The Monetary Authority of Singapore ("MAS") has announced key regulatory enhancements to safeguard investors' interests, following a public consultation in July 2014.
First, the current capital markets regulatory framework will be extended to non-conventional investment products, namely, precious metals buy-back arrangements and collectively-managed investment schemes. Secondly, accredited investors will now have the option to benefit from the full range of regulatory safeguards applicable to retail investors.
Legislative amendments to effect the above changes will be tabled in Parliament in 2016.
We recently issued a Client Update on this. To view the Update, click here.
The Competition Commission of Singapore ("CCS") is consulting on proposed changes to its guidelines ("Guidelines"). The key aims of the review are to provide greater clarity and detail, and to streamline various processes.
The proposed changes seek to:
- better reflect CCS’s current practice of assessing anti-competitive agreements, mergers and acquisitions, and abuses of dominance;
- simplify and streamline the process of filing notifications to CCS for guidance or decision;
- make the process of applying for leniency clearer and more efficient; and
- introduce a new Fast Track procedure for appropriate cases with a view to enable CCS to more effectively and efficiently enforce the Competition Act.
Consultation period closes on 6 November 2015. We issued a Client Update that sets out the key proposed changes to the Guidelines. To view the Update, click here.
In March 2015, the Monetary Authority of Singapore ("MAS") and Singapore Exchange ("SGX") jointly signed a Memorandum of Understanding ("MOU") with the Securities Commission Malaysia and the Securities & Exchange Commission Thailand to establish a Streamlined Review Framework for the ASEAN Common Prospectus ("Framework"). The Framework, which is an initiative under the ASEAN Capital Markets Forum Implementation Plan endorsed by the ASEAN Finance Ministers, will facilitate cross-border offerings of equity securities and plain debt securities in ASEAN, and enhance ASEAN's attractiveness as a fund-raising centre.
Under the Framework, ASEAN issuers planning a multi-jurisdictional offering of equity or plain debt securities can expect a shorter time-to-market, and faster access to capital across signatory countries through a streamlined review process. Both Home and Host Authorities will have to complete the prospectus review process at the same time for the prospectus (which must be prepared in accordance with the ASEAN Disclosure Standards), within three to four months from the date of submission.
On 4 September 2015, MAS and SGX jointly announced the issuance of a handbook by the participating jurisdictions to implement the Framework ("Handbook"). The Handbook provides detailed guidance on the operational aspects of the Framework, including criteria for issuers, application procedures and the review timeline.
To access the Handbook, click here. We issued a Client Update highlighting the key features of the Handbook. To view the Update, click here.
The Organised Crime Bill was passed in Parliament on 17 August 2015. The Bill will create certain offences related to the activities of organised criminal groups ("OCG"), and provide for certain orders to be made by the courts in order to prevent and disrupt such activities. The key provisions of the Bill include:
- Criminalisation of OCG-related activities, including instructing a person to commit offences for an OCG, giving help to an OCG, recruitment of members and being an OCG member, enhanced penalties for those who commit crimes such as trafficking and corruption, as part of an OCG.
- Introduction of preventive orders such as Disqualification Orders, Financial Reporting Orders and Organised Crime Prevention Orders, to constrain activities of OCGs;
- Introduction of a non-conviction based regime to eliminate the chance for persons to profit from carrying out organised crime activities; and
- Introduction of enhanced investigative powers for law enforcement agencies to investigate and obtain information from the Comptroller of Income Tax and the Comptroller of Goods and Services Tax.
We issued a Client Update on the Organised Crime Act and its impact on remote gambling operations and intellectual property piracy. To access the Update, click here.
The Ministry of Manpower ("MOM") had announced in 2014 that it would require employers to issue itemised payslips and key employment terms ("KETs") in two years. The Employment (Amendment) Bill ("Bill") puts these requirements into law. The Bill also sets up administrative penalty framework to make less severe breaches of the Employment Act ("EA") non-criminal.
The key changes introduced by the Bill, which was passed on 17 August 2015, include the following:
- Itemised payslips. Employers are mandated to provide itemised payslips to all their employees covered under the EA together with their salary payments.
- Key Employment Terms. Employers are required to provide written KETs to all employees covered under the EA with continuous employment of at least 14 days with the company. Itemised payslips and KETs provide greater clarity and assurance to employees about their regular salary components as well as their key employment terms and benefits. These will also prevent misunderstanding and minimise disputes at the workplace.
- Administrative penalty framework. Currently, all breaches of the EA are criminal offences. The Bill sets up a framework that treats less severe breaches as "civil breaches" which attract administrative penalties. These breaches include failure to provide itemised payslips, failure to provide written KETs, and failure to keep detailed employment records.
It is understood that MOM intends to implement the changes on 1 April 2016. However, in view of strong feedback from the smaller SMEs who will be most affected by the changes, MOM will give employers a one-year grace period, during which MOM will adopt a light-touch enforcement approach whereby employers will be assisted to meet the legislative requirements.
We recently issued a Client Update in relation to the amendments to the EA. To view the Update, click here.
Patent owners in Singapore can now re-register their patents in Cambodia at its Ministry of Industry and Handicraft ('MIH"), and submit Intellectual Property Office of Singapore ("IPOS")-issued Search and Examination ("S&E") reports to MIH for the grant of Cambodia-related patent applications. This is made possible pursuant to the Memorandum of Understanding signed by Cambodia's MIH and the IPOS.
During the term that a patent is in force in Singapore, patent owners can re-register their Singapore patent in Cambodia by submitting a request for re-registration to the MIH. Moreover, patent applicants in Singapore who have a Cambodia-related patent application may now request IPOS to submit a copy of the (i) final S&E report issued by IPOS and (ii) final specifications of the Singapore-related patent application to MIH for the grant of the Cambodia-related patent application. To facilitate the grant of the Cambodia related patent application, the applicant may also request for the specifications of the Cambodia-related patent application to be amended accordingly to the final specifications of the Singapore-related patent application.
We had previously featured this MOU in the January/February/March 2015 issue of the Regional Round-Up. To access the write-up, click here.
