s 289 Approval of trustees
289.—(1) The Authority may, upon an application made to the Authority in such form and manner as may be prescribed by regulations made under section 341, approve a public company to act as a trustee for collective investment schemes which are authorised under section 286 and constituted as unit trusts (called in this Subdivision an approved trustee), subject to such conditions or restrictions as the Authority thinks fit to impose by written notice.[34/2012] (1A) The Authority may, at any time, by written notice to the approved trustee, vary or revoke any condition or restriction imposed by the Authority under subsection (1) or impose such further condition or restriction as the Authority thinks fit.[34/2012] (2) The Authority must not approve a public company to act as trustee under subsection (1) unless the company satisfies such financial requirements and other criteria as the Authority may prescribe. (3) An approved trustee must continue to satisfy the financial requirements and other criteria prescribed under subsection (2) and every condition or restriction imposed by the Authority under subsection (1) or (1A).[34/2012] (4) Where the Authority is of the opinion that an approved trustee —(a) has failed to satisfy a financial requirement or other criterion prescribed under subsection (2), or any condition or restriction imposed by the Authority under subsection (1) or (1A); (b) has not carried out its duties with due care and diligence; (c) has acted in a manner which prejudices the participants of any authorised collective investment scheme; or (d) has failed to comply with this Act or the Code on Collective Investment Schemes, the Authority may — (e) revoke an approval granted under this section and may direct the manager for the collective investment scheme or schemes which such approved trustee was acting for, to appoint a new trustee for the scheme or schemes; (f) prohibit such approved trustee from acting as trustee for any new collective investment scheme; or (g) issue such direction as it deems fit.[34/2012] (4A) Where, upon the Authority exercising any power under section 292D(2) or 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 an approved trustee, the Authority considers that it is in the public interest to do so, the Authority may —(a) revoke the approval granted to the approved trustee under this section; and (b) direct the manager for the collective investment scheme or schemes, which the approved trustee was acting for, to appoint a new trustee for the scheme or schemes.[10/2013; 31/2017] [Act 18 of 2022 wef 10/05/2024] (5) An approved trustee must comply with any direction issued to it under subsection (4). (6) It is not necessary to publish any direction issued under subsection (4) in the Gazette.[34/2012] (7) Any approved trustee who contravenes subsection (3) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.