Finance Companies (Exemption from sections 23(1)(b) and 25(2)) Notification 2005

Status:

Published in Subsidiary Legislation Supplement
on 30 Jun 2005

No. S 426

Finance Companies Act

(Chapter 108)

Finance Companies (Exemption from Sections 23 (1) (b) and 25 (2)) Notification 2005

In exercise of the powers conferred by sections 23(2) and 53(2) of the Finance Companies Act, the Monetary Authority of Singapore hereby makes the following Notification:

Citation and commencement

1. This Notification may be cited as the Finance Companies (Exemption from sections 23 (1)(b) and 25(2)) Notification 2005 and shall come into operation on 30th June 2005.

Definitions

2. In this Notification, unless the context otherwise requires —

“business customer” means any customer which is a company or a person registered to carry on business under the Business Registration Act (Cap. 32);

“company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50).

Exemptions

3.—(1) The Authority hereby exempts Hong Leong Finance Limited (referred to in this paragraph as the finance company) from —

(a)

section 23(1)(b) of the Act in respect of the business of entering into or offering to enter into, or facilitating the entering into by a person of, a contract or an arrangement the effect of which is to enable a business customer of the finance company to hedge, cover or change the amount of a liability or an entitlement —

(i)	from one foreign currency to another foreign currency or to Singapore dollars; or
(ii)	from Singapore dollars to a foreign currency; and

(b)

section 25(2) of the Act in respect of —

(i)	the business of underwriting the issue or sale of shares for any company which is currently listed, or which intends to be listed, on a securities exchange approved by the Authority under section 9 of the Securities and Futures Act (Cap. 289);
(ii)	the business of an insurance agent in respect of insurance policies relating to general business as defined in section 2(1)(b) of the Insurance Act (Cap. 142);
(iii)	the business of an insurance agent in respect of long-term accident and health policies as defined in paragraph 4D of the First Schedule to the Insurance Act; and
(iv)	the business of providing the type of financial advisory service specified in paragraph 4 of the Second Schedule to the Financial Advisers Act (Cap. 110).

(2) The exemption of the finance company under sub-paragraph (1) shall be subject to such conditions and restrictions as the Authority may specify in writing to the finance company.

Made this 24th day of June 2005.

HENG SWEE KEAT

Managing Director,
Monetary Authority of Singapore.

[FSG FC 07 Vol. 17; AG/LEG/SL/108/2003/1 Vol. 1]

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