Securities and Futures (Offers of Investments) (Exemption from Requirement to Provide Covenant to Repurchase Units in Trust Deeds) Regulations 2005

Status:

Published in Subsidiary Legislation Supplement
on 28 Jan 2005

No. S 53

Securities and Futures Act

(Chapter 289)

Securities and Futures (Offers of Investments) (Exemption from Requirement to Provide Covenant to Repurchase Units in Trust Deeds) Regulations 2005

In exercise of the powers conferred by section 306(1) of the Securities and Futures Act, the Monetary Authority of Singapore hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Securities and Futures (Offers of Investments) (Exemption from Requirement to Provide Covenant to Repurchase Units in Trust Deeds) Regulations 2005 and shall come into operation on 28th January 2005.

Exemption

2.—(1) Subject to paragraph (2), the manager and the trustee of a specified scheme shall be exempt, in relation to the trust deed constituting the specified scheme, from the requirement under regulation 8(1)(a)(iv) of the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations (Rg 2) that the trust deed contains a covenant binding the manager to purchase, at the request of a participant of the specified scheme, from the participant units in the specified scheme which the participant has subscribed for or acquired and at a purchase price determined in accordance with the provisions of the trust deed.

(2) The exemption under paragraph (1) shall be subject to the following conditions:

(a)

the units in the specified scheme are listed for quotation on a securities exchange within 30 days after the prospectus in respect of the offer or invitation of those units is registered by the Authority;

(b)

the advertising and marketing materials (including the prospectus referred to in paragraph (a)) in relation to the specified scheme contain —

(i)	a statement to the effect that, for so long as the units in the specified scheme are listed for quotation on a securities exchange, the participants in the specified scheme shall have no right to request the manager of the specified scheme to redeem or purchase their units in the specified scheme; and
(ii)	a warning to prospective investors that the listing for quotation of the units in the specified scheme on a securities exchange does not guarantee a liquid market for those units; and

(c)

the trust deed referred to in paragraph (1) contains a covenant binding the manager of the specified scheme that if at any time the units in the specified scheme —

(i)	are suspended from trading for 60 days on all securities exchanges on which the units have been listed for quotation; or
(ii)	cease to be listed for quotation on all securities exchanges on which the units have been listed for quotation,

the manager shall, within 30 days after the occurrence of such event, offer to purchase from the participants in the specified scheme the units in the specified scheme in accordance with the provisions of the trust deed and in the Schedule.

(3) In this regulation and the Schedule, "specified scheme" means a collective investment scheme that invests only in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes, all or any of which units are listed for quotation on a securities exchange.

Made this 27th day of January 2005.

KOH YONG GUAN

Managing Director,
Monetary Authority of Singapore.

[SFD CFD 036/2004; AG/LEG/SL/289/2002/1 Vol. 11]

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