Securities and Futures (Prescribed Debentures) Regulations 2018

No. S 625

Securities and Futures Act

(CHAPTER 289)

Securities and Futures
(Prescribed Debentures)
Regulations 2018

In exercise of the powers conferred by section 341 of the Securities and Futures Act, the Monetary Authority of Singapore makes the following Regulations:

Citation and commencement

1.  These Regulations are the Securities and Futures (Prescribed Debentures) Regulations 2018 and come into operation on 8 October 2018.

Prescribed debentures

2.—(1)  For the purposes of paragraph (c) of the definition of “debenture” in section 2(1) of the Act, “debenture” includes an arrangement —

(a) that is entered into on or after 8 October 2018;

(b) under which —

(i) a person (A) transfers legal title to any amount of any precious metal (called in this regulation the specified precious metal) to another person (B), for consideration given by B;

(ii) at a predetermined time or within a predetermined period after the arrangement is entered into —

(A) B is required to transfer legal title to the same amount of the specified precious metal to A, for a predetermined consideration given by A; or

(B) B may exercise an option to require A to acquire the legal title to the same amount of the specified precious metal from B for a predetermined consideration given by A, whether or not B may only exercise the option on the fulfilment of one or more conditions; and

(iii) the predetermined consideration to be given by A under —

(A) sub‑paragraph (ii)(A); or

(B) sub‑paragraph (ii)(B) upon B’s exercise of the option mentioned in that provision,

is greater than the value of consideration given by B under sub‑paragraph (i); and

(c) that is neither entered into in the ordinary course of B’s business, nor solely incidental to that business.

(2)  In this regulation —

“precious metal” means gold, silver or platinum;

“predetermined consideration” means —

(a) a consideration; or

(b) a consideration that is determined using a formula,

that is fixed as at the time the arrangement mentioned in paragraph (1) is entered into.

Made on 26 September 2018.

RAVI MENON

Managing Director,
Monetary Authority of Singapore.

[CMP MCP 01/2015; AG/LEGIS/SL/289/2015/49 Vol. 1]