Notices to significant associated entities of specified financial institutions
121.—(1)  The Authority may, if it thinks it necessary or expedient in the public interest, in the interests of any affected person or class of affected persons of a specified financial institution or in the interests of the financial system in Singapore, by written notice to a significant associated entity of the specified financial institution, give directions or impose requirements on or relating to the operations or activities of the significant associated entity, including directions that the significant associated entity —
(a)take such action, or do or not do such act or thing, as the Authority may specify in the notice; or
(b)continue to provide such services as the Authority may specify in the notice to —
(i)the specified financial institution; or
(ii)all or any of the entities treated, for accounting purposes according to the Accounting Standards, as part of the group of companies of the specified financial institution.
[9/2013; 31/2017]
(2)  A significant associated entity of a specified financial institution must comply with any direction given to the significant associated entity, or any requirement imposed on the significant associated entity, by any notice issued to the significant associated entity under subsection (1).
[9/2013]
(3)  It is not necessary to publish any notice issued under subsection (1) in the Gazette.
[9/2013]
(4)  Any significant associated entity (of a specified financial institution) which contravenes subsection (2) 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.
[9/2013]
(5)  In this section —
“Accounting Standards” has the meaning given by section 4(1) of the Companies Act 1967;
“group of companies”, in relation to a specified financial institution, means —
(a)the specified financial institution;
(b)the entities that are subsidiaries of the specified financial institution; and
(c)the entity that is the holding company of the specified financial institution, and the entities that are subsidiaries of that holding company;
“significant associated entity”, in relation to a specified financial institution, means an entity incorporated, formed or established in Singapore —
(a)which is treated, for accounting purposes according to the Accounting Standards, as part of the group of companies of the specified financial institution;
(b)which is not approved, authorised, designated, recognised, registered, licensed or otherwise regulated under this Act or any of the written laws set out in the Schedule; and
(c)which —
(i)is significant to the business of —
(A)the specified financial institution; or
(B)all or any of the entities which are treated, for accounting purposes according to the Accounting Standards, as part of the group of companies of the specified financial institution; or
(ii)provides any service which is essential or necessary for the continued operation of —
(A)the specified financial institution; or
(B)all or any of the entities which are treated, for accounting purposes according to the Accounting Standards, as part of the group of companies of the specified financial institution.
[9/2013]