Consolidated TPP Text – Annex III – Schedule of Singapore
Headnotes
1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.
2. To clarify Singapore’s commitment with respect to Article 11.5(b) (Market Access for Financial Institutions), juridical persons supplying financial services are subject to non-discriminatory limitations on juridical form.Footnote 1
3.
- (a) Singapore reserves the right to require a foreign bank that is systemically important to incorporate within Singapore, provided that such a requirement is applied in a reasonable, objective and impartial manner. Before imposing such a requirement, Singapore will take into account such factors as the quality of home country regulation and supervision over the bank, degree of protection accorded to depositors in the home country vis-à-vis depositors in Singapore, and the amount of assets held or situated in Singapore.
- (b) Singapore shall not impose the requirement described in subparagraph (a) with respect to a foreign bank of another Party, unless it:
- (i) notifies the bank and the other Party of its intent at least six months before imposing the requirement;
- (ii) consults with the other Party concerning the requirement and gives due consideration to the views expressed by the other Party in this respect; and
- (iii) allows the bank a reasonable time to comply with the requirement.
4. Description sets out the non-conforming measure for which the entry is made.
5. For entries in Section A, in accordance with Article 11.10.1(a) (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the non-conforming measures identified in the Description element of that entry.
6. For entries in Section B, in accordance with Article 11.10.2 (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the sectors, subsectors and activities identified in the Description element of that entry.
Annex III - Section A
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Banking Act, Cap. 19
Guidelines for Operation of Wholesale Banks
Guidelines for Operation of Offshore Banks
Description: No new full bank licences will be granted to foreign banks.
No foreign bank can have more than one place of business, establish off-premise ATMs, establish ATM networking or provide debit services through an Electronic Funds Transfer at Point of Sale (EFTPOS) network.
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; or
- (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 or its successor body are complied with.
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; or
- (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 or its successor body are complied with.
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Finance Companies Act, Cap. 108
Description: No new finance company licences 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).
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Banking Act, Cap. 19
Monetary Authority of Singapore Act, Cap. 186
Guidelines for Operation of Merchant Banks
Description: No merchant bank may establish more than one customer service location.
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Banking Act, Cap. 19
Central Provident Fund Act, Cap. 36
Description: Only foreign banks with Qualifying Full Bank privileges and local banks may apply to provide Supplementary Retirement Scheme accounts and Central Provident Fund Investment Scheme accounts.
Only foreign banks with Qualifying Full Bank privileges and local banks may apply to accept fixed deposits under the Central Provident Fund Investment Scheme and Minimum Sum Scheme.
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: National Treatment (Article 11.3)
Level of Government: Central
Measures: Banking Act, Cap. 19
Monetary Authority of Singapore Act, Cap. 186
Description: No foreign person shall, acting alone or in concert with other persons, assume control of any Singapore-incorporated bank or its financial holding company which is regulated by the Monetary Authority of Singapore (other than a Singapore-incorporated bank or financial holding company that is controlled by a financial institution of another Party).
Approval from the Minister is required before a person, either alone or together with associated persons, is allowed to acquire indirect control over and shareholdings or voting control of or exceeding five per cent, 12 per cent or 20 per cent in a Singapore-incorporated bank or a financial holding company, and before a Singapore-incorporated bank or a financial holding company is merged or taken over by any other body.
In approving applications to exceed the threshold limits, the Minister may impose conditions that are considered necessary to prevent undue control, protect public interests, and ensure the integrity of the financial system.
A foreign person 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.
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)
Level of Government: Central
Measures: Banking Act, Cap. 19, MAS Notice No. 622
Banking (Corporate Governance) Regulations
Description: A majority of the directors of a bank incorporated in Singapore must be either Singapore citizens or Singapore permanent residents.
Sector: Financial Services
Sub-Sector: Settlement and clearing services for financial assets
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Banking Act, Cap. 19
Description: Only the clearing house established under the Banking Act may provide clearing services for cheques and other credit instruments which are drawn on a bank in Singapore (whether payable in Singapore dollars or other currency), and services for interbank GIRO transfers.
Sector: Financial Services
Sub-Sector:
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Securities and Futures Act, Cap. 289
Description: The establishment or operation of securities and futures markets as approved exchanges, recognised market operators or exempt market operators, is subject to the authorisation, including the imposition of conditions for authorisation, by the Monetary Authority of Singapore or its successor body. In authorising such markets or in imposing conditions on the operations of such markets, Singapore may take into account factors including, but not limited to, market structure, fragmentation of liquidity, range of products offered and the type of investors targeted.
Sector: Financial Services
Sub-Sector: Asset management
Obligations Concerned: National Treatment (Article 11.3)
Level of Government: Central
Measures: Admission Criteria, Guidelines and Application Forms for Fund Management and Insurance Companies included under Central Provident Fund Investment Scheme (CPFIS)
Description: In considering the admission of Fund Management Companies (FMCs) under the CPFIS, the Central Provident Fund Board 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 licence holder under the Securities and Futures Act, Cap. 289, in the fund management industry in Singapore while the group as a whole has a minimum three-year track record in fund management;
- (b) whether the FMC manages at least S$500 million worth of funds in Singapore; and
- (c) whether the FMC has a minimum of three fund managers, one of whom must have at least five years of fund management experience. For the purpose of this reservation, the definition of “fund manager” shall include portfolio managers, research analysts and traders.
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
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Banking Act, Cap. 19
Description: Banks’ and merchant banks’ membership on any securities exchange or futures exchange established in Singapore must be held through subsidiaries incorporated in Singapore.
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
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Companies Act, Cap. 50
Description: Only the Central Depository Pte Ltd or its successor body is authorised to provide custodial services for book-entry securities.
Sector: Financial Services
Sub-Sector: Payment and non-money transmission services
Obligations Concerned: National Treatment (Article 11.3)
Level of Government: Central
Measures: Money-Changing and Remittance Businesses Act, Cap. 187
Description: 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 per cent shareholding.
Sector: Financial Services
Sub-Sector: Insurance
Obligations Concerned: National Treatment (Article 11.3)
Level of Government: Central
Measures: Admission Criteria, Guidelines and Application Forms for Fund Management and Insurance Companies included under Central Provident Fund Investment Scheme (CPFIS)
Description: In considering the admission of insurers under the CPFIS, the Board takes into consideration the following factors:
- (a) whether the insurer is registered under the Insurance Act to carry on life insurance business;
- (b) whether the insurer has a minimum one-year track record as a registered insurer in Singapore;
- (c) whether the insurer employs a minimum of three fund management staff, one of whom have at least five years of fund management experience. The other two may only have two years of fund management experience if he or she:
- (i) is a fully qualified Chartered Financial Analyst (CFA);
- (ii) is an Associate of the Society of Actuaries;
- (iii) holds a Certificate in Finance and Investments from the Institute of Actuaries; or
- (iv) holds an equivalent qualification from any of the professional actuarial bodies recognised in Singapore.
Note: The above listed are the basic criteria for insurers to be included under CPFIS. The Board, in consultation with the Monetary Authority of Singapore, may consider an applicant for admission, on a 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.
Sector: Financial Services
Sub-Sector: Insurance
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Insurance Act, Cap. 142
Description: All insurance brokers must be established as Singapore-incorporated companies.
Sector: Financial Services
Sub-Sector: Insurance
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Measures: Insurance Act, Cap. 142
Description: Captive insurers may only establish as Singapore-incorporated companies.
Sector: Financial Services
Sub-Sector: Insurance
Obligations Concerned: Cross-Border Trade (Article 11.6)
Level of Government: Central
Measures: Motor Vehicles (Third Party Risks and Compensation) Act, Cap. 189
Work Injury Compensation Act, Cap. 354
Description: Compulsory insurance of Motor Third Party Liability and Workmen’s Compensation can only be purchased directly or through an intermediary from registered insurers in Singapore.
Sector: All
Sub-Sector:
Obligations Concerned: Cross-Border Trade (Article 11.6)
Level of Government: Central
Measures: Financial Advisers Act, Cap. 110
Insurance Act, Cap. 142
Description: The placement of domestic risks 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 a maritime mutual insurer, or marine, aviation and transit business insured with an approved MAT insurer.
Sector: All
Sub-Sector:
Obligations Concerned: Cross-Border Trade (Article 11.6)
Level of Government: Central
Measures: Banking Act, Cap. 19, MAS Notice 757
Monetary Authority of Singapore Act, Cap. 186, MAS Notice 1105
Finance Companies Act, Cap. 108, MAS Notice 816
Insurance Act, Cap. 142, MAS Notice 109
Securities and Futures Act, Cap. 289, MAS Notice SFA 04-N04
Description: A non-resident financial institution may in certain circumstances be unable to borrow in Singapore dollars more than S$5 million from a resident financial institution owing to the following restrictions placed on financial institutions’ lending of the Singapore dollar to non-resident financial institutions.
A financial institution shall not extend to any non-resident financial institution Singapore dollar credit facilities exceeding S$5 million per non-resident financial institution:
- (a) where the Singapore dollar proceeds are to be used outside of Singapore, unless:
- (i) such proceeds are swapped or converted into foreign currency upon draw-down or before remittance abroad; or
- (ii) such proceeds are for the purpose of preventing settlement failures where the financial institution extends a temporary Singapore dollar overdraft to any vostro account of any non-resident financial institution, and the financial institution takes reasonable efforts to ensure that the overdraft is covered within two business days; and
- (b) where there is reason to believe that the Singapore dollar proceeds may be used for Singapore dollar currency speculation, regardless of whether the Singapore dollar proceeds are to be used in Singapore or outside of Singapore.
A financial institution shall not arrange Singapore dollar equity or bond issues for any non-resident financial institution where the Singapore dollar proceeds are to be used outside Singapore, unless the proceeds are swapped or converted into foreign currency upon draw-down or before remittance abroad.
“Non-resident financial institution” means any financial institution which is not a resident as defined in the relevant notice.
Sector: All
Sub-Sector:
Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)
Level of Government: Central
Measures: Companies Act, Cap. 50
Description: Every Singapore-incorporated company shall have at least one director who is ordinarily resident in Singapore.
Annex III - Section B
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Description: Singapore reserves the right to adopt or maintain any measure affecting the supply of services by foreign banks with Qualifying Full Bank privileges, save that any such measures shall not decrease the Qualifying Full Bank privileges in respect of the supply of services enjoyed by foreign banks with Qualifying Full Bank privileges as of the date of entry into force of this Agreement.
Existing Measures: Banking Act, Cap. 19, MAS Notice 619
Sector: Financial Services
Sub-Sector: Settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Description: Singapore reserves the right to adopt or maintain any measure affecting the supply of clearing and settlement services for exchange traded securities, financial futures and interbank transfers.
Existing Measures: Companies Act, Cap. 50
Securities and Futures Act, Cap. 289
Sector: Financial Services
Sub-Sector: Social services
Obligations Concerned: Market Access for Financial Institutions (Article 11.5)
Cross-Border Trade (Article 11.6)
Level of Government: Central
Description: Singapore reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and the following services to the extent that they are social services established or maintain for a public purpose: income security and insurance, social security, social welfare, social development, poverty reduction, public education, public training, health and childcare.
Existing Measures:
Sector: Financial Services
Sub-Sector:
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Description: Singapore reserves the right to adopt or maintain any measure in the form of subsidies or grants provided by Singapore that affects the supply of any financial service by any financial service supplier, which Singapore deems necessary:
- (a) for the development of local small and medium enterprises; or
- (b) to facilitate or enable the supply of any service to Singapore enterprises that is not being supplied in Singapore or that is not being supplied efficiently.
Existing Measures:
Sector: Financial Services
Sub-Sector:
Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)
Level of Government: Central
Description: Singapore reserves the right to adopt or maintain any measure in the form of subsidies or grants provided by Singapore in connection with the supply of any financial service involving what Singapore deems as systemically important financial markets infrastructure, including:
- (a) exchanges;
- (b) central depositories;
- (c) repositories;
- (d) clearing and settlement facilities; and
- (e) market operators.
Existing Measures:
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)
Level of Government: Central
Description:
1. Subject to paragraph 2, the obligation under Article 11.4 (Most-Favoured-Nation Treatment) shall only apply to differential treatment that is accorded to a country pursuant to a bilateral or multilateral international agreement that is signed and enters into force after the date of entry into force of this Agreement for Singapore and that is not pursuant or related to, or under any prior international agreements which Singapore has with that country.
2.Singapore reserves the right to adopt or maintain any measure that accords preferential treatment to the European Union pursuant to the European Union – Singapore Free Trade Agreement, initialled on 20 September 2013, including any subsequent amendments.
Existing Measures:
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