PART III | FINANCIAL RESOURCES REQUIREMENT |
[S 192/2013 wef 03/04/2013] 5. In this Part, a reference to the holder of a licence excludes —| (a) | a holder of a licence who only holds a licence to provide credit rating services; and | | (b) | a holder of a licence who is a venture capital fund manager. [S 588/2017 wef 20/10/2017] |
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| Written directions to maintain financial resources in Singapore |
| 5A.—(1) The Authority may, from time to time, issue written directions to any holder of a licence or class of such holders, to require the holder or each holder of that class to maintain and hold such of its financial resources as the written direction may specify in Singapore, and the holder shall comply with such written direction. [S 192/2013 wef 03/04/2013] (2) The written direction referred to in paragraph (1) may specify, in respect of the financial resources of any holder or class of holders —| (a) | the items that are to be maintained and held in Singapore; [S 192/2013 wef 03/04/2013] | | (b) | the minimum value of any such items to be maintained and held in Singapore; and | | (c) | the method of valuation of such items maintained and held in Singapore, including any deductions to be made in respect of those items. [S 101/2008 wef 27/02/2008] |
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| Financial resources of holder of licence not to fall below total risk requirement |
6.—(1) The holder of a licence shall not cause or permit —| (a) | where it is incorporated in Singapore, its financial resources; or | | (b) | where it is a foreign company, its adjusted net head office funds, |
| to fall below its total risk requirement. |
(2) The holder of a licence shall compute its financial resources (if applicable) in accordance with regulation 2A and its total risk requirement in accordance with paragraph (2B) —| (a) | at such time and frequency as may be specified by the Authority by notice in writing; or | | (b) | where the Authority does not so specify, at such time and frequency as may be necessary for determining whether at any time its financial resources falls below its total risk requirement. [S 192/2013 wef 03/04/2013] |
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(2A) The holder of a licence shall compute its adjusted net head office funds (if applicable) in accordance with the definition of “adjusted net head office funds” in regulation 2(1) and its total risk requirement in accordance with paragraph (2B) —| (a) | at such time and frequency as may be specified by the Authority by notice in writing; or | | (b) | where the Authority does not so specify, at such time and frequency as may be necessary for determining whether at any time its adjusted net head office funds falls below its total risk requirement. [S 192/2013 wef 03/04/2013] |
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| (2B) The holder of a licence shall compute its total risk requirement in accordance with the MAS notice that applies to him, any notice referred to in regulation 2C given to the holder, or both (whichever is applicable). [S 192/2013 wef 03/04/2013] |
(3) If the holder of a licence fails to comply with paragraph (1), (2) or (2A) or becomes aware that it will fail to comply with that paragraph, the holder shall immediately notify —| (a) | the Authority; and | | (b) | the approved exchange or approved clearing house of which the holder is a member (if applicable). [S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] [S 192/2013 wef 03/04/2013] |
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| (4) If the Authority is notified by the holder of a licence under paragraph (3) or becomes aware that the holder has failed to comply with paragraph (1), (2) or (2A), the Authority may revoke the licence of the holder under section 95(2) of the Act. [S 714/2010 wef 26/11/2010] [S 192/2013 wef 03/04/2013] |
| (5) [Deleted by S 668/2018 wef 08/10/2018] |
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| Where financial resources of holder of licence fall below 120% of total risk requirement |
7.—(1) The holder of a licence shall immediately notify the Authority, and the approved exchange or approved clearing house of which the holder is a member (if applicable), if —| (a) | in the case where the holder is incorporated in Singapore, its financial resources; or | | (b) | in the case where the holder is a foreign company, its adjusted net head office funds, |
| fall below 120% of its total risk requirement. |
[S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] (2) If the Authority is notified by the holder under paragraph (1) or becomes aware that the financial resources or adjusted net head office funds (as the case may be) of the holder have fallen below 120% of its total risk requirement, the Authority may —| (a) | direct the holder to immediately do one or more of the following:| (i) | cease any increase in positions, product financing, funds accepted for management and assets accepted for custody for any account carried by the holder; [S 668/2018 wef 08/10/2018] | | (ii) | transfer all or part of any customer’s positions, margins, collateral, assets and accounts to one or more other holders of licences; | | (iii) | operate its business in such manner and on such conditions as the Authority may impose; | | (iv) | cease carrying on business in any or all of the regulated activities permitted under its licence until such time that the holder has demonstrated that its financial resources or adjusted net head office funds (as the case may be) are not less than 120% of the total risk requirement of the holder, except that the holder may continue trading for the purposes of liquidation only or if otherwise directed by the Authority; or |
| | (b) | revoke the licence of the holder under section 95(2) of the Act. [S 192/2013 wef 03/04/2013] |
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(3) Subject to paragraph (4), if an approved exchange or approved clearing house is notified by the holder of a licence under paragraph (1) or becomes aware that the financial resources or adjusted net head office funds (as the case may be) of the holder have fallen below 120% of the total risk requirement of the holder for 5 consecutive business days or more, the approved exchange or approved clearing house (as the case may be) may direct the holder to immediately do one or more of the following, and shall immediately notify the Authority of such direction:| (a) | submit the statements referred to in regulation 27(1) to the approved exchange or approved clearing house (as the case may be) on a weekly basis or at such other interval as may be determined by the approved exchange or approved clearing house, until the financial resources or adjusted net head office funds of the holder are not less than 120% of the total risk requirement of the holder for 8 consecutive weeks or such other period as may be determined by the approved exchange or approved clearing house; [S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] | | (b) | cease any increase in positions, product financing, funds accepted for management and assets accepted for custody for any account carried by the holder; [S 668/2018 wef 08/10/2018] | | (c) | transfer all or part of any customer’s positions, margins, collateral, assets and accounts to one or more other holders of licences; | | (d) | operate its business in such manner and on such conditions as the approved exchange or approved clearing house (as the case may be) may impose. [S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] |
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(4) The Authority may —| (a) | review, affirm, modify or set aside any direction issued by an approved exchange or approved clearing house to the holder of a licence under paragraph (3); or [S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] | | (b) | direct the holder to cease carrying on business in any or all of the regulated activities permitted under its licence until such time that the holder has demonstrated that its financial resources or adjusted net head office funds (as the case may be) are not less than 120% of the total risk requirement of the holder, except that the holder may continue trading for the purposes of liquidation only or unless otherwise directed by the Authority. |
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| (4A) Where an approved exchange or approved clearing house informs the Authority that the holder of a licence has failed to comply with any direction given to it under paragraph (3), the Authority may, if it thinks necessary or expedient, direct the holder of the licence to comply with that direction, within such time as may be specified by the Authority and subject to such modifications that the Authority may make to the direction. [S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] |
(5) Any statement required to be submitted under paragraph (3)(a) shall be —| (a) | signed by a director of the holder of a licence or such other person as the Authority may allow; and | | (b) | lodged with the approved exchange or approved clearing house of which the holder is a member not later than one business day after the end of the week or other interval referred to in paragraph (3)(a). [S 677/2006 wef 20/12/2006] [S 463/2013 wef 01/08/2013] |
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| (6) The Authority may revoke the licence of the holder under section 95(2) of the Act if the holder fails to comply with a direction issued to it under paragraph (2)(a), (3), (4)(b) or (4A). [S 677/2006 wef 20/12/2006] [S 714/2010 wef 26/11/2010] [S 192/2013 wef 03/04/2013] |
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| [Deleted by S 192/2013 wef 03/04/2013] |
| [Deleted by S 192/2013 wef 03/04/2013] |
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