Licensed bank to issue SVF

1. Although licensed banks are deemed to be authorized for the issuance of SVF, they are nevertheless required to notify the Central Bank in writing if they plan to issue an SVF and carry out the SVF business. A “No Objection” letter is required from the Central Bank before the licensed bank concerned can commence the SVF business.

Preliminary meeting with the Central Bank

2. Any company that is interested in obtaining a License may obtain the Application form from the Licensing Division of the Central Bank.
    
3. The Senior Management of the company is strongly encouraged to meet and discuss the SVF business plan with the Central Bank before submitting a formal Application.

Consultation with home regulator

4. Where the Controlling Shareholder of the Applicant is regulated by another authority, including by authorities in other jurisdictions, the Central Bank may contact the relevant authority about the Applicant. The Central Bank may take into account the relevant authority’s views in respect of matters such as the financial soundness and the overall internal control environment of the Controlling Shareholder, and whether the relevant home regulator has any concern about that Controlling Shareholding extending its SVF business to the State.

Completing and submitting the Application

5. The Application must be lodged with the Central Bank with the completed form and the required documents as set out in the Annex.

Processing of Application

6. The Central Bank may seek additional information from the Applicant to reach a decision on the Application. The circumstances of each particular Application will dictate the additional information required. Specifically, the applicant is required to submit a report of independent assessments as set out in paragraphs 5 and 6 of Article (3) of this Regulation. The validity of the assessment report should not exceed six months after the report’s sign-off date.
    
7. Incomplete information may result in delays. Applicants should, therefore, pay attention to the following points:
    
   1. 7.1. All Applications must be submitted with documents and information listed in the Annex. The Applicant will be informed in writing that the Application is complete and the processing of the Application will begin;
       
   2. 7.2. Where an Application received is incomplete or supporting documents or information is lacking, the Applicant will be informed in writing that the Application will be treated as “draft” and will be asked to complete the Application or provide the missing information by a date specified by the Central Bank. Once a properly completed Application with all necessary supporting documents and information is received, the Applicant will be notified in writing that Application is complete and the processing of the Application will begin;
       
   3. 7.3. Where information requested is not received by the specified date or a revised date agreed in writing by the Central Bank at the request of the Applicant, the Application may be treated as “suspended” and the Applicant will be notified of this in writing;
       
   4. 7.4. Where an Application is “suspended”, the Applicant will be informed in writing that the processing of the Application will cease temporarily. Suspended Applications will be reactivated only when the outstanding information is submitted; and
       
   5. 7.5. Where an Application is “suspended” for 6 months or more for any reasons, a new Application will generally be required if the Applicant wishes to pursue the matter further.

Approval of Application

8. The Central Bank may approve an Application for the License made by the Applicant provided that all the licensing criteria can be met by the Applicant.
    
9. The Central Bank may grant the License without conditions or subject to any conditions attached. Conditions attached to a License may include, among others, imposing a higher level of capital requirement, restrictions on the SVF business or any secondary or ancillary businesses, requirements relating to protection of the Float, and restrictions as to the maximum amount of value that may be stored on an SVF, etc.
    
10. If the Central Bank grants a License to the Applicant, the Central Bank will:
     
    1. 10.1. assign a unique reference number to the License; and
        
    2. 10.2. specify in the License the date on which the License is to take effect.
        
11. Specifically, a Licensee must ensure that the License reference number of the License is clearly displayed in the Licensee’s website and promotional materials.