Law of insolvency in other jurisdictions
14. Despite any written law or rule of law, a court is not to recognise or give effect to —(a)
an order of a court exercising jurisdiction under the law of insolvency in a place outside Singapore; or
(b)
an act of a person appointed in a place outside Singapore to perform a function under the law of insolvency there,
insofar as the making of the order or doing of the act would be prohibited under this Act for a court in Singapore or a relevant office holder.
Preservation of rights, etc.
15.—(1) Except to the extent that it expressly provides, this Act does not operate to limit, restrict or otherwise affect —(a)
any right, title, interest, privilege, obligation or liability of a person resulting from the underlying transaction in respect of a transfer order which has been entered into a designated system; or
(b)
any investigation, legal proceeding or remedy in respect of any such right, title, interest, privilege, obligation or liability.
(2) Nothing in subsection (1) is to be construed to require —(a)
the unwinding of any netting done by the operator of a designated system, whether pursuant to its default arrangements or otherwise;
(b)
the revocation of any transfer order given by a participant which is entered into a designated system; or
(c)
the reversal of a payment or settlement made under the Rules of a designated system.[4/2018]
Provision of information to Authority
15A.—(1) If the Authority is of the opinion that it requires any information or statement for the proper discharge of its functions under this Act, the Authority may by written notice, require any of the following persons (each called in this section a relevant person) to provide to the Authority that information or statement within such time and in such manner as the Authority may specify:(a)
any participant;
(b)
any operator of a designated system, or any person acting on behalf of that operator;
(c)
any settlement institution of a designated system.[4/2018]
(2) Any relevant person to whom the Authority issues a notice under subsection (1) must comply with the notice.[4/2018]
(3) Any relevant person who without reasonable excuse contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.[4/2018]
(4) Any relevant person who in purported compliance with a notice under subsection (1) furnishes to the Authority any information or statement that is false or misleading in a material particular, and that the relevant person knows is false or misleading in a material particular, or is reckless as to whether it is so, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000.[4/2018]
(5) Where a relevant person is guilty of an offence under subsection (3) or (4), any individual who is charged with the duty of securing the relevant person’s compliance with the applicable subsection, and is in a position to discharge that duty, shall also be guilty of an offence and shall be liable on conviction —(a)
if the individual committed the offence wilfully, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 12 months or to both; or
(b)
if the individual did not commit the offence wilfully, to a fine not exceeding $125,000.[4/2018]
(6) Any relevant person who fails to take reasonable care to ensure the accuracy of any information or statement furnished to the Authority in purported compliance with a notice under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $15,000.[4/2018]
Obligation to notify Authority of certain events
15B.—(1) Subject to subsection (2), a person (being a participant, an operator, a settlement institution or a collateral holder of a designated system) must notify the Authority of the occurrence of any event mentioned in the following paragraphs, as soon as practicable after the occurrence of that event:(a)
the person becomes, or is likely to become, insolvent or unable to meet the person’s obligations (whether financial, statutory, contractual or otherwise);
(b)
any other event in relation to the person, being an event that is prescribed by regulations made under section 20 or specified in written directions issued under section 20A.[4/2018]
(2) The person need not notify the Authority under subsection (1) of the occurrence of an event mentioned in subsection (1)(a), if the person has already notified the Authority, under any other written law administered by the Authority, of the occurrence of that event.[4/2018]
(3) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $200,000.[4/2018]
Obligation to notify operator of designated system of insolvency
16.—(1) A participant must notify the operator of a designated system as soon as practicable after the occurrence of any of the following events:(a)
the making of an order for bankruptcy, judicial management or winding up of the participant;
(b)
the passing of a resolution for the participant to be placed under the judicial management of a judicial manager under section 94(11) of the Insolvency, Restructuring and Dissolution Act 2018;
(c)
the passing of a resolution for the voluntary winding up of the participant.[40/2018]
(2) Any participant who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
(3) A participant does not contravene subsection (1) if —(a)
the participant took reasonable steps to comply with that subsection; or
(b)
the operator of the designated system was already aware of the relevant event referred to in subsection (1)(a), (b) or (c) by the time the participant was required to notify the operator under that subsection.[40/2018]
Composition of offences
17.—(1) The Authority may compound any offence under this Act that is prescribed as a compoundable offence by collecting from any person reasonably suspected of having committed the offence a sum of money not exceeding half of the amount of the maximum fine prescribed for that offence.[4/2018]
(2) On payment of the sum of money, no further proceedings may be taken against that person in respect of the offence.
(3) The Authority may make regulations to prescribe the offences which may be compounded.
(4) All sums collected under this section must be paid into the Consolidated Fund.[4/2018]
Offences by corporations
17A.—(1) Where, in a proceeding for an offence under this Act, it is necessary to prove the state of mind of a corporation in relation to a particular conduct, evidence that —(a)
an officer, employee or agent of the corporation engaged in that conduct within the scope of his or her actual or apparent authority; and
(b)
the officer, employee or agent had that state of mind,
is evidence that the corporation had that state of mind.
[4/2018]
(2) Where a corporation commits an offence under this Act, a person —(a)
who is —(i)
an officer of the corporation; or
(ii)
an individual involved in the management of the corporation and in a position to influence the conduct of the corporation in relation to the commission of the offence; and
(b)
who —(i)
consented or connived, or conspired with others, to effect the commission of the offence;
(ii)
is in any other way, whether by act or omission, knowingly concerned in, or is party to, the commission of the offence by the corporation; or
(iii)
knew or ought reasonably to have known that the offence by the corporation (or an offence of the same type) would be or is being committed, and failed to take all reasonable steps to prevent or stop the commission of that offence,
shall be guilty of the same offence as is the corporation, and shall be liable on conviction to be punished accordingly.
[4/2018]
(3) A person mentioned in subsection (2) may rely on a defence that would be available to the corporation if it were charged with the offence with which the person is charged and, in doing so, the person bears the same burden of proof that the corporation would bear.[4/2018]
(4) To avoid doubt, this section does not affect the application of —(a)
Chapters 5 and 5A of the Penal Code 1871; or
(b)
the Evidence Act 1893 or any other law or practice regarding the admissibility of evidence.[4/2018]
(5) To avoid doubt, subsection (2) also does not affect the liability of the corporation for an offence under this Act, and applies whether or not the corporation is convicted of the offence.[4/2018]
(6) In this section —“corporation” includes a limited liability partnership within the meaning of section 2(1) of the Limited Liability Partnerships Act 2005;
“officer”, in relation to a corporation, means any director, partner, chief executive, manager, secretary or other similar officer of the corporation, and includes —(a)
any person purporting to act in any such capacity; and
(b)
for a corporation whose affairs are managed by its members, any of those members as if the member were a director of the corporation;
“state of mind” of a person includes —(a)
the knowledge, intention, opinion, belief or purpose of the person; and
(b)
the person’s reasons for the intention, opinion, belief or purpose.[4/2018]
Offences by unincorporated associations or partnerships
17B.—(1) Where, in a proceeding for an offence under this Act, it is necessary to prove the state of mind of an unincorporated association or a partnership in relation to a particular conduct, evidence that —(a)
an employee or agent of the unincorporated association or the partnership engaged in that conduct within the scope of his or her actual or apparent authority; and
(b)
the employee or agent had that state of mind,
is evidence that the unincorporated association or partnership had that state of mind.
[4/2018]
(2) Where an unincorporated association or a partnership commits an offence under this Act, a person —(a)
who is —(i)
an officer of the unincorporated association or a member of its governing body;
(ii)
a partner in the partnership; or
(iii)
an individual involved in the management of the unincorporated association or partnership and in a position to influence the conduct of the unincorporated association or partnership in relation to the commission of the offence; and
(b)
who —(i)
consented or connived, or conspired with others, to effect the commission of the offence;
(ii)
is in any other way, whether by act or omission, knowingly concerned in, or is party to, the commission of the offence by the unincorporated association or partnership; or
(iii)
knew or ought reasonably to have known that the offence by the unincorporated association or partnership (or an offence of the same type) would be or is being committed, and failed to take all reasonable steps to prevent or stop the commission of that offence,
shall be guilty of the same offence as is the unincorporated association or partnership, and shall be liable on conviction to be punished accordingly.
[4/2018]
(3) A person mentioned in subsection (2) may rely on a defence that would be available to the unincorporated association or partnership if it were charged with the offence with which the person is charged and, in doing so, the person bears the same burden of proof that the unincorporated association or partnership would bear.[4/2018]
(4) To avoid doubt, this section does not affect the application of —(a)
Chapters 5 and 5A of the Penal Code 1871; or
(b)
the Evidence Act 1893 or any other law or practice regarding the admissibility of evidence.[4/2018]
(5) To avoid doubt, subsection (2) also does not affect the liability of an unincorporated association or a partnership for an offence under this Act, and applies whether or not the unincorporated association or partnership is convicted of the offence.[4/2018]
(6) In this section —“officer”, in relation to an unincorporated association (other than a partnership), means the president, the secretary, or any member of the committee of the unincorporated association, and includes —(a)
any person holding a position analogous to that of president, secretary or member of a committee of the unincorporated association; and
(b)
any person purporting to act in any such capacity;
“partner” includes a person purporting to act as a partner;
“state of mind” of a person includes —(a)
the knowledge, intention, opinion, belief or purpose of the person; and
(b)
the person’s reasons for the intention, opinion, belief or purpose.[4/2018]
Protection from liability
17C.—(1) No liability shall be incurred by a relevant person for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the execution or purported execution of any function, duty or power of that relevant person under this Act or under the Rules of a designated system.[4/2018]
(2) In this section —“officer”, in relation to an operator, a settlement institution or a collateral holder of a designated system, means any director, partner, chief executive, manager, secretary or other similar officer of that operator, settlement institution or collateral holder;
“relevant person” means —(a)
an operator, a settlement institution or a collateral holder of a designated system; or
(b)
any officer or employee of an operator, a settlement institution or a collateral holder of a designated system.[4/2018]
Jurisdiction of District Court
18. Despite any provision to the contrary in the Criminal Procedure Code 2010, a District Court has jurisdiction to try any offence under this Act and has power to impose the full penalty or punishment in respect of the offence.
Appointment of assistants
19.—(1) Subject to subsection (2), the Authority may appoint any of its officers to exercise any of its powers or perform any of its functions or duties under this Act, either generally or in any particular case, except —(a)
the power of appointment conferred by this subsection; and
(b)
the power to make subsidiary legislation.[4/2018]
(2) The Authority may appoint one or more of its officers to exercise —(a)
the power under section 20B(2) to grant an exemption to a particular person; or
(b)
the power under section 20B(3) to revoke an exemption granted under section 20B(2), or to add to, vary or revoke any condition of the exemption.[4/2018]
[Act 5 of 2025 wef 09/03/2025]
(2A) An appointment under subsection (2) must be published in the Gazette.[Act 5 of 2025 wef 09/03/2025]
(3) Any officer appointed by the Authority under subsection (1) or (2) is deemed to be a public servant for the purposes of the Penal Code 1871.[4/2018]
Power of Authority to approve Rules of designated system
19A.—(1) An operator, a settlement institution or a collateral holder of a designated system must, before implementing or amending any Rules of the designated system, obtain the written approval of the Authority to do so.[4/2018]
(2) An application for approval under subsection (1) —(a)
must be made in such form and manner as the Authority may specify in a written direction issued under section 20A(1); and
(b)
must be accompanied by a written legal opinion that —(i)
is given by a legal practitioner who is any of the following individuals, and whom the Authority is satisfied is qualified to give that opinion:(A)
an advocate and solicitor;
(B)
a foreign lawyer as defined in section 2(1) of the Legal Profession Act 1966;
(C)
a legal counsel as defined in section 3(7)(a) of the Evidence Act 1893; and
(ii)
certifies that the proposed implementation or amendment of the Rules of the designated system will satisfy the criteria mentioned in subsection (3)(a).[4/2018]
(3) The Authority may, when determining whether to grant its written approval under subsection (1), have regard to —(a)
any criteria that may be prescribed in regulations made under section 20 or specified in written directions issued under section 20A; and
(b)
any other matter that the Authority considers relevant.[4/2018]
(4) The Authority must not refuse any application for approval under subsection (1) without giving the applicant an opportunity to be heard.[4/2018]
(5) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $200,000 and, in the case of a continuing offence, to a further fine not exceeding $20,000 for every day or part of a day during which the offence continues after conviction.[4/2018]
(6) Where any Rules of a designated system are implemented before 6 June 2018 by any operator, settlement institution or collateral holder of the designated system, those Rules are deemed by this subsection to be implemented with the written approval of the Authority under subsection (1).[4/2018]
Power to make regulations
20.—(1) The Authority may make any regulations that may be necessary or expedient for carrying out the purposes and provisions of this Act and for prescribing anything that may be required or authorised to be prescribed by this Act.
(2) Without limiting subsection (1), the Authority may make regulations for the purpose of ensuring the integrity of, and the fair and orderly conduct of, designated systems.[4/2018]
(3) Regulations made under this section may provide —(a)
that a contravention of any provision of those regulations shall be an offence; and
(b)
for a penalty not exceeding a fine of $150,000 for each offence.[4/2018]
Power to issue written directions
20A.—(1) The Authority may, for any of the following reasons, issue written directions, either of a general nature or of a specific nature, to any person or class of persons specified in subsection (2):(a)
the Authority thinks it is necessary or expedient for ensuring the integrity and proper management of a designated system;
(b)
the Authority thinks it is necessary or expedient for the effective administration of this Act;
(c)
the Authority thinks it is otherwise in the interests of the public or a section of the public.[4/2018]
(2) If the Authority issues any written direction under subsection (1) to any of the following persons or classes of persons, that person or class of persons must comply with that direction:(a)
any participant or class of participants of a designated system;
(b)
any operator or class of operators of a designated system;
(c)
any settlement institution or class of settlement institutions of a designated system;
(d)
any collateral holder or class of collateral holders of a designated system.[4/2018]
(3) Without limiting subsection (1), a written direction issued under that subsection may relate to any of the following matters:(a)
the appropriate actions to be taken by any person specified in subsection (2), or by any person belonging to a class of persons specified in subsection (2), in relation to that person’s business;
(b)
the Rules of a designated system;
(c)
the conditions that will apply if any function of an operator or a settlement institution of a designated system is outsourced.[4/2018]
(4) A written direction issued under subsection (1) need not be published in the Gazette.[4/2018]
(5) The Authority may at any time vary or revoke any written direction issued under subsection (1).[4/2018]
(6) Any person who fails to comply with a written direction issued under subsection (1) to that person, or to a class of persons to whom that person belongs, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.[4/2018]
Exemption
20B.—(1) The Authority may, by regulations made under section 20, exempt any person or class of persons from all or any of the provisions of this Act, subject to any conditions that may be prescribed in those regulations.[4/2018]
(2) The Authority may, on the application of any person, and if the Authority considers it appropriate to do so in the circumstances of the case, by written notice exempt that person, subject to any conditions that the Authority may specify by written notice, from —(a)
all or any of the provisions of this Act; and
(b)
any requirement that —(i)
is imposed by the Authority under this Act; or
(ii)
is specified in any written direction issued under section 20A(1).[4/2018]
(3) The Authority may at any time, by written notice —(a)
revoke any exemption granted under subsection (2); or
(b)
add to, vary or revoke any condition of such an exemption imposed under subsection (2) or this paragraph.[4/2018]
(4) An exemption granted under subsection (2), and every other written notice under this section, need not be published in the Gazette.[4/2018]
Settlement system deemed to be designated system under this Act
21. A settlement system operated by the Authority under the repealed section 59A of the Banking Act 1970 immediately before 9 December 2002 is deemed to be a designated system under this Act.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
