtue of subsection (3), notwithstanding the delegation of the power, function or duty under subsection (6). |
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| Disqualification of directors |
| 10.—(1) No person may be appointed as or remain a director of the Authority who is a director or salaried official of any financial institution licensed or approved by the Authority under any written law. [28/98] (2) The President may terminate the appointment of any director appointed under section 8(1) if the director —| (a) | resigns his office; | | (b) | becomes mentally disordered and incapable of managing himself or his affairs; [21/2008 wef 01/03/2010] | | (c) | becomes bankrupt or suspends payment to or compounds with his creditors; | | (d) | is convicted of an offence involving dishonesty or fraud or moral turpitude; | | (e) | is guilty of serious misconduct in relation to his duties; | | (f) | is absent, without leave, from 3 consecutive meetings of the board; or | | (g) | fails to comply with his obligations under section 13. |
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| Vacancies in office of director |
| 11. If any director appointed under section 8(1) dies or resigns or otherwise vacates his office before the expiry of the term for which he has been appointed, another person may be appointed by the President for the unexpired period of the term of office of the director in whose place he is appointed. |
| 11A. The President, acting in his discretion, may refuse to appoint any person as chairman, deputy chairman, director or managing director or to revoke any such appointment if the President does not concur with the advice or recommendation of the Minister, the Cabinet, a Minister acting under the general authority of the Cabinet or the Public Service Commission, as the case may be, and may refuse to concur with an appointment by the Minister under section 9(5)(b). [11/91] [13/2007 wef 30/6/2007] |
| Meetings and decisions of board |
12.—(1) The chairman of the board shall summon meetings as often as may be required but not less frequently than once in 3 months.| (2) At every meeting of the board, a quorum shall consist of 4 directors or a simple majority of the directors, whichever is the larger, and decisions shall be adopted by a simple majority of the votes of the directors present and voting except that in the case of an equality of votes the chairman shall have a casting vote. [28/98] |
| (3) For the avoidance of doubt, a decision of the board may be made by way of a resolution passed by a simple majority of the directors by written or electronic means. [24/2003 wef 01/01/2004] |
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| Director’s interest in contract to be made known |
13.—(1) A director who is, directly or indirectly, interested in a contract made, or proposed to be made, by the Authority shall disclose the nature of his interest at the first meeting of the board at which he is present after the relevant facts have come to his knowledge.(2) A disclosure under subsection (1) shall be recorded in the minutes of the board and, after the disclosure, the director —| (a) | shall not take part in any deliberation or decision of the board with respect to that contract; and | | (b) | shall be disregarded for the purpose of constituting a quorum of the board for any such deliberation or decision. |
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| (3) No act or proceeding of the board shall be questioned on the ground that a director has contravened this section. |
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| Appointment of committees and delegation of powers |
| 13A.—(1) The Authority may appoint from among its directors or other persons who are not directors such number of committees as it thinks fit for purposes which, in the opinion of the Authority, would be better regulated and managed by means of such committees. [24/2003 wef 01/01/2004] | (2) The Authority may, subject to such conditions or restrictions as it thinks fit, delegate to any such committee or any director any of the powers, functions or duties of the Authority under this Act or any other written law, except the power of delegation conferred by this subsection and the power to make subsidiary legislation unless expressly provided under any written law. [24/2003 wef 01/01/2004] |
| (3) Any power, function or duty delegated under subsection (2) may be exercised or performed by such committee or director, as the case may be, in the name and on behalf of the Authority. [24/2003 wef 01/01/2004] |
| (4) The Authority may continue to exercise a power conferred upon it, or perform a function or duty under this Act or any other written law, notwithstanding the delegation of the power, function or duty under this section. [24/2003 wef 01/01/2004] |
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| Appointment of assistants |
13B.—(1) The Authority may appoint any person to exercise any of its powers or perform any of its functions or duties under this Act, either generally or in any particular case, except the power of appointment conferred by this subsection, the power of delegation conferred by section 13A(2) and the power to make subsidiary legislation.| (2) Any person appointed by the Authority under subsection (1) shall be deemed to be a public servant for the purposes of the Penal Code (Cap. 224). [Act 9 of 2013 wef 18/04/2013] |
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| 14.—(1) Except for the purpose of the performance of his duties or the exercise of his functions or when lawfully required to do so by any court or under the provisions of any written law, no person who is or has been a director, officer, employee, consultant or agent of the Authority shall disclose to any person any information relating to the affairs of the Authority or of any person which he has acquired in the performance of his duties or the exercise of his functions. [25/2002 wef 01/10/2002] [26/84] | (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 3 years or to both. [26/84] |
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| Remuneration not to be related to profits |
| 15. No salary, fee, wage or other remuneration or allowance paid by the Authority shall be computed by reference to the profits of the Authority. |
| Public servants and public officers |
| 16.—(1) The directors, including the managing director, and the officers and employees of the Authority of every description shall be deemed to be public servants within the meaning of the Penal Code (Cap. 224). [Act 9 of 2013 wef 18/04/2013] | (2) The directors, including the managing director, and the officers and employees of the Authority shall, in relation to their administration, collection and enforcement of payment of any moneys to be paid to or into the Consolidated Fund under this Act or any of the written laws set out in the Schedule, be deemed to be public officers for the purposes of the Financial Procedure Act (Cap. 109), and section 20 of that Act shall apply to such persons notwithstanding that they are not or were not in the employment of the Government. [Act 9 of 2013 wef 18/04/2013] |
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