New Acts

Patents (Amendment) Act 2001 (A30/2001)

One of the amendments introduced by the Patents (Amendment) Act 2001 is the repeal and re-enactment of Part XIX of the Patents Act (Cap 221) comprising ss 104 and 105. Part XIX relates to patent agents. It has now been gazetted (vide S64/2001) that this amendment will come into operation on 2 January 2002.

New s 104 enables rules to be made for additional matters in relation to the registration of patent agents. These rules include powers and procedures relating to disciplinary proceedings against registered patent agents.

New s 105 provides, in addition to the existing requirements relating to the use of the terms 'patent agent' and 'patent attorney', that -

(a) only a registered patent agent, or an advocate and solicitor, with a practising certificate may carry on a business, practise or act as a patent agent; and
(b) a partnership or a body corporate may carry on a business, practise or act as a patent agent only if at least one partner or director, as the case may be, is a registered patent agent, or an advocate and solicitor, with a practising certificate.

It is, however, provided in s 105(5) that s 105 shall not be construed as prohibiting an advocate and solicitor from taking part in proceedings relating to patents and applications for patents.

Central Provident Fund (Amendment) Act (A34/2001)

The Central Provident Fund (Amendment) Act 2001 amends the Central Provident Fund Act with effect from 1 January 2002 for the following purposes:

(a) to allow the Central Provident Fund Board to release information in its possession on the members of the Central Provident Fund, including balances in their medisave accounts to an insurer administering or operating an approved insurance scheme for purposes of administering or operating the insurance scheme; and
(b) to enable members of the Central Provident Fund to withdraw sums from their medisave accounts to pay for premiums under any insurance scheme approved by the Minister for Health.

New Subsidiary Legislation

Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) (Amendment) Order 2001 (S617/2001)

The Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order has been amended with effect from 1 January 2002. Following the amendment, the definition of 'pyramid selling scheme or arrangement' in s 2 of the Multi-Level Marketing and Pyramid Selling Act shall exclude any scheme or arrangement, or any class of such schemes or arrangements, which satisfies the following terms and conditions:

(a) a person shall not be required to provide any benefit or acquire any commodity in order to participate in the scheme or arrangement, other than the purchase of sales demonstration equipment or materials at a price not exceeding their cost which are not for resale and for which no commission, bonus or any other advantage will be given to any person;
(b) any benefit received:

(i) by any promoter of, or participant in, the scheme or arrangement accrues as a result of the sale, lease, licence or other distribution of a commodity to any other person;
(ii) by any promoter of the scheme or arrangement accrues as a result of the performance of one or more participants in relation to the sale, lease, licence or other distribution of a commodity to any other person;

(c) subject to paragraph (b), no benefit shall be received by any person as a result of the introduction or recruitment of one or more persons to be participants in the scheme or arrangement;
(d) a promoter of the scheme or arrangement shall not make, or cause to be made, any representation to any person that benefits will accrue under the scheme or arrangement in a manner other than as specified in paragraph (b);
(e) a promoter of the scheme or arrangement shall, in respect of any representation relating to the actual or potential accrual of any benefit under the scheme or arrangement, maintain fair and accurate records of the maximum, minimum, median, average and mode benefits that have accrued to the promoter and participants in the scheme or arrangement, duly audited by an auditor for each financial year;
(f) a promoter of the scheme or arrangement shall not and shall take reasonable steps to ensure that participants in the scheme or arrangement do not:

(i) knowingly make, or cause or permit to be made, any representation relating to the scheme or arrangement or to the commodity which is false or misleading;
(ii) knowingly omit, or cause or permit to be omitted, any material particular relating to the scheme or arrangement or to the commodity;
(iii) knowingly engage in, or cause or permit, any conduct that is misleading or likely to mislead as to any material particular relating to the scheme or arrangement or to the commodity; or
(iv) in promoting the scheme or arrangement or the commodity, use, or cause or permit to be used, fraud, coercion, harassment, or unconscionable or unlawful means;

(g) the commodity shall be distributed with a full refund or buy-back guarantee that is exercisable by every participant in the scheme or arrangement on reasonable commercial terms and within a period of at least 60 days from the date of distribution of the commodity to the participant; and
(h) every participant in the scheme or arrangement shall be informed in writing, at the time of the distribution of the commodity to the participant, of the existence of the guarantee and the manner in which it can be exercised.

Patents (Patent Agents) Rules 2001 (S645/2001)
 The Patents Act (Cap 221) has been amended with effect from 2 January 2002 to provide that only a registered patent agent with a practising certificate or an advocate and solicitor, may carry on a business, practise or act as a patent agent.

The Patents (Patent Agents) Rules 2001 came into operation from 2 January 2002. The Rules require an individual to be registered with the Registrar of Patents and obtain a practising certificate in order to: (a) carry on a business under any name or description which contains the words 'patent agent' or 'patent attorney'; or (b) to describe himself as a 'patent agent' or 'patent attorney'.

An individual is only entitled to be registered as a patent agent if he:

(a) is resident in Singapore;
(b) holds a university degree or equivalent qualification approved by the Registrar;
(c) has passed a specified course;
(d) has passed a specified examination; and
(e) has completed internship in patent agency work under the supervision of a registered patent agent, or an individual registered as a patent agent or its equivalent in a country or territory or by a patent office, specified in the Fourth Schedule, for:

(i) a continuous period of at least 12 months; or
(ii) a total period of at least 12 months within a continuous period of 24 months.

The Registrar may, upon the written request of an applicant for registration, register the applicant as a patent agent:

(a) if he is satisfied that the applicant is sufficiently proficient in the law of intellectual property;
(b) if he is satisfied that the applicant is sufficiently proficient in the law of patents and has the necessary knowledge and practical experience to carry out patent agency work; and
(c) if he is satisfied that the applicant has the necessary knowledge and practical experience to carry out patent agency work, gained from carrying out such work under the supervision of a registered patent agent, or an individual registered as a patent agent or its equivalent in a country or territory, or by a patent office, specified in the Fourth Schedule.

A registered patent agent who wishes to obtain a practising certificate for any practice year shall, before making an application for the certificate, take out professional indemnity insurance against any liability incurred by him when carrying out patent agency work in that practice year. The amount of insurance cover should be at least $1m for each claim.

The rules provide for disciplinary proceedings against an errant patent agent.

The rules also provide for transitional matters with regard to registration of patent agents, practising certificates and the practice as a patent agent.

Insurance Intermediaries (Amendment) Regulations 2001 (S667/2001)
 The Insurance Intermediaries Regulations have been amended with effect from 1 January 2002 so that the minimum paid-up share capital of a direct life insurance broker shall be $150,000 for the year of 2002 and subsequent years. Prior to the amendment, the requisite minimum paid-up share capital was $200,000, $250,000 and $300,000 for the years 2002, 2003 and 2004 (and subsequent years) respectively.

Securities and Futures Act (Commencement) Notification 2001 (S672/2001)
Pursuant to the Securities and Futures Act (Commencement) Notification 2001 (S672/2001), the following provisions of the Securities and Futures Act 2001 have come into operation from 1 January 2002:

Part I Preliminary (including 'Interpretation', 'Associated Person' and 'Interest in Securities')
Part VIII Securities Industry Council and Take-over Offers
Part IX Supervision and Investigation
Part X Assistance to Foreign Regulatory Authorities
Part XV  Miscellaneous
However, the following provisions in Part XV have not come into force:
  • s 314 - prohibition of use of certain titles;
  • s 342(1) - repeal of Futures Trading Act; and
  • s 342(3) - repeal of Securities Industry Act.
First Schedule  Markets (meaning of 'futures markets' and 'securities markets')
Second Schedule Regulated Activities
Fourth Schedule Consequential Amendments to Other Written Laws
Only the following items in the Fourth Schedule are in force:
  • Item 4(o) - Consequential amendment to s 168(2) of the Companies Act (Cap 50).
  • Item 4(q) - Heading of Part VII of Companies Act (Cap 50) substituted with new heading 'Arrangements and Reconstructions'.
  • Item 7(c) - Amendment of s 11 of Exchanges (Demutualisation and Merger) Act (Cap 99B).

Securities and Futures (Securities Industry Council and Take-over Offers) (Transitional Provisions) Regulations 2001 (S673/2001)
Pursuant to the Securities and Futures Act (Commencement) Notification 2001 (S672/2001), Part VIII of the Securities and Futures Act 2001 (pertaining to Securities Industry Council and Take-over Offers) has come into operation from 1 January 2002.

The new Singapore Code on Take-overs and Mergers (hereinafter referred to as the 'Take-over Code') has also come into force on 1 January 2002.

Pursuant to the Securities and Futures (Securities Industry Council and Take-over Offers) (Transitional Provisions) Regulations 2001 (S673/2001), Part VIII and the Take-over Code shall not apply to a take-over offer or any matter connected therewith if any of the following matters took place before 1 January 2002:

(a) the making of the take-over offer;
(b) the giving of the notice referred to in the repealed s 213(4) of the Companies Act (Cap 50); or
(c) the making of an announcement of the take-over to the public by, or on behalf of, the person making the take-over offer.

For such a take-over or matter, ss 213 and 214 and the Tenth Schedule to the Companies Act (Cap 50) and the Singapore Code on Take-overs and Mergers referred to in s 213(18) of the Companies Act (Cap 50) in force immediately before 1 January 2002 shall continue to apply.

Securities and Futures (Repeal of Provisions) Notification 2001 (S675/2001)
Pursuant to the Securities and Futures (Repeal of Provisions) Notification 2001 (S675/2001), the following provisions have been repealed with effect from 1 January 2002:

(a) Securities Industry Act (Cap 289), s 14 (pertaining to the Securities Industry Council); and
(b) Companies Act, ss 213 and 214 and the Tenth Schedule (pertaining to take-overs).

Elizabeth Wong
Allen and Gledhill