Division 5A — Recognition of foreign resolutions
General provisions
93.—(1)  In this Division, unless the context otherwise requires —
“determination” means a determination made under section 94;
“foreign financial institution” means a financial institution incorporated, formed or established in a foreign country or territory that has —
(a)a branch located in Singapore; or
(b)a subsidiary incorporated in Singapore,
that is approved, authorised, designated, recognised, registered, licensed or otherwise regulated by the Authority under this Act or any of the written laws set out in the Schedule;
“foreign resolution” means any action by a foreign resolution authority of a foreign country or territory to do either or both of the following:
(a)to maintain financial stability;
(b)to deal with any serious problem in a foreign financial institution of that country or territory which affects the ability of the financial institution to continue its business or operations as a financial institution, and which, if not dealt with, may cause the financial institution to be no longer able to continue its business or operations as a financial institution;
“foreign resolution authority”, in relation to a foreign country or territory, means an authority of that country or territory which, whether alone or together with one or more other authorities of that country or territory, is responsible for a foreign resolution, or for preparing plans for a foreign resolution;
“Singapore creditor”, in relation to a foreign financial institution, means —
(a)a creditor of the foreign financial institution, in respect of a liability incurred by the operations of its branch located in Singapore; or
(b)a creditor of a subsidiary incorporated in Singapore of the foreign financial institution;
“Singapore shareholder”, in relation to a foreign financial institution, means the holder of shares or similar instruments of a subsidiary incorporated in Singapore of the foreign financial institution.
(2)  The exercise of any power under this Division does not prevent the exercise of any other power of the Minister or the Authority under this Act or the relevant Act applicable to the foreign financial institution or to the subsidiary incorporated in Singapore of a foreign financial institution, as the case may be.
[Act 31 of 2017 wef 29/10/2018]
Determination over foreign resolution
94.—(1)  This section applies where a foreign resolution authority of a foreign country or territory makes a request to the Authority to recognise a foreign resolution in relation to a foreign financial institution by the foreign resolution authority.
(2)  The Authority must make a determination that —
(a)the foreign resolution should be recognised in whole or in part; or
(b)the foreign resolution should not be recognised.
(3)  The Authority may make a determination that the foreign resolution should be recognised in whole or in part if it is satisfied that all of the following conditions are fulfilled:
(a)recognition of the foreign resolution or part would not have a widespread adverse effect on the financial system in Singapore or the economy of Singapore, whether or not that effect occurs directly or indirectly as a result of the effects of recognising the resolution or part;
(b)recognition of the foreign resolution or part would not result in inequitable treatment of any Singapore creditor relative to any other creditor of the foreign financial institution with similar rights, or of any Singapore shareholder relative to any shareholder of the foreign financial institution;
(c)recognition of the foreign resolution or part would not be contrary to the national interest or public interest;
(d)recognition of the foreign resolution or part would not have material fiscal implications for Singapore;
(e)any other condition that is prescribed by regulations made under section 126 for the purposes of this paragraph.
(4)  Upon making a determination, the Authority must submit the determination to the Minister for approval.
(5)  The Minister may —
(a)approve the determination without modification;
(b)approve the determination subject to any modification the Minister considers appropriate; or
(c)refuse to approve the determination.
(6)  The Minister must not approve the determination under subsection (5)(a) or (b) unless satisfied that all of the conditions mentioned in subsection (3) are fulfilled.
(7)  An approval under subsection (5) is subject to such conditions as the Minister may determine, and the Minister may add to, vary or revoke any condition.
(8)  Any person to which a condition mentioned in subsection (7) applies, and who has been given written notice of that condition by the Authority, must comply with the condition.
(9)  A person that contravenes subsection (8) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
[Act 31 of 2017 wef 29/10/2018]
Order to give effect to foreign resolution
95.—(1)  If the Minister approves a determination that a foreign resolution should be recognised in whole or in part, the Minister must, as soon as practicable, by order in the Gazette, declare that the foreign resolution is to be recognised.
(2)  The order may make provision for any of the following matters, to take effect from a date specified in the order:
(a)matters that may be set out in a certificate of transfer pursuant to section 58(3);
(b)matters that may be set out in a certificate of transfer of shares pursuant to section 67(3);
(c)matters that may be set out in a certificate of restructuring of share capital pursuant to section 70(3);
(d)matters that may be set out in a bail-in certificate pursuant to section 75(3).
(3)  The matters mentioned in paragraphs (a) to (d) of subsection (2) may be modified for the purposes of giving effect to the foreign resolution.
(4)  To avoid doubt, provision may be made in the order for matters mentioned in subsection (2)(d) affecting instruments or liabilities entered into or accruing before the effective date of the order.
(5)  With effect from the effective date of the order, sections 58(8) to (17) and 59, section 67(6) to (13), section 70(6) to (14), or sections 76 to 80 (as the case may be), together with the regulations that are made under section 126 for the purpose of implementing those provisions, apply in relation to an order that provides for the matters mentioned in paragraph (a), (b), (c) or (d) of subsection (2), as they apply in relation to the certificate mentioned in that paragraph.
(6)  The provisions of this Act mentioned in subsection (5) apply subject to such modifications as the order may prescribe.
[Act 31 of 2017 wef 29/10/2018]
Directions
96.  The Authority may, from time to time, issue such directions to any person who is approved, authorised, designated, recognised, registered, licensed or otherwise regulated by the Authority under this Act or any of the written laws set out in the Schedule, as the Authority considers necessary for the purposes of giving full effect to the order mentioned in section 95.
[Act 31 of 2017 wef 29/10/2018]
Offence
97.—(1)  A person that refuses or fails to comply with a provision of the order under section 95 that applies to the person, or a direction issued to the person under section 96, shall be guilty of an offence and shall be liable on conviction —
(a)in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or
(b)in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
(2)  Where a person is charged with an offence under subsection (1), it is a defence for the person to prove that —
(a)the person was not aware of the contravention of the provision of the order or the direction; and
(b)the person has complied with the provision of the order or the direction within a reasonable time after becoming aware of the contravention.
(3)  Except as provided in subsection (2), it is not a defence for a person charged with an offence under subsection (1) that the person did not intend to or did not knowingly contravene the provision of the order or the direction.
[Act 31 of 2017 wef 29/10/2018]