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Panama-Singapore Free Trade Agreement |
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ANNEX III
FINANCIAL SERVICES
(NON-CONFORMING MEASURES) SECTION A
SINGAPORE
Section A
Banking
Sector Financial Services
Sub-Sector Banking
Industry
Classification
CPC 811 Financial Intermediation Services, except insurance
and pension
fund services
Type of
Reservation
Market Access for Financial Institutions
Measure Banking Act, Cap. 19
MAS Notice 619
Guidelines for Operation of Wholesale Banks, Guidelines for
Operation of Offshore Banks
Description of
Reservation
Only institutions licensed or approved by the Monetary Authority
of
Singapore as banks and merchant banks can accept deposits.
Foreign banks may only establish as Singapore branch offices of
a
corporation or Singapore-incorporated companies. Wholesale Banks
Wholesale banks are not permitted to:
(a) accept Singapore dollar fixed deposits of less than
S$250,000;
(b) offer savings accounts;
(c) operate interest-bearing Singapore dollar current accounts for natural persons who are Singapore residents;
(d) issue Singapore dollar bonds and negotiable certificates of deposit, unless the requirements pertaining to minimum maturity period, minimum denomination or class of investors contained in the Guidelines for Operation of Wholesale Banks issued by the Monetary Authority of Singapore and / or its successor body are complied with.
Only a maximum of 20 new Wholesale Bank licenses will be granted by the Monetary Authority of Singapore and / or its
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successor body between 30 June 2001 and 30 June 2003.
Offshore banks
Offshore banks are not permitted to:
(a) provide credit facilities to non-bank residents of Singapore
in Singapore dollars exceeding a total of S$500 million at any one time;
(b) offer savings account;
(c) accept any fixed or other interest-bearing deposits in
Singapore dollars from non-bank residents of Singapore;
(d) operate current accounts for non-bank residents unless the accounts are offered:
(i) in connection with credit facilities granted to, or other business dealings with the customer; or
(ii) to customers of the bank's head office;
(e) operate interest-bearing Singapore dollar current accounts for natural persons who are Singapore residents;
(f) accept Singapore dollar fixed deposits of less than
S$250,000 from non-bank non-residents;
(g) issue Singapore dollar bonds and negotiable certificates of deposit, unless the requirements pertaining to minimum maturity period, minimum denomination or class of investors contained in the Guidelines for Operation of Offshore Banks issued by the Monetary Authority of Singapore and/or its successor body are complied with.
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Sector Financial Services
Sub-Sector Banking
Industrial
Classification
CPC 811 Financial Intermediation Services, except insurance
and pension
fund services
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Finance Companies Act, Cap. 108
Description
of
Reservation
No new finance company licenses will be granted.
Finance companies may only establish as Singapore incorporated companies.
Finance companies are not permitted to establish off-premise ATMs, ATM networking or allow their accounts to be debited through an Electronic Funds Transfer at Point of Sale (EFTPOS).
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Sector Financial Services
Sub-Sector Banking
Industrial
Classification
CPC 8111 Services of Monetary Intermediaries
Type of
Reservation
Market Access for Financial Institutions
Measure Banking Act, Cap. 19
Monetary Authority of Singapore Act, Cap. 186
Guidelines for Operation of “Merchant” Banks
Description
of
Reservation
Merchant banks may only establish as Singapore branch offices
of a
corporation or Singapore-incorporated companies.
No merchant bank may establish more than one office (excluding back-office operations.
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Sector Financial Services
Sub-Sector Banking
Industry
Classification
CPC 811 Financial Intermediation Services, except insurance
and pension
fund services
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Senior
Management and Boards of Directors
Measure Banking Act, Cap. 19
Monetary Authority of Singapore Act, Cap. 186
MAS Notice No. 622
Description of
Reservation
No foreign shareholders shall acting alone or in concert with
other
shareholders, assume control of any Singapore incorporated
bank or a company belonging to a class of financial institutions
approved as financial holding companies under section 28 of the Monetary
Authority of Singapore Act (“referred to as financial holding
company”).
A majority of the directors of a bank incorporated in Singapore must be either Singapore citizens or Singapore permanent residents.
Approval from the Minister is required before a
shareholder
(together with associated persons) is allowed to acquire
shareholdings in a Singapore incorporated bank or a financial holding
company to 5%, 12% and 20%, and before a Singapore incorporated bank or a
financial holding company is allowed to be merged or taken over by any other
body.
In approving applications to exceed the threshold limits, the Minister may impose conditions it considers necessary to prevent undue control, protect public interests, and ensure the integrity of the financial system.
A foreign shareholder is a person that is:
(a) in the case of a
natural person, not a citizen of Singapore;
and
(b) in the case of a corporation, not controlled by citizens
of
Singapore.
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Sector Financial Services
Sub-Sector Settlement and clearing services for financial assets
Industry
Classification
CPC 813 Services auxiliary to financial intermediation other than
to
insurance and pension funding
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Banking Act, Cap. 19
Description
of
Reservation
Only a clearing house established under the Banking Act may
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Securities
Sector Financial Services
Sub-Sector
Industry
Classification
CPC 8131 Services related to the administrative of
financial
markets
CPC 8132 Services related to securities markets
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Securities and Futures Act 2001, Cap. 289
Description of
Reservation
The establishment or operation of securities and futures markets
as
exchanges, exempt exchanges or recognized trading system providers, is subject
to the authorisation, including the imposition
of conditions for
authorisation, by the Monetary Authority of
Singapore and/or its successor
body.
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Sector Financial Services
Sub-Sector Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise; participation in all kinds of securities, including underwriting and
placement as agent and provision of service related to such issues
Industry
Classification
CPC 8132 Services related to securities markets
Type of
Reservation
Market Access for Financial Institutions
Measure Banking Act, Cap. 19
Description
of
Reservation
Banks and merchant banks are required to establish separate
subsidiaries
to trade financial futures for customers.
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Sector Financial Services
Sub-Sector Asset management
Industry
Classification
CPC 8132 Services related to securities market
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Admission Criteria, Guidelines and Application Forms for Fund
Management and Insurance Companies included under CPFIS
Description
of
Reservation
In considering the admission of Fund Management Companies
(FMCs)
under the Central Provident Fund Investment Scheme
(CPFIS), the Central
Provident Fund Board and/or its successor body takes into consideration the
following factors:
(a) whether the FMC has a minimum one-year track record as a capital markets services license holder under the Securities and Futures Act (or its equivalent under the Securities Industry Act) in the fund management industry
in Singapore while the group as a whole has a minimum of 3 years track record in fund management;
(b) whether the FMC manages at least S$500 million worth of funds in Singapore;
(c) whether the FMC has a minimum of 3 fund managers, two of whom must have at least 5 years of fund management experience;
(d) whether the FMC is able to show evidence of its commitment to grow in its Singapore operations;
(e) whether the FMC demonstrates a commitment to contribute to the future development of the fund management industry in Singapore, such as the transfer of fund management and other related skills to personnel employed locally and in investor education.
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Sector Financial Services
Sub-Sector Participation in all kinds of securities, including underwriting and placement as agent and provision of service related to such issues
Industry
Classification
CPC 8132 Services related to securities markets
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Banking Act, Cap. 19
Description
of
Reservation
Banks' and merchant banks' membership on any
securities
exchange or futures exchange established in Singapore must
be held through subsidiaries.
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Sector Financial Services
Sub-Sector Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services
Industry
Classification
CPC 9119 Other financial intermediation services, other than
insurance and
pension fund services
CPC 8131 Services related to the administration of
financial markets
CPC 8132 Services related to securities markets
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Companies Act, Cap. 50
Description
of
Reservation
Only the Central Depository Pte Ltd and/or its successor body
is
authorised to provide securities custodial services for book-entry
securities
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Sector Financial Services
Sub-Sector Securities
Industry
Classification
CPC 8132 Services related to securities markets
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Securities and Futures Act 2001, Cap. 289
Description
of
Reservation
Holders of a capital markets services licence may only establish
as
Singapore-incorporated companies or Singapore branch offices of a
corporation.
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Sector Financial Services
Sub-Sector Payment and non-money transmission services
Industry
Classification
CPC 811 Financial Intermediation Services, except insurance
and pension
fund services
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Money-Changing and Remittance Businesses Act, Cap. 187
Description
of
Reservation
Remittance shops and money-changing businesses, except
where the
remittance or money-changing business is conducted by banks, merchant banks and
finance companies, must be majority-owned by Singapore citizens (i.e. ownership
of more
than 50% shareholding).
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Insurance
Sector Financial Services
Sub-Sector Insurance
Industry
Classification
CPC 812 Insurance (including reinsurance) and pension fund
services except
compulsory social security services
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Admission Criteria, Guidelines and Application Forms for Fund
Management and Insurance Companies included under CPFIS
Description
of
Reservation
In considering the admission of Insurers under the
Central
Provident Fund Investment Scheme (CPFIS), the Board takes into
consideration the following factors:
(a) whether the insurer is licensed under the Insurance Act to carry on life insurance business.
(b) whether the insurer has a minimum one-year track record as
a licensed insurer in Singapore; and
(c) whether the insurer employs a minimum of three fund management staff, two of whom have at least five years of fund management experience. The third may only have two years of fund management experience if he or she:
(i) is a fully qualified Chartered Financial Analyst (CFA), or
(ii) is an Associate of the Society of Actuaries, or
(iii) holds a Certificate in Finance and Investments from the
Institute of Actuaries, or
(v) holds an equivalent qualification from any of the professional actuarial bodies recognised in Singapore.
(d) whether the insurer and its related group of companies have
a sound financial position.
(e) whether the insurer and its related group of companies have
a good regulatory compliance record in Singapore and in
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other countries where they operate.
(f) whether the insurer is able to show evidence of its commitment to grow its Singapore operations in areas such as:
(i) the amount of funds managed;
(ii) range of products offered
(g) whether the insurer demonstrates a commitment to contribute to the future development of the insurance industry in Singapore eg. in the transfer of insurance, fund management and other related skills to personnel employed locally and in investor education.
Note:
The above listed is the basic criteria for Insurers to be included under CPFIS. The Board, in consultation with MAS, may consider an applicant for admission, on case by case basis, if the applicant does not meet a specific criterion but has other strengths.
Insurers that pass the qualifying criteria stated above will be allowed to offer new investment-linked insurance products (ILPs) and manage ILP sub-funds.
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Sector Financial Services
Sub-Sector Insurance
Industry
Classification
CPC 814 Services auxiliary to insurance and pension funding
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Insurance Act, Cap 142
Description
of
Reservation
All Insurance brokers (including reinsurance brokers) must be
established
as Singapore incorporated companies.
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Sector Financial Services
Sub-Sector Insurance
Industry
Classification
CPC 812 Insurance (including reinsurance) and pension fund
services except
compulsory social security services
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Insurance Act, Cap. 142
Description
of
Reservation
Direct life insurers may only establish as
Singapore-incorporated
companies.
Reinsurers (intending to be licensed under the Insurance Act) and non-life direct insurers may only establish as Singapore- incorporated companies or Singapore branch offices of a corporation, but may not establish any representative offices.
Captive insurers may only establish as Singapore incorporated companies.
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Sector Financial Services
Sub-Sector Insurance
Industry
Classification
CPC 812 – Insurance (including reinsurance) and pension
fund
services except compulsory social security services
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Cross
Border Trade in Financial Services
Measure Motor Vehicles (Third Party Risks and Compensation) Act, Cap.
189
Workmen's Compensation Act, Cap. 354
Description
of
Reservation
Compulsory insurance of Motor Third Party Liability and
Workmen's
Compensation can only be purchased directly or through an intermediary from
licensed insurers in Singapore.
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Sector Financial Services
Sub-Sector Insurance
Industry
Classification
CPC 814 – Services auxiliary to insurance and pension funding
Type of
Reservation
National Treatment
Cross Border Trade in Financial Services
Measure Insurance Act, Cap 142, Financial Advisers Act, Cap. 110
Description
of
Reservation
The placement of domestic risk outside Singapore by brokers is
subject to
approval by the Monetary Authority of Singapore, with the exception of
reinsurance risks and insurance risks relating to maritime liabilities of ship
owners insured by protection and indemnity clubs.
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Sector Financial Services
Sub-Sector Insurance
Industry
Classification
CPC 812 Insurance (including reinsurance) and pension fund
services,
except compulsory social security service
Type of
Reservation
National Treatment
Description
of
Reservation
Singapore will require product filing for life insurance business,
as well
as product approval for Central Provident Fund-related products,
investment-linked products and insurance products new to the Singapore
market
Existing
Measures
Admission criteria set by CPF Board and Ministry of Health
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All Sectors
Sector Financial Services Sub-Sector All sectors Industry
Classification
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Companies Act, Cap. 50, Part IV Division 7A
Securities and Futures Act, Cap. 289, Part III Banking Act, Cap. 19, section 59
Description
of
Reservation
Clearing and settlement services for exchange-traded securities
and
financial futures and inter-bank transfers can only be provided by Central
Depository (Pte) Limited, Singapore Exchange Derivatives Clearing Ltd and
Banking Computer Services Pte Ltd respectively
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Sector Financial Services
Sub-Sector All sectors
Industry
Classification
Type of
Reservation
Market Access for Financial Institutions
National Treatment
Measure Insurance Act, Cap. 142 MAS Notice 109
Banking Act, Cap 19 MAS Notice 757
Finance Companies Act, Cap. 108 MAS Notice 816
Monetary Authority of Singapore Act, Cap. 186. MAS Notice 1105
Securities and Futures Act, Cap. 289
Description
of
Reservation
1. Financial Institutions extending Singapore dollar (S$)
credit facilities exceeding $5 million per entity to non- resident financial entities or arranging S$ equity or bond issues for non-residents, must ensure that where the S$ proceeds are to be used outside Singapore, they are swapped or converted into foreign currency upon draw- down or before remittance abroad.
2. Financial Institutions should not extend S$ credit facilities to non-resident financial entities if there is reason to
believe that the S$ proceeds may be used for S$ currency speculation
The term “non-resident” is as defined in MAS Notice 757 issued under the Banking Act.
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