Financial Services and Markets Act 2022 - Singapore Statutes Online

PART 6

DISPUTE RESOLUTION SCHEMES

Interpretation of this Part

30. In this Part, unless the context otherwise requires —

“approved dispute resolution scheme” means a dispute resolution scheme approved by the Authority under section 31(1);

“operator”, in relation to a dispute resolution scheme approved under section 31(1), means a person who administers a dispute resolution scheme;

“terms of reference”, in relation to an approved dispute resolution scheme, means the terms which define the scope, application, operations and procedures of the approved dispute resolution scheme.

Approval of dispute resolution schemes

31.—(1) For the purposes of this Part, the Authority may approve any dispute resolution scheme for the resolution of disputes arising from or relating to the provision of financial services by financial institutions.

(2) An application for approval of a dispute resolution scheme must —

(a)	be made by the person who intends to administer the dispute resolution scheme as its operator;
(b)	be made in such form and manner as the Authority may specify;
(c)	be accompanied by an application fee (if prescribed);
(d)	be accompanied by the proposed terms of reference for the dispute resolution scheme; and
(e)	provide any information or document as the Authority may require for the purposes of the application.

(3) The approval of a dispute resolution scheme on an application made under subsection (2) is subject to such conditions as may be prescribed or as may be specified by the Authority, or both.

(4) The Authority may refuse to approve an application for a dispute resolution scheme made under subsection (2) if —

(a)

the applicant of the dispute resolution scheme does not meet the prescribed requirements;

(b)

the proposed terms of reference for the dispute resolution scheme do not meet the prescribed requirements;

(c)

the applicant has not provided the Authority with the information or documents required by the Authority for the purposes of the application;

(d)

the applicant has provided to the Authority any false or misleading information or document;

(e)

the Authority has reason to believe that the applicant —

(i)	will not administer the dispute resolution scheme efficiently, honestly or fairly; or
(ii)	may not act in the interests of the members of the dispute resolution scheme or consumers; or

(f)

the Authority is of the opinion that it would be contrary to the public interest to approve the dispute resolution scheme.

Approval of chief executive officer and directors of dispute resolution scheme operator

32.—(1) It is a condition of an approval for any dispute resolution scheme approved under section 31(1) that the operator of an approved dispute resolution scheme must not appoint a person as its chief executive officer or director without the prior approval of the Authority.

(2) Without limiting any other matter that the Authority may consider relevant, the Authority may, in determining whether to grant its approval under subsection (1), have regard to such criteria as may be prescribed or as the Authority may notify in writing to the operator of the dispute resolution scheme.

Removal of chief executive officer or director of dispute resolution scheme operator

33.—(1) Despite the provisions of any other written law, where the Authority is satisfied that an individual appointed as chief executive officer or director of an operator of an approved dispute resolution scheme is not a fit and proper person under the Guidelines on Fit and Proper Criteria to be a chief executive officer or director (as the case may be) of the operator, the Authority may, by written notice to the operator, direct the operator to remove the chief executive officer or director (as the case may be) from his or her office or employment within such period as may be specified by the Authority in the notice, and the operator must comply with the notice.

(2) Without affecting any other matter that the Authority may consider relevant, in assessing whether to direct an operator to remove an individual under subsection (1), the Authority may consider any matter which the Authority considers relevant, including (but not limited to) whether —

(a)	the individual has wilfully contravened or wilfully caused the operator to contravene any provision of this Act;
(b)	the individual has, without reasonable excuse, failed to secure the compliance of the operator with this Act;
(c)	the individual has failed to discharge any of the duties of his or her office or employment; or
(d)	the individual’s removal is necessary in the public interest or for the protection of investors.

(3) Before directing an operator to remove an individual under subsection (1), the Authority must give both the operator and the affected individual an opportunity to be heard, except in any of the following circumstances:

(a)

the individual is an undischarged bankrupt, whether in Singapore or elsewhere;

(b)

the individual has been convicted, whether in Singapore or elsewhere, of an offence, committed before, on or after the date of commencement of this Part —

(i)	involving fraud or dishonesty or the conviction for which involved a finding that the individual had acted fraudulently or dishonestly; and
(ii)	punishable with imprisonment for a term of 3 months or more.

Appeals to Minister

34. An operator, or a chief executive officer or director of an operator, who is aggrieved by a decision of the Authority under section 33(1) may, within 30 days after receiving the direction, appeal in writing to the Minister, whose decision is final.

Approval of amendment to constitution of dispute resolution scheme operator

35. It is a condition of an approval for any dispute resolution scheme approved under section 31(1) that the operator of the approved dispute resolution scheme that is a company must not amend its constitution without the prior approval of the Authority.

Requirement for financial institution to be member of approved dispute resolution scheme

36.—(1) The Authority may, by regulations made under section 192, require a financial institution to be a member of such approved dispute resolution scheme and to comply with such terms of membership of the scheme as may be prescribed.

(2) A financial institution that, without reasonable excuse, contravenes any regulations mentioned in subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.

(3) Where the Authority is satisfied that a financial institution has contravened any regulations mentioned in subsection (1), the Authority may do one or both of the following:

(a)

if the Authority thinks it necessary in the public interest or for the protection of consumers, reprimand the financial institution;

(b)

impose on the financial institution under this Act or any other MAS scheduled Act under which the financial institution is licensed, approved, authorised, designated, recognised, registered, or otherwise regulated, or exempted from being licensed, approved, authorised, designated, recognised, registered or regulated, such conditions or restrictions, on its licence, approval, authorisation, designation, recognition, registration, or exemption under that Act as the Authority thinks fit, including restricting the scope of the activities which the financial institution is allowed to conduct under that Act; and the financial institution must comply with those conditions or restrictions.

(4) Any power of the Authority under the Act referred to in subsection (3)(b) to impose conditions or restrictions on the licence, approval, authorisation, designation, recognition, registration, or exemption is, despite anything to the contrary in that Act, deemed to include the power to impose the conditions or restrictions referred to in subsection (3)(b).

Protection from personal liability

37. No liability shall lie against any mediator, adjudicator or employee of an operator of an approved dispute resolution scheme, for doing or omitting to do any act, if the act is done or omitted to be done with reasonable care and in good faith in the course of or in connection with any mediation or adjudication of a dispute under the approved dispute resolution scheme.

Regulations for this Part

38.—(1) Regulations may be made under section 192 —

(a)	to provide for the matters that the Authority may have regard to in determining whether to approve a dispute resolution scheme under section 31(1);
(b)	to prescribe a list of dispute resolution schemes approved under section 31(1);
(c)	to provide for the suspension or cancellation of approvals under section 31(1);
(d)	to provide for the conditions for approval of a dispute resolution scheme including for matters relating to the constitution of the management of an operator of an approved dispute resolution scheme, and the operations of an operator of an approved dispute resolution scheme, including the standards or requirements of its operations, the fees that may be charged for its dispute resolution services, the records that must be kept, the period of retention of the records, the reports that are to be submitted to the Authority, the time for such submission, the terms of membership with the scheme, the procedure for dispute resolution and other matters relating to the administration of the scheme; and
(e)	to generally to give effect to or for carrying out the purposes of this Part.

(2) Regulations made for the purposes of subsection (1) may provide that any contravention of any specified provision of the regulations shall be an offence punishable (despite section 192(2)(d)) with a fine not exceeding $50,000.

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