Regulatory Alerts2012-04-30
Added
Notice 812 Financing of Trade and Inventory
The Monetary Authority of Singapore issued Notice 812 to regulate finance companies engaging in trade and inventory financing under the Finance Companies Act. The notice permits such activities only if letters of credit are opened on D/P terms for import goods and explicitly prohibits extending facilities to related or affiliated entities. This directive supersedes and cancels previous notices and circulars dated 1973, 1977, and 1981.
MAS 812 1 December 1983 NOTICE TO FINANCE COMPANIES FINANCE COMPANIES ACT, CAP 191 FC Notice 12 dated 1 November 1973 and 9 February 1977 and BFID Circular No. 20/81 dated 28 September 1981 are cancelled. Financing of Trade and Inventory Finance companies may engage in the financing of trade and inventory subject to the following conditions:- (a) Letters of credit are opened on D/P terms on behalf of customers to cover imports of goods. (b) Facilities are not extended to related or affiliated companies of the finance company or to firms or companies in which the finance company or its directors and managers have interests. Last modified on 19/3/2007