The Legal 500

The Singapore Exchange (SGX) has proposed some significant initiatives to the offer structure relating to initial public offerings (IPOs).

Following on from our July 2013 issue, the Singapore Exchange ( SGX ) has recently announced that it will be introducing circuit breakers in the securities market from 24 February 2014 as an additional market safeguard.

The Ministry of Home Affairs of Singapore ( MHA ) recently issued a public consultation paper seeking feedback on its proposals to restrict remote gambling in Singapore. Whilst the provision of gambling is prohibited in Singapore under the Common Gaming Houses Act and the Betting Act (unless specifically permitted by way of a licence or exemption), these laws do not expressly apply to remote gambling as they were enacted before the internet era.

The prospect of litigating in the local courts of one's counterparty can induce fear. Those courts may be perceived as inefficient or costly; their substantive and procedural laws may be unfamiliar or unpredictable in application; or their judiciary might not be (at least from one party's point of view) competent. Worst of all is the possibility of home-court bias against the foreign party: " there is little use in going to law with the devil while the court is held in hell ". [1]

The Singapore Exchange ( SGX ) announced on 7 February 2014 that it is enhancing its regulatory tools in line with international standards, by refining its query process and introducing new requirements. The following is a summary of these enhancements which will take effect from 3 March 2014.

Singapore, like many common law jurisdictions, permits a person to recover costs incurred in pursuing or defending a cause of action. At the risk of over-simplification, the winner is entitled to recover its costs from the loser. However, the amount of costs that the court orders the losing party to pay in a commercial case is subject to review by the court. In international arbitration, tribunals may also award costs to the winning party but, in contrast to litigation, the amount awarded is not subject to a court's review.

On 28 November 2013, the Monetary Authority of Singapore ( MAS ) released its Consultation Paper on the Review of the Banking Act ( Consultation Paper ). These proposed amendments aim to strengthen MAS' supervisory oversight over banks and codify MAS' expectations as to the risk management policies that banks should have in place. A public consultation is open until 15 January 2014.

On 2 January 2014, the Personal Data Protection Act 2012 ( PDPA ) came into force. It is concerned with, among other things, messages advertising or promoting goods or services, or a business or investment opportunity. Those messages are called "specified messages". Any business that intends to send such messages to a Singapore telephone number must check if that number is listed in the Do Not Call Registry ( DNC Registry ). If it is, such messages cannot be sent, unless the subscriber in question has given clear and unambiguous consent to receive them. Failure to comply with the PDPA is a criminal offence, punishable by a fine of up to S$10,000.

 

The Ministry of Finance ( MOF ) and the Accounting and Corporate Regulatory Authority ( ACRA ) are seeking public feedback on the second part of the draft Companies (Amendment) Bill covering legislative amendments in respect of foreign companies and other aspects of the Companies Act of Singapore. Public feedback is also being sought in respect of three new areas.

The Singapore Exchange ( SGX ) and the China Securities Regulatory Commission ( CSRC ) announced on 25 November 2013 that they will be establishing a direct listing framework which will allow for Chinese companies to list in Singapore.