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Action by Authority if relevant financial institution unable to meet obligations, etc.

Monetary Authority of Singapore Act 1970

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—(1) The Authority may exercise any one or more of the powers specified in subsection (2) as appears to it to be necessary, where —(a)a relevant financial institution informs the Authority that it is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it has suspended or is about to suspend payments;(b)a relevant financial institution becomes unable to meet its obligations, or is insolvent, or suspends payments;(c)the Authority is of the opinion that a relevant financial institution —(i)is carrying on its business in a manner likely to be detrimental to the interests of such persons as may be prescribed by regulations made under section 41 in relation to the relevant financial institution;(ii)is or is likely to become insolvent, or is or is likely to become unable to meet its obligations, or is about to suspend payments;(iii)has contravened any of the provisions of this Act; or(iv)has failed to comply with any condition attached to its approval under section 28; or(d)the Authority considers it in the public interest to do so.(2) Subject to subsections (1) and (3), the Authority may —(a)require the relevant financial institution immediately to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary;(b)appoint one or more persons as statutory adviser, on such terms and conditions as the Authority may specify, to advise the relevant financial institution on the proper management of such of the business of the relevant financial institution as the Authority may determine; or(c)assume control of and manage such of the business of the relevant financial institution as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms and conditions as the Authority may specify.(3) In the case of a relevant financial institution incorporated outside Singapore, any appointment of a statutory adviser or statutory manager or any assumption of control by the Authority of any business of the relevant financial institution under subsection (2) must only be in relation to —(a)the business or affairs of the relevant financial institution carried on in, or managed in or from, Singapore; or(b)the property of the relevant financial institution located in Singapore, or reflected in the books of the relevant financial institution in Singapore (as the case may be) in relation to its operations in Singapore.(4) Where the Authority appoints 2 or more persons as the statutory manager of a relevant financial institution, the Authority must specify, in the terms and conditions of the appointment, which of the duties, functions and powers of the statutory manager —(a)may be discharged or exercised by such persons jointly and severally;(b)must be discharged or exercised by such persons jointly; and(c)must be discharged or exercised by a specified person or such persons.(5) Where the Authority has exercised any power under subsection (2), it may, at any time and without affecting its power under section 28(5)(c) and (d), do one or more of the following:(a)vary or revoke any requirement of, any appointment made by or any action taken by the Authority in the exercise of such power, on such terms and conditions as it may specify;(b)further exercise any of the powers under subsection (2);(c)add to, vary or revoke any term or condition specified by the Authority under this section.(6) No liability shall be incurred by a statutory adviser or a statutory manager for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —(a)the exercise or purported exercise of any power under this Act;(b)the performance or purported performance of any function or duty under this Act; or(c)the compliance or purported compliance with this Act.(7) Any relevant financial institution that fails to comply with a requirement imposed by the Authority under subsection (2)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction.

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