3 Page 3 of 32 Short title PART I PRELIMINARY 1. This Act may be cited as the Monetary Authority of Singapore Act. Interpretation 2. In this Act, unless the context otherwise requires Authority means the Monetary Authority of Singapore established under section 3; bank means a bank licensed under the Banking Act (Cap. 19); board means the board of directors of the Authority; director means a director appointed under section 8(1) and the chairman and the deputy chairman of the board; financial instrument has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289); managing director means a director appointed under section 9(1); money market operations means any transaction undertaken by the Authority as the central bank to manage liquidity in the banking system; officer, in relation to the Authority, includes any person employed by the Authority in an executive capacity. PART II ESTABLISHMENT, CAPITAL AND ADMINISTRATION OF AUTHORITY Establishment of Authority 3. (1) There shall be established an Authority to be called the Monetary Authority of Singapore which shall be a body corporate and shall have perpetual succession and may sue and be sued in its own name. (2) The Authority shall have a common seal and the seal may, from time to time, be broken, changed, altered and made anew as to the Authority seems fit, and, until a seal is provided under this section, a stamp bearing the inscription The Monetary Authority of Singapore may be used as the common seal. (3) All deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the common seal of the Authority, by the authority of the Authority, in the presence of the managing director and of some other person duly authorised by the Authority to act in that behalf and shall be signed by the managing director and by such duly authorised person.
4 Page 4 of 32 (4) Such signing shall be sufficient evidence that the common seal of the Authority has been duly and properly affixed and that the seal is the lawful common seal of the Authority. (5) The Authority may, by resolution or otherwise, appoint an officer of the Authority or any other agent either generally or in a particular case to execute or sign on behalf of the Authority any agreement or other instrument not under seal in relation to any matter coming within the powers of the Authority. Principal objects and functions of Authority 4. (1) The principal objects of the Authority shall be (d) (d) to maintain price stability conducive to sustainable growth of the economy; to foster a sound and reputable financial centre; to ensure prudent and effective management of the official foreign reserves of Singapore; and to grow Singapore as an internationally competitive financial centre. (2) The functions of the Authority shall be Paid-up capital to act as the central bank of Singapore, including the conduct of monetary policy, the issuance of currency, the oversight of payment systems and serving as banker to and financial agent of the Government; to conduct integrated supervision of financial services and financial stability surveillance; to manage the official foreign reserves of Singapore; and to develop Singapore as an international financial centre. 5. (1) The paid-up capital of the Authority shall be $100 million. (2) The paid-up capital may be increased from time to time by such amount as the Government may approve. (3) The payment of such increase in the paid-up capital may be made by way of transfers from the General Reserve Fund or by such other means as the Government, in consultation with the board, may from time to time approve. General Reserve Fund 6. (1) There shall be a General Reserve Fund of the Authority. (2) At the end of each financial year, the net profit of the Authority for that year shall be determined after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff and pension funds and such other contingencies or purposes as the Authority may determine.
5 Page 5 of 32 (3) Subject to subsection (4), such part of the net profit for each financial year as the Authority may determine shall be paid to the Government and the remainder of the net profit, if any, shall be credited to the General Reserve Fund. (3A) Notwithstanding subsection (3), the Authority may pay to the Government such amount from the General Reserve Fund over and above the net profit, if any, as the Authority may determine. (4) Where at the end of a year the General Reserve Fund is Board of directors less than half the paid-up capital of the Authority, the whole of the net profit shall be credited to the General Reserve Fund; and not less than half the paid-up capital of the Authority but less than twice the paid -up capital of the Authority, not less than 30% of the net profit shall be credited to the General Reserve Fund. 7. (1) There shall be a board of directors of the Authority which shall be responsible for the policy and general administration of the affairs and business of the Authority. (2) The board shall, from time to time, inform the Government of the regulatory, supervisory and monetary policies of the Authority. (3) The board shall consist of a chairman who shall be appointed by the President on the recommendation of the Cabinet; and not less than 4 and not more than 9 other directors, one of whom shall be the deputy chairman, appointed in accordance with sections 8 and 9. (4) The board shall furnish the Minister with such information as the Minister may require in respect of the duties and functions of the Authority. Appointment of directors 8. (1) The directors referred to in section 7(3) shall be appointed by the President who shall, on the recommendation of the Minister, also appoint the deputy chairman. (2) The directors so appointed [26/84; 11/91; 28/98] shall not act as delegates on the board from any commercial, financial, agricultural, industrial or other interests with which they may be connected; shall hold office for a term not exceeding 3 years and shall be eligible for reappointment; and may be paid by the Authority out of the funds of the Authority such remuneration and allowances as may be determined by the President. (3) Subsection (2) and shall not apply to a director who is appointed managing director under section 9.
8 Page 8 of 32 shall be disregarded for the purpose of constituting a quorum of the board for any such deliberation or decision. (3) No act or proceeding of the board shall be questioned on the ground that a director has contravened this section. Appointment of committees and delegation of powers 13A. (1) The Authority may appoint from among its directors or other persons who are not directors such number of committees as it thinks fit for purposes which, in the opinion of the Authority, would be better regulated and managed by means of such committees. (2) The Authority may, subject to such conditions or restrictions as it thinks fit, delegate to any such committee or any director any of the powers, functions or duties of the Authority under this Act or any other written law, except the power of delegation conferred by this subsection and the power to make subsidiary legislation unless expressly provided under any written law. (3) Any power, function or duty delegated under subsection (2) may be exercised or performed by such committee or director, as the case may be, in the name and on behalf of the Authority. (4) The Authority may continue to exercise a power conferred upon it, or perform a function or duty under this Act or any other written law, notwithstanding the delegation of the power, function or duty under this section. Preservation of secrecy 14. (1) Except for the purpose of the performance of his duties or the exercise of his functions or when lawfully required to do so by any court or under the provisions of any written law, no person who is or has been a director, officer, employee, consultant or agent of the Authority shall disclose to any person any information relating to the affairs of the Authority or of any person which he has acquired in the performance of his duties or the exercise of his functions. (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 3 years or to both. Remuneration not to be related to profits 15. No salary, fee, wage or other remuneration or allowance paid by the Authority shall be computed by reference to the profits of the Authority. Public servants [25/2002 wef 01/10/2002] 16. The directors, including the managing director, and the officers and employees of the Authority of every description shall be deemed to be public servants within the meaning of the Penal Code (Cap. 224).
9 Page 9 of 32 Appointment of employees PART III PROVISIONS RELATING TO STAFF, ETC 17. (1) The Authority may appoint such employees as it thinks fit and determine all matters relating to their remuneration and terms and conditions of appointment and employment. (2) The Authority may engage the services of advisers in such manner and on such terms and conditions as it thinks fit. (3) The Authority may make rules, not inconsistent with this Act, for the appointment, promotion, conduct and discipline and terms and conditions of service of its employees. Transfer of employees 18. (1) On 1st January 1971, such persons, as the Minister may decide, who were employed by the Government immediately prior to that date and were exercising any of the powers or were discharging any of the functions or duties vested in the Authority by this Act, shall be deemed to be transferred to the service of the Authority on terms not less favourable than those they enjoyed immediately prior to their transfer. (2) Such terms (which shall be determined by the Authority) shall take into account the salaries and conditions of service including any accrued rights to leave enjoyed by them while in the employment of the Government. Pension schemes, provident fund, etc. 19. (1) The Authority may, with the approval of the President, make rules for the establishment of a scheme or schemes for the payment of pensions, gratuities, provident fund or other superannuation benefits to such employees or classes of employees of the Authority as it may determine, or to their legal personal representatives or dependants, on the death or retirement of those employees from the service of the Authority or on their otherwise leaving the service of the Authority. (2) The Authority in making under subsection (1) any pension, provident fund or other superannuation rules which affect any persons transferred to the service of the Authority under section 18 shall in those rules provide for the payment to those persons or their dependants of benefits not less in value than the amount of any pension, provident fund, gratuity or allowance for which those persons would have been eligible under the Pensions Act (Cap. 225) had they continued in the service of the Government. (3) Any such pension, provident fund or superannuation rules relating to length of service of persons shall provide for the recognition as service under the Authority by persons so transferred of service by them under the Government. (4) Nothing in the rules to be made under subsection (1) shall adversely affect any conditions that would have been applicable to persons transferred to the service of the Authority from their service with the Government as regards any pension, gratuity or allowance under the Pensions Act (Cap. 225).
12 Page 12 of 32 (qa) (r) form or participate in the formation of any company or in any joint venture as a shareholder or partner or in any other capacity, for purposes that are necessary or expedient for the purpose of discharging its functions or achieving its objects; and do generally all such things as may be commonly done by bankers and are not inconsistent with the exercise of its powers or the discharge of its duties under this Act. (2) For the purposes of subsection (1)(o) and section 30(d), the Government or a public authority shall have a substantial interest in a company if it, either by itself or together with any other public authority, has an interest or interests in one or more voting shares in the company and the vote or votes attached to that share, or the total votes attached to those shares either held by itself or together with any other public authority, is not less than 20% of the total votes attached to all the voting shares in the company. (3) In subsection (1), a reference to the purchase of any securities or Treasury bills includes subscribing for such securities or Treasury bills. (4) Notwithstanding subsection (1), the Authority shall not grant any loan, advance, overdraft or other credit facility to the Government, or underwrite any loan to the Government, unless the Authority is satisfied that such loan, advance, overdraft or credit facility is required by the Government to meet unexpected and temporary shortfall in the Government s revenue relative to its expenditure. (5) Notwithstanding subsection (1), the Authority shall not directly subscribe for any securities issued by the Government or any public authority. (6) Subsection (5) shall not apply to any subscription for debt securities issued by the Government or any public authority that is made in connection with in the case of debt securities (including Treasury bills) issued by the Government, the conduct of monetary policy or the development of the bond market in Singapore; or in the case of debt securities issued by any public authority, the development of the bond market in Singapore, but only insofar as the subscription does not compromise the object of the Authority referred to in section 4(1). (7) Nothing in this section shall be construed as authorising the Authority to grant any loan, advance, overdraft or other credit facility to any public authority; or underwrite any loan to any public authority. [31/2005 wef 18/10/2005] [31/72; 26/84] [21/2005 wef 30/01/2006] (8) The Authority may, in addition to the powers, duties and functions set out in this Part, exercise all powers and perform all functions and duties conferred or imposed on the Authority under this Act, the written laws set out in the Schedule, and any other written law.
17 Page 17 of 32 (d) the range of activities that they may engage in or the range of services that they may provide; the terms and conditions under which they may carry on a particular activity or provide a particular service; and all matters in which it appears to the Authority that the activities that they engage in or the services that they provide affect or are likely to affect monetary or economic policy or credit conditions or the development of Singapore as a financial centre, and the financial institutions concerned shall comply with such directions. (4) The Authority may, from time to time, issue guidelines to and impose conditions of operation on such financial institutions as it thinks fit and may amend or revise those guidelines and conditions. (5) The Authority may withdraw approval of a financial institution if it appears to the Authority that any information required to be furnished in connection with an application for approval was false or misleading in a material particular; the financial institution has failed to comply with any direction or guideline issued or condition attached to an approval or conditions of operation imposed under this section; the financial institution has conducted its affairs so as to threaten the interests of its depositors or customers; or it is in the public interest to do so. (6) Any financial institution, which is aggrieved by a decision of the Authority to withdraw approval, may appeal against the decision to the Minister whose decision shall be final. (7) A financial institution, required under subsection (1) to obtain the Authority s approval, that carries on its business without first obtaining that approval shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $3,000 for every day during which the offence continues after conviction. (8) An approved financial institution that fails to comply with any direction given under subsection (3) or any condition subject to which an approval is granted under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day during which the offence continues after conviction. Power of Authority in relation to dispute resolution schemes 28A. (1) The Authority may approve any dispute resolution scheme for the resolution of disputes arising from or relating to the provision of financial services by financial institutions.
19 Page 19 of 32 appropriate for providing guidance in relation to the operation of this section or any regulations made under this section. Corporate offenders and unincorporated associations 28B. (1) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, an officer of the body corporate, the officer as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (2) Where the affairs of the body corporate are managed by its members, subsection (1) shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate. (3) Where an offence under this Act committed by a partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, the partner as well as the partnership shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (4) Where an offence under this Act committed by a limited liability partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner or manager of the limited liability partnership, the partner or manager (as the case may be) as well as the partnership shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (5) Where an offence under this Act committed by an unincorporated association (other than a partnership) is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, an officer of the unincorporated association or a member of its governing body, the officer or member (as the case may be) as well as the unincorporated association shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (6) In this section body corporate and partnership exclude a limited liability partnership within the meaning of the Limited Liability Partnerships Act (Cap. 163A); officer [42/2007 wef 01/11/2007] [42/2007 wef 01/11/2007] [42/2007 wef 01/11/2007] [42/2007 wef 01/11/2007] [42/2007 wef 01/11/2007] in relation to a body corporate, means a director, member of the committee of management, chief executive, manager, secretary or other similar officer of the body corporate, and includes a person purporting to act in any such capacity; or in relation to an unincorporated association (other than a partnership), means the president, the secretary or a member of the committee of the unincorporated association or a person holding a position analogous to that of president, secretary or member of a committee, and includes a person purporting to act in any such capacity; partner, in relation to a partnership, includes a person purporting to act as a partner.