Banking (Corporate Governance) (Amendment) Regulations 2007

Status:

Published in Subsidiary Legislation Supplement
on 06 Jun 2007

No. S 239

Banking Act

(Chapter 19)

Banking (Corporate Governance) (Amendment) Regulations 2007

In exercise of the powers conferred by section 78 of the Banking Act, the Monetary Authority of Singapore hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Banking (Corporate Governance) (Amendment) Regulations 2007 and shall come into operation on 11th June 2007.

New regulation 18A

2. The Banking (Corporate Governance) Regulations 2005 (G.N. No. S 583/2005) are amended by inserting, immediately after regulation 18, the following regulation:

“Removal of principal officers

18A.—(1) Where —

(a)

the Authority is satisfied that a chief executive officer, deputy chief executive officer or chief financial officer of a bank incorporated in Singapore (referred to in this regulation as officer) —

(i)	has wilfully contravened or wilfully caused the bank to contravene any provision of the Act;
(ii)	has, without reasonable excuse, failed to secure the compliance of the bank with any provision of the Act; or
(iii)	has failed to discharge any of the duties of his office; or

(b)

such officer has had —

(i)	execution against him in respect of a judgment debt returned unsatisfied in whole or in part; or
(ii)	a prohibition order under section 59 of the Financial Advisers Act (Cap. 110), section 35V of the Insurance Act (Cap. 142) or section 95 of the Securities and Futures Act (Cap. 289) made against him that remains in force,

the Authority may, if it thinks it necessary in the public interest or for the protection of depositors of the bank, by notice in writing to the bank, direct the bank to remove the officer from office or employment within such period as may be specified in the notice, and the bank shall comply with the notice.

(2) Before directing a bank to remove the officer under paragraph (1), the Authority shall —

(a)	give the bank and the officer notice in writing of its intention to do so; and
(b)	in the notice referred to in sub-paragraph (a), call upon the bank and the officer to show cause within such time as may be specified in the notice why the officer should not be removed.

(3) If the bank and the officer referred to in paragraph (1) —

(a)	fail to show cause within the time specified in a notice issued under paragraph (2) or within such extended period of time as the Authority may allow; or
(b)	fail to show sufficient cause,

the Authority may direct the bank to remove the officer under paragraph (1).

(4) Any bank which, or any officer of a bank who, is aggrieved by a direction of the Authority under paragraph (1) may, within 30 days of the direction, appeal in writing to the Minister whose decision shall be final.

(5) Any bank which fails to comply with a notice issued under paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.”.

Made this 4th day of June 2007.

HENG SWEE KEAT

Managing Director,
Monetary Authority of Singapore.

[PPD 09/2006; AG/LEG/SL/19/2003/1 Vol. 6]

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