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.

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:

Offshore banks

Offshore banks are not permitted to:

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:

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:

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:

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 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:

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:

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:

Date Modified: