s 55ZA Revocation of merchant bank licence
55ZA.—(1) The Authority may by order revoke a merchant bank licence granted under section 55S or treated as granted under section 64 of the Banking (Amendment) Act 2020 —(a) if the Authority is satisfied that the merchant bank holding that licence —(i) has ceased to transact all permitted business in Singapore; (ii) has provided any information or document to the Authority that is false or misleading in any material particular in connection with its application —(A) for a merchant bank licence under section 55S; or (B) to be an approved financial institution under section 28(1) of the Monetary Authority of Singapore Act 1970 as in force immediately before the date of commencement of section 205 of the Financial Services and Markets Act 2022 or to be approved under section 4(2) of the Financial Services and Markets Act 2022;[Act 18 of 2022 wef 28/04/2023] (iii) if it is a merchant bank incorporated outside Singapore, has had its licence or authority to operate withdrawn by the supervisory authority that is responsible, under the laws of the country or territory where the merchant bank is incorporated, formed or established, for supervising the merchant bank; (iv) proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved; (v) is carrying on its business in a manner likely to be detrimental to the interests of its depositors, customers or creditors, or has insufficient assets to cover its liabilities to its depositors, customers, creditors or the public; (vi) is contravening or has contravened any provision of this Act; (vii) has been convicted of an offence under this Act, or any of its directors or officers holding a managerial or executive position has been convicted of an offence under this Act; [Act 18 of 2022 wef 28/04/2023] (viii) is contravening or has contravened any direction issued by the Authority under the Monetary Authority of Singapore Act 1970 or any provision of that Act; or[Act 18 of 2022 wef 28/04/2023] (ix) is contravening or has contravened any direction issued by the Authority under the Financial Services and Markets Act 2022 or any provision of that Act;[Act 18 of 2022 wef 28/04/2023] (b) if the Authority considers that it is in the public interest to do so —(i) upon the Authority exercising any power under section 49(2) as applied by section 55ZJ(1) in relation to the merchant bank; (ii) upon the Minister exercising any power under Division 2, 4, 5 or 6 of Part 8 of the Financial Services and Markets Act 2022 in relation to the merchant bank; or[Act 18 of 2022 wef 10/05/2024] (iii) on any other ground; or (c) where the merchant bank holding the licence is a foreign‑owned merchant bank incorporated in Singapore — if the parent supervisory authority of the merchant bank has withdrawn the licence or authority to operate of the parent bank of the merchant bank.[1/2020] (2) Before revoking the licence of a merchant bank under subsection (1), the Authority must —(a) give written notice to the merchant bank of its intention to do so; and (b) require the merchant bank to show cause, within the time specified in the notice, as to why the licence should not be revoked.[1/2020] (3) If the merchant bank —(a) fails to show cause within the time specified in the notice or within an extended period of time allowed by the Authority in any particular case; or (b) fails to show sufficient cause, the Authority may give written notice to the merchant bank of the revocation and the date on which the revocation is to take effect (called in this section the revocation date), and the date must be at least 21 days after the date of the notice. [1/2020] (4) An order for revocation made by the Authority takes effect on the revocation date specified in the notice issued under subsection (3), or any later date specified by the Authority by written notice to the merchant bank.[1/2020] (5) Any merchant bank whose licence has been revoked under this section may, within 21 days starting on the date of the notice mentioned in subsection (3), appeal in writing to the Minister whose decision is final.[1/2020] (6) If within the period specified in subsection (5), the merchant bank appeals in writing to the Minister, the order by the Authority to revoke the licence does not take effect unless the order is confirmed by the Minister or the appeal is dismissed by the Minister.[1/2020] (7) An appeal by a merchant bank under this section does not affect the exercise of any power —(a) by the Authority under section 49, 50, 51, 52 or 53 (as applied by section 55ZJ(1)) in relation to the merchant bank; or (b) by the Minister under Division 2, 4, 5 or 6 of Part 8 of the Financial Services and Markets Act 2022, in relation to the merchant bank.[1/2020] [Act 18 of 2022 wef 10/05/2024]