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Monetary Authority of Singapore (Amendment) Bill

Bill No. 23/1984

Read the first time on 24th July 1984.

An Act to amend the Monetary Authority of Singapore Act (Chapter 195 of the Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1. This Act may be cited as the Monetary Authority of Singapore (Amendment) Act 1984 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 2

2. Section 2 of the Monetary Authority of Singapore Act (referred to in this Act as the principal Act) is amended by deleting the definition of “Minister”.

Amendment of section 7

3. Section 7 (3) of the principal Act is amended by deleting paragraphs (a), (b), (c) and (d) and substituting the following paragraphs:

“(a)	the Minister who shall be the chairman; and
(b)	six other directors, one of whom shall be the deputy chairman, appointed in accordance with sections 8 and 9.”.

Amendment of section 8

4. Section 8 (1) of the principal Act is amended —

(a)	by deleting the words “paragraph (d)” and substituting the words “paragraph (b)”; and
(b)	by inserting, immediately after the word “President” at the end, the words “who shall, on the recommendation of the Minister, also appoint the deputy chairman”.

Amendment of section 14

5. Section 14 of the principal Act is amended —

(a)	by deleting the word “director” in the fourth line of subsection (1) and substituting the words “person who is or has been a director”; and
(b)	by deleting the word “five thousand dollars” in subsection (2) and substituting “$20,000”.

Repeal and re-enactment of section 17

6. Section 17 of the principal Act is repealed and the following section substituted therefor:

“Appointment of employees

17.—(1) The Authority may appoint such employees as it thinks fit and determine all matters relating to their remuneration and terms and conditions of appointment and employment.

(2) The Authority may engage the services of advisers in such manner and on such terms and conditions as it thinks fit.

(3) The Authority may make rules, not inconsistent with this Act, for the appointment, promotion, conduct and discipline and terms and conditions of service of its employees.”.

Amendment of section 21

7. Section 21 of the principal Act is amended —

(a)

by deleting subsection (2) and substituting the following subsection:

“(2) Upon the coming into operation of the Monetary Authority of Singapore (Amendment) Act 1984, there shall be transferred to the Authority —

(a)	all the functions, duties and powers of the Commissioner of Insurance under the Insurance Act (Cap. 193); and
(b)	all the functions, duties and powers of the Registrar of Companies and the Accountant-General under the Securities Industry Act 1973 (Act 71 of 1973).”; and

(b)

by deleting subsection (4) and substituting the following subsection:

“(4) Where in any written law or any document whatsoever there is a reference to the Minister for Finance, the Commissioner of Banking, the Commissioner for Finance Companies, the Commissioner of Chit Funds, the Accountant-General, the Controller of Foreign Exchange, the Commissioner of Insurance or the Registrar of Companies in connection with or related to the performance of any of the functions, duties and powers that are transferred to the Authority under subsection (1) or (2) the written law or document shall have effect as if the Authority has originally been referred to in the written law or document instead of the Minister for Finance, the Commissioner of Banking, the Commissioner for Finance Companies, the Commissioner of Chit Funds, the Accountant-General, the Controller of Foreign Exchange, the Commissioner of Insurance or the Registrar of Companies, as the case may be.”.

New section 21A

8. The principal Act is amended by inserting, immediately after section 21, the following section:

“Protection from personal liability

21A. No suit or other legal proceedings shall lie against any member, officer or employee of the Authority or other person acting under the direction of the Authority for anything which is in good faith done or intended to be done in the execution or purported execution of this Act.”.

Amendment of section 22

9. Section 22 of the principal Act is amended by renumbering the section as subsection (1) of that section, and —

(a)

by inserting, immediately after the word “money” in paragraph (a), the words “and pay interest on such deposits”;

(b)

by deleting the word “advances” in the first line of paragraph (g) and substituting the words “loans, advances or other credit facilities”;

(c)

by inserting, immediately after the word “months” in the fifth line of paragraph (g), the words “(which may at the discretion of the Authority extend to a further period of 3 months)”;

(d)

by inserting, immediately after the words “public authorities,” in paragraph (o), the words “companies in which the Government or a public authority has a substantial interest, and companies which are deemed to be related to those companies by virtue of section 6 of the Companies Act (Cap. 185),”;

(e)

by deleting the words “loans publicly” in paragraph (q) and substituting the word “securities”; and

(f)

by inserting, immediately after paragraph (r), the following subsection:

“(2) For the purposes of subsection (1)(o) and section 25(d), the Government or a public authority shall have a substantial interest in a company if it, either by itself or together with any other public authority, has an interest or interests in one or more voting shares in the company and the nominal amount of that share, or the aggregate of nominal amounts of those shares either held by itself or together with any other public authority, is not less than 20 per cent of the aggregate of the nominal amount of all the voting shares in the company.”.

Amendment of section 23

10. Section 23(b) of the principal Act is deleted and the following paragraph substituted therefor:

“(b)	notes, coins, money at call and deposits in such country or countries as may be approved by the board;”.

Amendment of section 24A

11. Section 24A of the principal Act is amended by deleting the word “approve” and substituting the word “determine”.

Amendment of section 24B

12. Section 24B of the principal Act is amended —

(a)	by deleting the word “approve” in subsection (1) and substituting the word “determine”; and
(b)	by deleting the words “five thousand dollars” in subsection (4) and substituting “$20,000”.

New sections 24C and 24D

13. The principal Act is amended by inserting, immediately after section 24B, the following sections:

“Power to approve financial institutions and control their operations

24C.—(1) The Authority may require any financial institution or class or classes of financial institutions whose operations are considered by the Authority to affect —

(a)	monetary stability and credit and exchange conditions in Singapore;
(b)	the development of Singapore as a financial centre; or
(c)	the financial situation of Singapore generally,

to be approved by the Authority for the purpose of carrying on business in Singapore.

(2) On an application in writing for approval pursuant to subsection (1), the Authority may —

(a)	grant approval;
(b)	refuse to grant approval and shall not be obliged to give reasons for its refusal; or
(c)	grant approval subject to such conditions as it sees fit to impose.

(3) Without prejudice to the generality of section 24B, the Authority may, if it thinks it necessary or expedient in the public interest, give directions either of a general or special nature, to approved financial institutions or any class or classes of approved financial institutions in relation to —

(a)	the range of activities that they may engage in or the range of services that they may provide;
(b)	the terms and conditions under which they may carry on a particular activity or provide a particular service; and
(c)	all matters in which it appears to the Authority that the activities that they engage in or the services that they provide affect or are likely to affect monetary or economic policy or credit conditions or the development of Singapore as a financial centre,

and the financial institutions concerned shall comply with such directions.

(4) The Authority may, from time to time, issue guidelines to and impose conditions of operation on such financial institutions as it thinks fit and may amend or revise those guidelines and conditions.

(5) The Authority may withdraw approval of a financial institution if it appears to the Authority that —

(a)	any information required to be furnished in connection with an application for approval was false or misleading in a material particular;
(b)	the financial institution has failed to comply with any direction or guideline issued or condition attached to an approval or conditions of operation imposed under this section;
(c)	the financial institution has conducted its affairs so as to threaten the interests of its depositors or customers; or
(d)	it is in the public interest to do so.

(6) Any financial institution, which is aggrieved by a decision of the Authority to withdraw approval, may appeal against the decision to the Minister whose decision shall be final.

(7) A financial institution required under subsection (1) to obtain the Authority’s approval, that carries on its business without first obtaining that approval shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and in the case of a continuing offence to a further fine of $3,000 for every day during which the offence continues after conviction.

(8) An approved financial institution that fails to comply with any direction given under subsection (3) or any condition subject to which an approval is granted under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and in the case of a continuing offence to a further fine of $2,000 for every day during which the offence continues after conviction.

Fees

24D.—(1) Every financial institution approved by the Authority under section 24C may be required to pay such fees in respect of anything done under or by virtue of that section as the Authority may by notification in the Gazette prescribe.

(2) The Authority may prescribe different fees in respect of different classes of financial institutions and such fees shall apply uniformly to such classes.

(3) The manner of payment shall be as specified by the Authority.”.

Amendment of section 25

14. Section 25(d) of the principal Act is amended by inserting, immediately after the words “public authority”, the words “or any company in which the Government or a public authority has a substantial interest or any company which is deemed to be related to that company by virtue of section 6 of the Companies Act (Cap. 185)”.

Amendment of section 26

15. Section 26(3) of the principal Act is amended by deleting the words “five hundred dollars” and substituting “$2,000”.

Repeal and re-enactment of section 30

16. Section 30 of the principal Act is repealed and the following section substituted therefor:

“Borrowing from Authority by employees

30. The Authority may grant loans to its employees for any purpose specifically approved by the Authority.”.

New section 35A

17. The principal Act is amended by inserting, immediately after section 35, the following section:

“Immunity of Authority from defamation suits

35A.—(1) The Authority shall not in the absence of malice on its part be liable to any action for defamation at the suit of any person in respect of any statements made in the discharge of any of its functions under this Act whether the statements are made orally or in writing.

(2) Subsection (1) shall not restrict or affect any other right or privilege or immunity of the Authority as a defendant in an action for defamation.

(3) For the purposes of this section —

“functions” includes the function of exercising supervisory powers over financial institutions whether this is by way of inquiry into the conduct of their affairs or otherwise;

“affairs” includes trading, dealings and business of financial institutions.”.