Companies Act to Allow Re-domiciliation Into Singapore
On 26 October 2016, the MOF and the ACRA proposed to amend the Companies Act to allow for inward re-domiciliation of companies. This will allow a foreign company to re-domicile as a Singapore company by registration with ACRA provided that it meets prescribed requirements. The re-domiciliation will not require the incorporation of a new company or the transfer of assets. The proposal only covers inward re-domiciliation and outward re-domiciliation may be considered in future.
Slew of Amendments to the Securities and Futures Regime to Be Passed
On 7 November 2016, the Securities and Futures (Amendment) Bill underwent its first reading in Parliament. When passed and brought into force, it will amend the definitions of institutional and accredited investors, expand the definition of collective investment schemes to include schemes where contributions and profits are not pooled, introduce a regulatory regime for financial benchmarks and impose new obligations to report short-selling positions, in addition to a range of other changes.
Third Party Funding of International Arbitration to Be Permitted in Singapore
The Singapore Government will permit third party funding of international arbitration pursuant to amendments to the Civil Law Act. When passed, the Civil Law (Amendment) Bill will abolish the tort/crime of champerty and maintenance. A contract for champerty and maintenance will be unenforceable unless expressly permitted under regulations to be issued.
Proposed Amendments to the CIS Code
The MAS has proposed amendments to the Code on Collective Investment Schemes in a Consultation Paper issued on 10 November 2016. It sets out a proposed set of rules for funds of precious metals. A range of smaller amendments have also been proposed for prospectuses and for REITs, among other things.
Super-Priority Financing to Be Available for Companies in Distress
Recent proposed changes to the insolvency regime in the Companies Act should be noted by banks and other lenders as having an impact on priority and enforcement processes. In particular, the proposed regime for super-priority for rescue financing and the adoption of the UNCITRAL Model Law on Cross-Border Insolvency will be of interest.
