Notice concerning recovery and resolution plans
51.—(1) The Authority may issue a notice to pertinent financial institutions requiring each pertinent financial institution to which a direction is issued under section 52(1) —(a)
to prepare, in the form and manner and containing the information specified in the notice, a plan to restore the financial strength and viability of the pertinent financial institution in the event it suffers financial pressure or stress (called in this section and section 52 a recovery plan);
(b)
to review and keep up-to-date its recovery plan, at a frequency specified in the direction;
(c)
to adopt various procedures in preparing its recovery plan, including the oversight of the process and endorsement of the plan;
(d)
to notify the Authority of the occurrence of any event that may necessitate the implementation of its recovery plan;
(e)
to maintain information to enable the pertinent financial institution to prepare, review and keep up‑to‑date its recovery plan, and to comply with any direction of the Authority under section 53;
(f)
to have in place a management information system that is necessary for the maintenance and production of the information mentioned in paragraph (e);
(g)
to ensure that the pertinent financial institution’s outsourcing arrangements for its critical functions and critical shared services will continue in the event it comes under resolution; and
(h)
to take such other action as in the Authority’s opinion will facilitate compliance with any notice or direction issued by the Authority under this Division, or the effective implementation of the recovery plan of the pertinent financial institution or a plan of the Authority under section 53.
(2) A notice under this section may make different provisions for different classes of pertinent financial institutions.
Direction for recovery plan and its implementation
52.—(1) The Authority may issue a direction to a pertinent financial institution —(a)
requiring the pertinent financial institution to comply with the requirements of a notice issued under section 51; and
(b)
specifying the dates for the submission of the recovery plan and the submission of any other document, and the frequency for the action mentioned in section 51(1)(b).
(2) The Authority may issue a further direction to a pertinent financial institution to which a direction was issued under subsection (1) —(a)
to make such amendment to the pertinent financial institution’s recovery plan as the Authority may reasonably require, including an amendment to address any deficiency in the plan; or
(b)
to remove any impediment to the implementation of the recovery plan.
(3) Without limiting subsection (2)(b), the direction in that provision may require the pertinent financial institution to make changes to its practices, organisation and structure (including its operational, legal and financial structures).
(4) The Authority may issue a further direction to a pertinent financial institution to which a direction was issued under subsection (1) —(a)
to implement a specified part of the pertinent financial institution’s recovery plan; and
(b)
to implement such other arrangements or measures as may be necessary to restore the pertinent financial institution’s financial strength and viability.
Resolution planning
53. The Authority may prepare plans for the orderly resolution of a pertinent financial institution, and may for that purpose issue a direction to the pertinent financial institution requiring the pertinent financial institution to provide, within the time and in the form and manner set out in the direction, any information or document that the Authority may reasonably require for that purpose.
Power to direct removal of impediments
54.—(1) This section applies if the Authority is of the opinion that an impediment exists to the orderly resolution of a pertinent financial institution in accordance with a plan of the Authority under section 53.
(2) The Authority may issue a direction to the pertinent financial institution, requiring the pertinent financial institution to take, within the time specified in the direction, measures specified in the direction for the purpose of addressing or removing the impediment.
(3) Without limiting subsection (2), the direction may require the pertinent financial institution to make changes to its practices, organisation and structure (including its operational, legal and financial structures).
Appeal against direction to remove impediment
55.—(1) A pertinent financial institution that is aggrieved by a direction issued to it under section 52(2)(b) or 54(2) may, within 30 days after receiving the direction, appeal to the Minister whose decision is final.
(2) An appeal may only be made if the direction requires the pertinent financial institution to make a change that will significantly affect its practices, organisation or operations.
(3) For the purposes of subsection (2), a change will significantly affect the practices, organisation or operations of a pertinent financial institution if it —(a)
changes any part of its legal or financial structure; or
(b)
satisfies such other criterion as may be prescribed by the Minister under section 191.
(4) If an appeal is lodged, the pertinent financial institution need not comply with the direction until the appeal is determined.
(5) The Minister may determine an appeal by confirming, varying or reversing the direction.
(6) If the Minister is satisfied that an appeal is made without reasonable ground, the Minister may, without calling for a reply from the Authority, but after giving the pertinent financial institution an opportunity to be heard, determine the appeal by confirming the direction.
Provisions concerning directions and notices under this Division
56.—(1) A direction or notice under this Division must be in writing.(2) It is not necessary to publish a direction or notice under this Division in the Gazette.
—(1) A direction or notice under this Division must be in writing.
(2) It is not necessary to publish a direction or notice under this Division in the Gazette.
Offences under this Division
57.—(1) A pertinent financial institution that does not comply with a direction or notice of the Authority under this Division shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
(2) A pertinent financial institution that, in purported compliance with a direction or notice under this Division, knowingly or recklessly provides to the Authority any information or document that is false or misleading in a material particular, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
