3.—(1) The Authority hereby exempts Hong Leong Finance Limited (referred to in these Regulations as HLF) from —| (a) | sections 23(1)(a) and 25(2) of the Act in respect of the business of opening current accounts with a facility for —| (i) | the issuance of cheques; | | (ii) | the payment of cheques drawn on the finance company; and | | (iii) | the collection of cheques drawn, |
| by a business customer of HLF which has an existing credit facility with HLF; |
| | (b) | 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; |
| | (c) | section 23(1)(b) and (c) of the Act in respect of the following activities:| (i) | financing foreign currency denominated securities; and | | (ii) | financing foreign currency denominated invoices under factoring and accounts receivable financing; |
| | (d) | section 23(1)(f)(i) of the Act in respect of unsecured advances, unsecured loans or unsecured credit facilities, subject to the condition that HLF shall not grant unsecured advances, unsecured loans or unsecured credit facilities to any person or body of persons, whether incorporated or not, which in the aggregate and outstanding at any one time exceeds 0.5% of the capital funds of HLF; and | | (e) | section 25(2) of the Act in respect of the business of —| (i) | providing corporate financial advisory services; | | (ii) | issuing corporate purchasing cards; | | (iii) | marketing, or selling units in, any collective investment scheme which is not managed by HLF; | | (iv) | underwriting the issue or sale of shares for any company which is currently listed, or which intends to be listed, on a securities exchange; | | (v) | 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); | | (vi) | 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; | | (vii) | providing the type of financial advisory service specified in paragraph 4 of the Second Schedule to the Financial Advisers Act (Cap. 110); | | (viii) | advising others, either directly or through publications or writings, and whether in electronic, print or other form, concerning any investment product; | | (ix) | advising others by issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning any investment product; and | | (x) | distributing and marketing any investment product. |
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(2) The exemption in paragraph (1)(d) shall not apply to unsecured advances, unsecured loans or unsecured credit facilities granted by HLF to the following persons:| (a) | any of its directors, whether those advances, loans or credit facilities are obtained by its directors jointly or severally; | | (b) | a firm in which HLF or any of its directors has an interest as a partner, manager or agent, or to any individual of whom or firm of which any of its directors is a guarantor; | | (c) | a company in which any of its directors, whether legally or beneficially, owns more than 50% of the issued capital or in which any of its directors controls the composition of the board of directors, but excluding a public company the securities of which are listed on a securities exchange, and any subsidiary of such a public company; or | | (d) | any corporation, other than a bank, that is deemed to be related to HLF by virtue of section 6 of the Companies Act (Cap. 50). |
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