New Subsidiary Legislation

Securities Industry (Amendment No 2) Regulations 2001 (S545/2001)

With effect from 31 October 2001, the definitions of 'initial public offer' and 'issuer' in Reg 37A of the Securities Regulations (pertaining to exemption for stabilising action during initial public offer) have been amended.

The term 'initial public offer' is now defined as follows:
'initial public offer', in relation to securities, means the first public offer for subscription or sale of securities in conjunction with the listing of the securities for quotation on the Exchange.

Prior to the amendment, the definition provided as follows:
'initial public offer', in relation to securities, means the first public offer for subscription or sale of securities of a corporation in conjunction with the listing of its securities on the Exchange.

The term 'issuer' is now defined as follows:
'issuer', in relation to an initial public offer, means the person who issues the securities that are being listed or, where the securities have been issued, the person who makes the offer to sell those securities.

Prior to the amendment, the definition read as follows:
'issuer', in relation to an initial public offer, means the corporation the shares of which are being issued and listed or where the shares have been issued, the person making the offer to sell those shares.

There is now also defined the term 'prospectus' which reads as follows:
'prospectus' includes any document deemed to be a prospectus under the Companies Act (Cap 50).

Property Tax (Non-residential Buildings) (Remission) (No 2) Order 2001 (S553/2001)
The Property Tax (Non-residential Buildings) (Remission) (No 2) Order 2001 implements the off-budget measure announced on 12 October 2001 in relation to property tax rebates for non-residential buildings.

The July 2001 off-budget package included a 25% property tax rebate for commercial and industrial properties for one year with effect from 1 July 2001.
Instead of the 25% rebate, it was announced on 12 October 2001 that the government will give a fixed rebate of up to $8,000 per year to all commercial and industrial properties, plus a further rebate of 30% for any balance property tax payable. The new rebate scheme will take effect from 1 July 2001 and end on 31 December 2002.

Property Tax (Exemption of Land under Development) (Off-budget) Order 2001 (S557/2001)

The Property Tax (Exemption of Land under Development) (Off-budget) Order 2001 implements the off-budget measure announced on 12 October 2001 in relation to property tax exemption for land under development.

In 1998, the government allowed property tax exemption for land under development in view of the difficulties faced by the property sector. This measure was withdrawn in the Budget Statement of 2000 when the property market showed signs of recovery and transaction volume picked up.

This measure will be reinstated with effect from 12 October 2001. However, the property tax exemption will be given for a period of two years instead of five years.
Projects that start foundation works on or before 12 October 2001 will qualify for exemption from property tax from 12 October 2001 until 11 October 2003 or the date of issue of the Temporary Occupation Permit ('TOP') or, where TOP is not issued, the date of issue of the Certificate of Statutory Completion ('CSC') for the building, whichever is the earlier.

For projects where the foundation works commenced after 12 October 2001, the period of exemption will start from the date of commencement of the foundation works until 11 October 2003 or the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC for the building, whichever is the earlier.

United Nations Act 2001 (Act 44/2001) and United Nations (Anti-terrorism Measures) Regulations 2001 (S561/2001)

On 28 September 2001, the Security Council of the United Nations adopted United Nations Security Council Resolution 1373 (2001) ('the Resolution') which calls upon the member states of the United Nations to implement a series of measures against terrorism and the financing of terrorism following the 11 September terrorist attacks on the United States of America. The resolution, passed under Chapter VII of the United Charter, is binding on Singapore, a member of the United Nations.

To implement the mandatory requirements of the Resolution in Singapore, the United Nations Act ('UN Act') was enacted and is operative from 29 October 2001. The UN Act enables the government to pass necessary regulations to give effect to the decisions of the Security Council of the United Nations.

Pursuant to the UN Act, the United Nations (Anti-terrorism Measures) Regulations ('Anti-terrorism Regulations') have been enacted to give effect to the Resolution. The Anti-terrorism Regulations came into force on 13 November 2001.

The Anti-terrorism Regulations criminalise the direct or indirect provision of economic or financial assistance to terrorists and provide for specific punishment for perpetrating a hoax of a terrorist act. The Anti-terrorism Regulations apply to any person in Singapore and any Singapore citizen outside Singapore who facilitates terrorist acts committed inside or outside Singapore. The Interpretation Act (Cap 1) defines a 'person' to include any company or association or body of persons, corporate or unincorporated.

Provision of financial assistance to terrorists

The scope of the Anti-terrorism Regulations is wide. It prohibits a person from collecting funds or providing funds, economic resources and financial or related services to terrorists or for the benefit of the terrorists, if he knows or has reasonable grounds to believe that the funds will be used for a terrorist act.

Direct or indirect dealings with property owned by or on behalf of any terrorist or any entity owned or controlled by any terrorist is also prohibited. Any person, including a financial institution, is expressly prohibited from providing financial services or facilitating any financial transaction related to a dealing in such property.
The schedule to the Anti-terrorism Regulations contains a list of 120 persons and organisations that are identified as terrorists.

Section 27A of the Monetary Authority of Singapore Act (Cap 186) ('MAS Act') was amended in 2000 to empower the MAS to issue directions to financial institutions to discharge the government's international obligations. This would include giving directions to the financial institutions to freeze the funds of certain persons, to give information to the United Nations on whether funds of terrorists have come into Singapore, etc. Section 27A(2) of the MAS Act further provides that a financial institution that acts in compliance with the directions of the MAS under s 27A will not be treated as being in breach of any rule of law, written law or contract, such as the banking secrecy rule.

The Anti-terrorism Regulations spare a financial institution that has been served with a direction by the MAS under s 27A of the MAS Act from complying with the regulations, if the regulations are contrary to the direction of the MAS.

The Anti-terrorism Regulations also impose a positive duty on a person to inform the police if he is in possession of property belonging to any terrorist or has any information about any transaction in respect of property belonging to any terrorist. The UN Act grants immunity from legal proceedings to a person who has breached any written law or contract in order to comply with the UN Act or the Anti-terrorism Regulations.

Punishment

The UN Act provides that a person who is convicted of an offence under the Anti-terrorism Regulations shall be liable to a maximum fine of S$100,000 or imprisonment for a maximum term of five years or both.

Elizabeth Wong
Allen and Gledhill