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LEGAL UPDATES |
Legislation
Supreme Court of Judicature Act and Rules of Court - Interest Rate on Money Lodged in Court
In exercise of the powers conferred by
O 90, r 6(1) of the Rules of Court (R 5), the Minister for Finance has fixed the rate of interest to be paid on money lodged in court at 0.1 per cent per annum, with effect from 1 April 2010.
Consumer Protection (Fair Trading) (Amendment) Act (Commencement) Notification 2010 (S155/2010)
Pursuant to the Consumer Protection (Fair Trading) (Amendment) Act (Commencement) Notification 2010, the provisions of the Consumer Protection (Fair Trading) Act (the “CPFTA”) will be extended to financial products and financial services regulated under the Moneylenders Act with effect from 1 April 2010.
Following this change, consumers will have the option of seeking redress and civil remedies under the CPFTA for unfair practices by financial institutions. The CPFTA covers aspects of unconscionable conduct (such as harsh, oppressive or excessively one-sided terms of agreement, and exerting undue pressure or undue influence on a consumer) that are not covered by the Moneylenders Act.
The CPFTA had first been extended to financial products and financial services when its provisions were applied pursuant to the Consumer Protection (Fair Trading) (Amendment) Act 2008 (the “Amendment Act”) to products and services regulated under the following statutes on 15 April 2009:
• Banking Act
• Commodity Trading Act
• Finance Companies Act
• Financial Advisers Act
• Insurance Act
• Section 28 of the Monetary Authority of Singapore Act
• Money-changing and Remittance Businesses Act
• Securities and Futures Act
The CPFTA will eventually be extended to cover financial products and financial services regulated under the Pawnbrokers Act. A separate commencement notification will be issued for this purpose.
Stamp Duties (Amendment) Bill 2010 (B6/2010)
The Stamp Duties (Amendment) Bill 2010 (B6/2010) (the “Bill”) was introduced as an Urgent Bill on 12 March 2010, and read the second and third time on 12 March 2010.
The changes to the Stamp Duties Act are deemed to have come into operation on 20 February 2010.
On 19 February 2010, the Government re-introduced the seller’s stamp duty on all residential properties and residential lands transferred on or after 20 February 2010, and disposed within one year of transfer. The seller’s stamp duty is levied at the same rates as the buyer’s stamp duty, as specified in the First Schedule of the Stamp Duties Act. The rates are 1 per cent on the first $180,000 of consideration or market value whichever is higher, followed by 2 per cent on the next $180,000, and 3 per cent on the balance.
The Bill gives legislative effect to this reintroduction of the seller’s stamp duty. The Bill introduces general provisions on a seller’s stamp duty and allows the Government to introduce, vary or remove the seller’s stamp duty via a Ministerial Order.
Code of Practice for Market Conduct in the Provision of Media Services (S148/2010)
On 12 March 2010, the Media Authority Development of Singapore (the “MDA”) gazetted the revised Code of Practice for Market Conduct in the Provision of Media Services (the “2010 Code”), following its first triennial review of the Media Market Conduct Code 2003 in 2007. The 2010 Code took effect from 8.30am on 12 March 2010 and revokes the Media Market Conduct Code 2003 (the “2003 Code”).
The Code is intended to:
1. enable and maintain fair market conduct and effective competition in Singapore’s media industry;
2. ensure the availability of a comprehensive range of quality media services in Singapore;
3. encourage industry self-regulation in Singapore’s media industry;
4. foster further investment in, and the development of Singapore’s media industry; and
5. safeguard the public interest.
Government Securities (Amendment) Act 2010 (A2/2010)
From 1 April 2010, the Government Securities Act (the “Act”) will be amended primarily for the following purposes:
1. Expressly empowering the Monetary Authority of Singapore (the “MAS”) to regulate primary dealers. Towards this end, a regulatory framework for the MAS’ appointment and regulation of primary dealers is introduced in the Act. The new provisions also allow the MAS to issue directions to, revoke the appointment of, suspend and inspect the primary dealers;
2. Allowing early redemption of Singapore Government Securities (“SGS”); and
3. Allowing the MAS to enter into securities lending arrangements using SGS. To facilitate market-making, the MAS currently operates a sale-and-repurchase or commonly referred to as a repo facility that lends SGS to primary dealers on an overnight basis when the SGS are not readily available from other sources. This arrangement is now formalised in the Act.
The changes are brought about by the Government Securities (Amendment) Act 2010 which was read the third time and passed in Parliament on 11 January 2010.
Elizabeth Wong
Allen & Gledhill LLP