3. The Companies (Central Depository System) Regulations are amended by inserting, immediately after regulation 25, the following regulation:| “Approval of depository fee by Monetary Authority of Singapore |
25A.—(1) The Depository shall not —| (a) | impose any depository fee; or | | (b) | modify, restructure or otherwise change any existing depository fee, |
| without the prior approval of the Monetary Authority of Singapore. |
| (2) An application to the Monetary Authority of Singapore for approval under paragraph (1) shall be made in Form N. |
| (3) The Monetary Authority of Singapore may require the Depository to furnish it with such information or documents as the Monetary Authority of Singapore considers necessary in relation to the application referred to in paragraph (2) and the Depository shall furnish such information or documents as the Monetary Authority of Singapore may require. |
| (4) The Monetary Authority of Singapore shall, within 20 business days of receipt of a completed application referred to in paragraph (2), by notice in writing to the Depository, either grant the approval or notify the Depository of its intention to refuse to grant the approval. |
(5) The Monetary Authority of Singapore may, by notice in writing to the Depository, extend the period referred to in paragraph (4) —| (a) | to a maximum of 35 business days from the day of receipt of a completed application referred to in paragraph (2); or | | (b) | for a further period of such duration as the Monetary Authority of Singapore thinks fit upon the expiry of the 35 business days referred to in sub-paragraph (a). |
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| (6) Where the Monetary Authority of Singapore extends the period referred to in paragraph (4) under paragraph (5)(b), the Monetary Authority of Singapore shall, prior to extending the period, give the Depository an opportunity to be heard. |
(7) The Monetary Authority of Singapore may have regard to the following matters for the purposes of deciding whether to grant or refuse to grant its approval:| (a) | the effect of the proposed imposition of, or change in, the depository fee on —| (i) | competition in the financial services industry of Singapore; and | | (ii) | access to depository services in Singapore; |
| | (b) | the cost of providing the service for which such proposed imposition of, or change in, depository fee is proposed; | | (c) | the effect of such proposed imposition of, or change in, depository fee on the cost and efficiency of trading, clearing and settlement and custody of book-entry securities in Singapore; and | | (d) | the effect of such proposed imposition of, or change in, depository fee on the objective of the Monetary Authority of Singapore as specified in section 4(c) of the Monetary Authority of Singapore Act (Cap. 186). |
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(8) The Monetary Authority of Singapore may grant its approval subject to such conditions or restrictions as the Monetary Authority of Singapore may think fit to impose by notice in writing to the Depository, including conditions or restrictions relating to —| (a) | the period for which the approval of a depository fee will be in force; | | (b) | the circumstances under which, or the date by which, the Depository will be required to submit another application for approval of the depository fee under paragraph (2) upon the expiry of the period referred to in sub-paragraph (a); and | | (c) | the circumstances under which, or the changes in the depository fee for which, the Depository will not be required to submit another application for approval of a change in the depository fee under paragraph (2) upon the expiry of the period referred to in sub-paragraph (a). |
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| (9) The Monetary Authority of Singapore shall not refuse to grant its approval without giving the Depository an opportunity to be heard. |
| (10) The Depository may only charge the depository fee approved by the Monetary Authority of Singapore under paragraph (1) for the service or services in respect of which it was approved. |
| (11) Any depository fee charged by the Depository before 17th March 2006 shall be deemed to be a depository fee approved by the Monetary Authority of Singapore under paragraph (1), subject to such conditions or restrictions as the Monetary Authority of Singapore may think fit to impose by notice in writing. |
| (12) A Depository which contravenes paragraph (1), (3) or (10) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.”. |
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