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Legal Updates

Legal Updates for July 2019

What Makes Up A Restrictive Covenant: The Courts’ Position on Interpretation and Severance
Restrictive covenants are common features in employment contracts, but are often the subject of dispute. Recently, the UK Supreme Court issued a key decision in Tillman v Egon Zehnder Ltd [2019] UKSC 32, where the apex court examined the enforceability of a restrictive covenant in an employment contract. In this Update, we take a look at what makes up a restrictive covenant and delve deeper into the topics of interpretation and severance. Taking our lead from the UK position, we also discuss the comparative approach that has been taken by the Singapore courts, and what employers should keep in mind when drafting or dealing with restrictive covenants in their contracts of employment.

Are You Breaking the Law by Flying a Drone?
On 8 July 2019, a construction company was fined S$9,000 for operating a drone without the required permit. This is the first prosecution and conviction for such an offence in Singapore. The use of drones and unmanned aircrafts is increasingly common, be it for recreational or commercial purposes. In this Update, we take a look at the regulations on unmanned aircraft operations, highlighting the key requirements that operators should take note of.

MAS Guidelines on Individual Accountability and Conduct
On 26 April 2018, the Monetary Authority of Singapore ("MAS") issued a consultation paper to seek feedback on the proposed Guidelines on Individual Accountability and Conduct. On 6 June 2019, MAS issued its response to the feedback received, as well as a further consultation paper on the revised scope of Financial Institutions to which the Guidelines will be applied. This Update provides an overview of the proposed Guidelines as well as the key aspects and clarifications in the Consultation Papers and Response to Feedback.

Upcoming Changes to the Intellectual Property Dispute Resolution System in Singapore
The new Intellectual Property (Dispute Resolution) Bill (the "Bill") was read for the first time in Parliament on 8 July 2019. Progress of the Bill will be of keen interest to all Intellectual Property ("IP") right holders, as several enhancements to the IP dispute resolution system in Singapore have been put forward. This Update examines the key features of the Bill, as well as what IP right holders can expect from the new IP dispute resolution system.

Recent Updates to Chinese Cybersecurity and Data Protection Measures
The Cyberspace Administration of China recently released a series of draft measures and regulations pertaining to cybersecurity and data protection in China for public comments in quick succession. The measures and regulations will impose higher standards and strengthen China's cybersecurity and data protection regime across various sectors and fields of application. This update will examine the measures and regulations, as well as their potential implications.

Race to the Finishing Line – An Adjudication Determination's 'Best Before' Date?
The Building and Construction Industry Security of Payment Act sets out a mechanism by which contractors can make progress payment claims. What a successful claimant holds in its hands at the end of the adjudication process is an adjudication determination. The question is: does the claimant have an option as to which determination to enforce, if a subsequent adjudication determination (taking into account the former) has been made? The recent Singapore High Court case of United Integrated Services Pte Ltd v Civil Tech Pte Ltd and another [2019] SGHC 32 had the opportunity to decide on such situation.

MAS Consultation Paper on Payment Services Notices on AML/CFT
The Payment Services Act, passed in Parliament earlier this year, is set to impose major reform on the payment services regime, consolidating the regulation of payment services under a single legislation and expanding the scope of regulated services. On 6 June 2019, MAS issued a consultation paper on Proposed Payment Services Notices on Prevention of Money Laundering and Countering the Financing of Terrorism, providing further guidance on the requirements of licence holders relating to Anti-Money Laundering and Countering the Financing of Terrorism. This Update looks at the proposed notices and the new requirements which MAS seeks to introduce.

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