FAQs on Trust Companies Act and Trust Companies Regulations

The Monetary Authority of Singapore (MAS) has issued an updated version of its frequently asked questions (FAQs) relating to the operation of trust companies. The FAQs primarily
– clarify the scope of the Trust Company Act (who does it apply to, who’s exempt from holding a trust license?),
– outline the difference between the Trust Company Act and the Trustees Act,
– describes MAS‘ approach on regulation and supervision of trust companies, and
– sets out requirements pertaining to the licensing of trust companies, the termination of business, and the reporting obligations of such firms.
In this latest revised version, MAS has added new FAQ 20.A which reads as follows – as quoted:
FAQ 20.A: Is approval required from MAS if a licensed trust company wishes to acquire more than 20% of the total issued shares or voting power in a corporation for which the sole purpose of the corporation is to hold shares of or provide nominee directorship services to, underlying investments of trust for which the licensed trust company acts as a trustee for?
Answer: No approval from MAS is required in such circumstances, as the acquisition is made in the course of acting as a trustee.