§ 4 — Power to approve financial institutions and control their operations

4.—(1) The Authority may require any relevant financial institution which operations are considered by the Authority to affect —(a)

monetary stability and credit and exchange conditions in Singapore;

(b)

the development of Singapore as a financial centre; or

(c)

the financial situation of Singapore generally,

to be approved by the Authority for the purpose of carrying on business in Singapore.

(2) On an application in writing for approval under subsection (1), the Authority may —(a)

grant approval;

(b)

grant approval subject to such conditions as the Authority sees fit to impose; or

(c)

refuse to grant approval without any obligation to give reasons for its refusal.

(3) Without limiting section 3, the Authority may, if the Authority thinks it necessary or expedient in the public interest, give directions either of a general or special nature to any relevant financial institution approved under subsection (2) in relation to —(a)

the range of activities that the relevant financial institution may engage in or the range of services that the relevant financial institution may provide;

(b)

the terms and conditions under which the relevant financial institution may carry on a particular activity or provide a particular service; and

(c)

all matters in which it appears to the Authority that —(i)

the activities that the relevant financial institution engages in; or

(ii)

the services that the relevant financial institution provides,

affect or are likely to affect —

(iii)

monetary or economic policy;

(iv)

credit conditions; or

(v)

the development of Singapore as a financial centre,

and the relevant financial institution must comply with the directions.

(4) The Authority may, from time to time, issue guidelines to and impose conditions of operation on any relevant financial institution as the Authority thinks fit and may amend or revise those guidelines and conditions.

(5) The Authority may withdraw approval of a relevant financial institution if it appears to the Authority that —(a)

any information required to be provided in connection with an application for approval was false or misleading in a material particular;

(b)

the relevant financial institution has failed to comply with any direction or guideline issued or condition attached to an approval or conditions of operation imposed under this section;

(c)

the relevant financial institution has conducted its affairs so as to threaten the interests of its depositors or customers; or

(d)

it is in the public interest to do so.

(6) Any relevant financial institution that is aggrieved by a decision of the Authority to withdraw approval may appeal against the decision to the Minister whose decision is final.

(7) A relevant financial institution, required under subsection (1) to obtain the Authority’s approval, that carries on its business without first obtaining that approval shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $3,000 for every day or part of a day during which the offence continues after conviction.

(8) A relevant financial institution that fails to comply with any direction given under subsection (3) or any condition subject to which an approval is granted under subsection (2)(b) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day or part of a day during which the offence continues after conviction.

(9) It is not necessary to publish any direction given under this section in the Gazette.

(10) In this section, “relevant financial institution” means any financial institution or class of financial institutions other than —(a)

a financial institution or class of financial institutions licensed, approved, authorised, designated, recognised, registered or otherwise regulated by the Authority under this Act or any other MAS scheduled Act; or

(b)

a financial institution or class of financial institutions exempted from being licensed, approved, authorised, designated, recognised, registered or regulated by the Authority under this Act or any other MAS scheduled Act.

—(1) The Authority may require any relevant financial institution which operations are considered by the Authority to affect —(a)

monetary stability and credit and exchange conditions in Singapore;

(b)

the development of Singapore as a financial centre; or

(c)

the financial situation of Singapore generally,

to be approved by the Authority for the purpose of carrying on business in Singapore.

(2) On an application in writing for approval under subsection (1), the Authority may —(a)

grant approval;

(b)

grant approval subject to such conditions as the Authority sees fit to impose; or

(c)

refuse to grant approval without any obligation to give reasons for its refusal.

(3) Without limiting section 3, the Authority may, if the Authority thinks it necessary or expedient in the public interest, give directions either of a general or special nature to any relevant financial institution approved under subsection (2) in relation to —(a)

the range of activities that the relevant financial institution may engage in or the range of services that the relevant financial institution may provide;

(b)

the terms and conditions under which the relevant financial institution may carry on a particular activity or provide a particular service; and

(c)

all matters in which it appears to the Authority that —(i)

the activities that the relevant financial institution engages in; or

(ii)

the services that the relevant financial institution provides,

affect or are likely to affect —

(iii)

monetary or economic policy;

(iv)

credit conditions; or

(v)

the development of Singapore as a financial centre,

and the relevant financial institution must comply with the directions.

(4) The Authority may, from time to time, issue guidelines to and impose conditions of operation on any relevant financial institution as the Authority thinks fit and may amend or revise those guidelines and conditions.

(5) The Authority may withdraw approval of a relevant financial institution if it appears to the Authority that —(a)

any information required to be provided in connection with an application for approval was false or misleading in a material particular;

(b)

the relevant financial institution has failed to comply with any direction or guideline issued or condition attached to an approval or conditions of operation imposed under this section;

(c)

the relevant financial institution has conducted its affairs so as to threaten the interests of its depositors or customers; or

(d)

it is in the public interest to do so.

(6) Any relevant financial institution that is aggrieved by a decision of the Authority to withdraw approval may appeal against the decision to the Minister whose decision is final.

(7) A relevant financial institution, required under subsection (1) to obtain the Authority’s approval, that carries on its business without first obtaining that approval shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $3,000 for every day or part of a day during which the offence continues after conviction.

(8) A relevant financial institution that fails to comply with any direction given under subsection (3) or any condition subject to which an approval is granted under subsection (2)(b) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day or part of a day during which the offence continues after conviction.

(9) It is not necessary to publish any direction given under this section in the Gazette.

(10) In this section, “relevant financial institution” means any financial institution or class of financial institutions other than —(a)

a financial institution or class of financial institutions licensed, approved, authorised, designated, recognised, registered or otherwise regulated by the Authority under this Act or any other MAS scheduled Act; or

(b)

a financial institution or class of financial institutions exempted from being licensed, approved, authorised, designated, recognised, registered or regulated by the Authority under this Act or any other MAS scheduled Act.