8 October, 2016
Enhancements to Regulatory Requirements on Protection on Customer's Moneys and Assets
In recent times, financial crises like the Lehman Brothers and MF Global insolvencies have brought the issue of protection of client assets to the forefront. As a result of these events, investors are now trying to better understand the potential implications of placing their assets with intermediaries. Regulators, such as the Monetary Authority of Singapore ("MAS"), are also looking for ways to address potential risks to client assets and how to transfer or return client assets in case of default, resolution or insolvency scenarios.
MAS has undertaken a review of the regulatory requirements governing the protection of customers' moneys and assets and is proposing to enhance those relating to the safeguarding, identification and use of customer's moneys and assets, and disclosures to customers and has come up with several proposals, which are contained in the Consultation Paper on Enhancements to Regulatory Requirements on Protection of Customer's Moneys and Assets that was published on 18 July 2016. The consultation period ended on 19 August 2016.
Social Media Marketing Guidelines – Influencers to Disclose Sponsorships
The Advertising Standards Authority of Singapore ("ASAS"), the self-regulatory watchdog of the advertising industry in Singapore, has published the new Guidelines on Interactive Marketing Communications & Social Media ("Guidelines"), which are aimed at setting ethical standards of conduct for digital marketing communications, with a focus on social media marketing. The Guidelines came into effect on 29 August 2016, and marketers and media owners were given until 29 September 2016 to comply. The Guidelines were released in response to the recent spate of controversies and public complaints that the ASAS had received in relation to misleading or inaccurate online marketing communications.
Suspicious Transaction Reports and the Indonesia Tax Amnesty
Recent statements by the Monetary Authority of Singapore ("MAS") have cast the spotlight on the need for banks to file a Suspicious Transaction Report ("STR") in respect of clients who participate in the Indonesia tax amnesty programme. The Indonesian Tax Amnesty Bill was passed on 1 July 2016. Under the tax amnesty contemplated under Tax Law 11/2016, participating taxpayers would have their tax liabilities (including administrative and criminal sanctions) waived upon payment of a redemption charge, which would depend on the timeframe within which declaration is made, whether the declared assets are onshore or offshore and whether the offshore assets are repatriated to Indonesia.
A close reading of the applicable statutory provision suggests that the mere fact of participation in a tax amnesty programme may not in and of itself trigger an obligation to lodge an STR under section 39 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act ("CDSA").
Employment Claims Tribunal
The Employment Claims Bill was passed on 16 August 2016 and it provides for a new forum for the resolution of salary-related disputes between employers and employees – the Employment Claims Tribunal ("ECT"). The ECT will be available to professionals, managers and executives earning more than $4,500 a month, who form an increasing proportion of Singapore's workforce. Currently, this group of persons do not have recourse to a specialised employment disputes forum, and have to resort to the civil courts for their claims.
Proposals on Activity-based Payments Framework and New National Payments Council
On 19 August 2016, Mr Ravi Menon, the Managing Director of the Monetary Authority of Singapore ("MAS") delivered a keynote address on "An Electronic Payments Society", setting out the roadmap for the future electronic payments roadmap in Singapore. This was followed by MAS issuing a consultation paper on 25 August 2016, setting out proposals for a new activity-based e-payments framework and the establishment of a National Payments Council to foster competition and collaboration in the payments industry. The consultation ends on 31 October 2016.
Natural Justice in Arbitral Awards
The vast majority of challenges to arbitral awards involve allegations of breach of natural justice, but few are actually successful. JVL Agro Industries Ltd v Agritrade International Pte Ltd provides a rare example of a case where an arbitral award was successfully set aside on this ground. This landmark case is the first reported decision in which the Singapore High Court has gone on to set aside an arbitral award after remitting the matter back to the arbitral tribunal.
For further information, please contact:
Eng Beng SC, Partner, Rajah & Tann
eng.beng.lee@rajahtann.com
