Trust Companies Act
(Chapter 336, Sections 15 and 82)
Trust Companies (Exemption) Regulations
Rg 1
G.N. No. S 833/2005

REVISED EDITION 2006
(30th November 2006)
[1st February 2006]
Citation
1.  These Regulations may be cited as the Trust Companies (Exemption) Regulations.
Definitions
2.  In these Regulations, unless the context otherwise requires —
“accounting corporation” means a company approved as an accounting corporation under the Accountants Act (Cap. 2);
[Deleted by S 447/2016 wef 30/09/2016]
“charity”, in relation to a private trust company, means any trust, foundation, company or other body established solely for a purpose recognised as charitable by the governing law of the trust in respect of which the private trust company provides trust business services;
“connected person”  —
(a)in relation to an individual, means —
(i)the persons listed in the Schedule; or
(ii)a firm or a corporation in which the individual or any of the persons listed in the Schedule has, in aggregate, control of not less than 20% of the voting power in the firm or corporation, whether such control is exercised individually or jointly;
(b)in relation to a firm, means another firm in which the first-mentioned firm has control of not less than 20% of the voting power in that other firm; and
(c)in relation to a corporation, means —
(i)an employee or a former employee of the corporation;
(ii)a director or former director of the corporation; or
(iii)another corporation in which the first-mentioned corporation or any of the persons mentioned in sub-paragraph (i) or (ii) has, in aggregate, control of not less than 20% of the voting power in that other corporation,
and a reference in these Regulations to a person connected to another person shall be construed accordingly;
“debenture” has the same meaning as in section 2 of the Securities and Futures Act (Cap. 289);
“foreign practitioner” means a foreign lawyer registered under section 36B of the Legal Profession Act (Cap. 161) who practises in a Singapore law practice, Joint Law Venture or Qualifying Foreign Law Practice;
[S 447/2016 wef 30/09/2016]
“Formal Law Alliance” has the same meaning as in section 2(1) of the Legal Profession Act;
[S 447/2016 wef 30/09/2016]
“introducing activities” means —
(a)introducing any client to any person in relation to the provision of any trust business services provided by the person; or
(b)recording the particulars of any client and forwarding such particulars to any person providing trust business services with the client’s consent;
[Deleted by S 447/2016 wef 30/09/2016]
“Joint Law Venture” has the same meaning as in section 2(1) of the Legal Profession Act;
[S 447/2016 wef 30/09/2016]
“overseas person” means a person —
(a)who is not resident, established or incorporated in Singapore; and
(b)who has no place of business in Singapore in or from which that person carries on trust business;
“practising solicitor” means a solicitor who has in force a practising certificate issued under section 25 of the Legal Profession Act, and who practises in a Singapore law practice, Joint Law Venture or Qualifying Foreign Law Practice;
[S 447/2016 wef 30/09/2016]
“private trust company” means a corporation —
(a)the purpose of which is solely to provide trust business services in respect of a specific trust or of specific trusts where —
(i)each settlor of such a trust is a connected person in relation to any other settlor of any other trust to which the corporation provides trust business services; and
(ii)each beneficiary of such a trust is a connected person in relation to the settlor of that trust or a charity; and
(b)that does not solicit trust business from, or provide trust business services to, the public;
“public accountant” has the same meaning as in the Accountants Act (Cap. 2);
[S 447/2016 wef 30/09/2016]
“Qualifying Foreign Law Practice” and “Singapore law practice” have the same meanings as in section 2(1) of the Legal Profession Act.
[S 447/2016 wef 30/09/2016]
Forms
3.—(1)  The forms to be used for the purposes of these Regulations are those set out at the Authority’s Internet website at http://www.mas.gov.sg (under “Trust Companies”), and any reference in these Regulations to a numbered form shall be construed as a reference to the current version of the form bearing the corresponding number in that website.
(2)  Where any provision of these Regulations provides for the lodgment of any document with the Authority, that document shall be lodged with the Authority in the relevant form and in the manner specified in the website referred to in paragraph (1), or in such other manner as the Authority may specify from time to time.
(3)  All forms used for the purposes of these Regulations shall be completed in the English language and in accordance with such directions as may be specified in the forms or by the Authority.
(4)  The Authority may refuse to accept any form that is not completed in accordance with this regulation.
(5)  Where strict compliance with any form is not possible, the Authority may allow for the necessary modifications to be made to that form, or for the requirements of that form to be complied with in such other manner as the Authority thinks fit.
(6)  Where the period of time within which a document required under the Act or these Regulations to be lodged with the Authority is not specified, the document shall be lodged within 14 days after the occurrence of the event to which the document relates.
Exemption
4.—(1)  For the purposes of section 15(1)(d) of the Act, the following persons shall be exempt from the requirement to hold a trust business licence in respect of the carrying on of trust business:
(a)any private trust company;
(b)any practising solicitor, foreign practitioner, Singapore law practice, Joint Law Venture, Formal Law Alliance or Qualifying Foreign Law Practice, in respect of —
(i)the provision of services in relation to the creation of an express trust;
(ii)the arrangement for any person to act as a trustee in respect of an express trust;
(iii)the provision, in relation to an express trust, of trust administration services —
(A)which are procedural and non‑discretionary; or
(B)which relate to the drafting of legal documentation, and the giving of professional legal advice in connection with the drafting of legal documentation; or
(iv)the carrying out of any trust business that is not described in sub‑paragraphs (i), (ii) and (iii), if all of the following conditions are complied with:
(A)the total amount of financial assets, excluding real property, settled by any client in one or more trusts in connection with the trust business does not exceed $2 million;
(B)the practising solicitor or foreign practitioner, or each practising solicitor or foreign practitioner in the Singapore law practice, Joint Law Venture, Formal Law Alliance or Qualifying Foreign Law Practice, as the case may be, has not more than 30 clients;
(C)each client of the practising solicitor or foreign practitioner, or each client of a practising solicitor or foreign practitioner in the Singapore law practice, Joint Law Venture, Formal Law Alliance or Qualifying Foreign Law Practice, as the case may be, is not also the client of another practising solicitor or foreign practitioner in the same Singapore law practice, Joint Law Venture, Formal Law Alliance or Qualifying Foreign Law Practice, as the case may be;
(D)the practising solicitor or foreign practitioner (through his Singapore law practice, Joint Law Venture or Qualifying Foreign Law Practice), or the Singapore law practice, Joint Law Venture, Formal Law Alliance or Qualifying Foreign Law Practice, as the case may be, notifies the Authority in Form 8 that he, or it, is carrying on such trust business within one month after the date of commencement of the trust business;
[S 447/2016 wef 30/09/2016]
(c)any public accountant who is registered under the Accountants Act (Cap. 2), or any accounting corporation which is approved under that Act, in respect of —
(i)the provision of services in relation to the creation of an express trust;
(ii)the arrangement for any person to act as a trustee in respect of an express trust; or
(iii)the provision, in relation to an express trust, of trust administration services which are procedural and non-discretionary or which relate to the drafting of accounting documentation and the giving of professional accountancy advice in connection therewith;
[S 447/2016 wef 30/09/2016]
(d)any overseas person, in respect of —
(i)the provision of services in relation to the creation of an express trust; or
(ii)the arrangement for any person to act as a trustee in respect of an express trust,
where the carrying on of such activity is effected under an arrangement between the overseas person and —
(A)a licensed trust company; or
(B)a person who is an exempt person under section 15 (1)(a) or (b) of the Act;
(e)any person, in respect of —
(i)the provision of services in relation to the creation of an express trust; or
(ii)the arrangement for any person to act as a trustee in respect of an express trust,
where the carrying on of such activity is effected under an arrangement between the person and a licensed trust company;
(f)any person engaging in trust business if that trust business is in relation to a trust that is created or proposed to be created in connection with the issuance of debentures;
(g)any trustee of any collective investment scheme that is approved under the Securities and Futures Act (Cap. 289) in respect of the provision of any trust business in connection with any collective investment scheme authorised under that Act;
(h)the Central Depository (Pte) Limited in respect of securities held by it on trust for its depositors pursuant to section 81SI of the Securities and Futures Act;
[S 447/2016 wef 30/09/2016]
(i)any person carrying out introducing activities;
(j)any direct life insurer who is registered under the Insurance Act (Cap. 142), in respect of —
(i)the provision of services in relation to the creation of an express trust;
(ii)the arrangement for any person to act as a trustee in respect of an express trust; or
(iii)the provision, in relation to an express trust, of trust administration services which are procedural and non-discretionary,
[S 447/2016 wef 30/09/2016]
where the carrying out of such activity is in connection with any life insurance policy issued by the direct life insurer; and
(k)any person engaging in trust business if that trust business is in relation to a trust that is created or proposed to be created to hold or administer any collateral given to secure any liability in connection with the granting of any credit facility, advance or loan by —
(i)that person together with any other person; or
(ii)any other person.
(2)  A private trust company shall engage a licensed trust company to carry out trust administration services for the purposes of conducting the necessary checks to comply with any written direction issued by the Authority on the prevention of money laundering or countering the financing of terrorism.
(3)  Any private trust company which contravenes paragraph (2) shall be guilty of an offence.
Requirements for exempt persons
5.—(1)  Sections 40 to 46, 61 and 62 of the Act and regulation 16 of the Trust Companies Regulations (Rg 4) shall apply, with the necessary modifications, to the exempt persons referred to in section 15 of the Act and in regulation 4.
(2)  Where any of the requirements under sections 40 to 46, 61 and 62 of the Act and regulation 16 of the Trust Companies Regulations is inconsistent with any requirement under the Accountants Act (Cap. 2), the Banking Act (Cap. 19), the Insurance Act (Cap. 142), the Monetary Authority of Singapore Act (Cap. 186), the Legal Profession Act (Cap. 161) or the Securities and Futures Act (Cap. 289), the requirement under the Accountants Act, the Banking Act, the Insurance Act, the Monetary Authority of Singapore Act, the Legal Profession Act or the Securities and Futures Act, as the case may be, shall prevail.
(3)  The notification in writing to be given to the Authority under section 15 (2)(a) or (3) (a) of the Act by a person who is exempt under section 15 (1)(a) or (b) of the Act shall be in Form 8.
(4)  A person who is exempt under section 15 (1)(a) or (b) of the Act shall, whenever there is any change in its relevant particulars, lodge with the Authority a notice in Form 9 to inform the Authority of the change not later than 14 days after the date of the change.
(5)  The notification in writing to be given to the Authority under section 15 (2)(b) or (3)(b) of the Act by a person who is exempt under section 15 (1)(a) or (b) of the Act shall be in Form 10.
(6)  A person who is exempt under regulation 4(1)(b)(iv) shall —
(a)lodge with the Authority a statement in Form 6, in respect of each calendar year or such other period as the Authority may allow, within 60 days after the end of each calendar year;
(b)whenever there is any change in his relevant particulars, lodge with the Authority a notice in Form 9 to inform the Authority of the change not later than 14 days after the date of the change; and
(c)upon the cessation of any trust business in respect of which that person has been so exempt, lodge with the Authority a notice in Form 10 to inform the Authority of the cessation not later than 14 days after the cessation has taken place.
(7)  For the purposes of paragraph (6), where the exempt person is a practising solicitor or foreign practitioner, the practising solicitor or foreign practitioner must lodge the relevant Forms with the Authority through his Singapore law practice, Joint Law Venture or Qualifying Foreign Law Practice.
[S 447/2016 wef 30/09/2016]
(8)  Any person who contravenes paragraph (4) or (6) shall be guilty of an offence.
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