§ 6 — Interpretation of this Part

6. In this Part, unless the context otherwise requires —“appointee”, in relation to a financial institution, or any other person who carries on a business or an activity, provides a relevant service or performs a relevant function —(a)

means a person, by whatever name called, in the employment of, or acting for, or by arrangement with, the financial institution or other person, who carries on, provides or performs for or on behalf of the financial institution or other person, any activity, business, service or relevant function, whether or not the person is remunerated, and whether the person’s remuneration, if any, is by way of salary, wages, commission or otherwise; and

(b)

includes any officer of the financial institution or other person who carries on, provides or performs for or on behalf of the financial institution or other person, any activity, business, service or relevant function, whether or not the officer is remunerated, and whether the officer’s remuneration, if any, is by way of salary, wages, commission or otherwise,

but does not include a representative;

“company” has the meaning given by section 4(1) of the Companies Act 1967;

“critical system”, in relation to a financial institution, means a system, the failure of which will —(a)

cause significant disruption to the operations of the financial institution; or

(b)

materially and adversely impact any service that the financial institution is providing to its customers;

“critical system administration” refers to the maintenance or operation of a critical system of a financial institution by persons granted access to the system;

“digital payment token” has the meaning given by section 2(1) of the Payment Services Act 2019;

“digital payment token instrument” has the meaning given by section 2(1) of the Payment Services Act 2019;[Act 18 of 2022 wef 30/06/2025]

“director” includes —(a)

any person occupying the position of director of a corporation by whatever name called;

(b)

a person in accordance with whose directions or instructions the directors of a corporation are accustomed to act; and

(c)

an alternate or substitute director;

“handling of funds or assets” means any of the following: (a)

the safeguarding or administration of funds or assets belonging to a customer of a financial institution;

(b)

the safeguarding or administration of funds or assets belonging to a financial institution;

(c)

the safeguarding of a digital payment token belonging to —(i)

a customer of a financial institution; or

(ii)

a financial institution, where the financial institution has control over the digital payment token;

(d)

the carrying out of an instruction relating to a digital payment token for —(i)

a customer of a financial institution; or

(ii)

a financial institution’s own account, where the financial institution has control over the digital payment token;

(e)

the safeguarding of a digital payment token instrument belonging to —(i)

a customer of a financial institution; or

(ii)

a financial institution, where the financial institution has control over one or more digital payment tokens associated with the digital payment token instrument;

(f)

the carrying out of an instruction relating to one or more digital payment tokens associated with a digital payment token instrument for —(i)

a customer of a financial institution; or

(ii)

a financial institution’s own account, where the financial institution has control over the digital payment token instrument;

“officer”, in relation to a corporation, includes —(a)

a director, a secretary or an employee of the corporation;

(b)

a receiver or manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and

(c)

the liquidator of the corporation appointed in a voluntary winding up;

“relevant function” means any one or more of the following functions in a financial institution, in relation to an activity, a business or a service, the conduct of which is regulated or authorised by the Authority:(a)

handling of funds or assets;

(b)

risk taking;

(c)

risk management and control;

(d)

critical system administration;

(e)

any other function critical to the integrity or functioning of financial institutions which the Authority may prescribe for the purpose of protecting trust or deterring misconduct in the financial industry;

“relevant service”, in relation to a financial institution —(a)

means any service which the financial institution obtains or receives from another person; but

(b)

does not include —(i)

a service provided in the course of employment by an employee of the financial institution; or

(ii)

a service provided by a director, a representative or an officer of that financial institution in the course of the director’s, representative’s or officer’s appointment;

“representative” —(a)

in relation to a financial adviser licensed under the Financial Advisers Act 2001, has the meaning given by section 2(1) of that Act; and

(b)

in relation to an authorised benchmark administrator, exempt benchmark administrator, authorised benchmark submitter, exempt benchmark submitter, designated benchmark submitter, or a person who carries on business in any regulated activity, under the Securities and Futures Act 2001, has the meaning given by section 2(1) of that Act;

“risk management and control” means any of the following:(a)

the identification, assessment, monitoring and reporting of specified risks arising from a financial institution’s operations;

(b)

the development and implementation of policies and procedures intended to ensure compliance by a financial institution with the relevant legal and regulatory requirements in the jurisdictions that the financial institution conducts business in;

(c)

the monitoring of, auditing of or reporting on compliance with policies and procedures intended to ensure compliance by a financial institution with the relevant legal and regulatory requirements in the jurisdictions that the financial institution conducts business in;

“risk taking” means the taking of actions that result in a financial institution undertaking any specified risk in the course of the business of the financial institution;

“share” has the meaning given by section 4(1) of the Companies Act 1967;

“specified risk” means credit risk, asset risk, liquidity risk, market risk, operational risk, technology risk, market conduct risk, money laundering risk, terrorism financing risk, legal risk, reputational risk, regulatory risk, or any other risks as may be prescribed by the Authority;

“system” means any hardware, software, network or other information technology component which is part of an information technology infrastructure;

“treasury share” —(a)

in relation to a company, has the meaning given by section 4(1) of the Companies Act 1967; and

(b)

in relation to a corporation (other than a company), means any share equivalent to a treasury share in a company;

“voting share” has the meaning given by section 4(1) of the Companies Act 1967.