Statute Details
- Title: Securities and Futures (Exemption of Fortune Real Estate Investment Trust) Regulations 2019
- Act Code: SFA2001-S697-2019
- Type: Subsidiary Legislation (SL)
- Authorising Act: Securities and Futures Act (Cap. 289)
- Enacting Power: Section 337(1) of the Securities and Futures Act
- Commencement: 22 October 2019
- Legislative Instrument No.: S 697/2019
- Status: Current version as at 27 March 2026 (per provided extract)
- Key Provisions (from extract): Regulation 1 (Citation and commencement); Regulation 2 (Exemption)
- Primary Subject Matter: Exemption from a statutory wind-up obligation following withdrawal of MAS authorisation for Fortune Real Estate Investment Trust
What Is This Legislation About?
The Securities and Futures (Exemption of Fortune Real Estate Investment Trust) Regulations 2019 is a narrowly targeted piece of subsidiary legislation. In plain terms, it provides a specific regulatory exemption for Fortune Real Estate Investment Trust (“Fortune REIT”) in relation to a particular statutory consequence under the Securities and Futures Act (the “SFA”).
Under the SFA, certain investment products and their responsible persons are subject to regulatory oversight by the Monetary Authority of Singapore (“MAS”). Where MAS withdraws authorisation of a real estate investment trust (REIT), the SFA generally requires the “responsible person” to take steps to wind up the REIT. This is a protective mechanism: it ensures that when authorisation is removed, the product does not continue operating in a manner that would undermine the regulatory framework.
This 2019 Regulations modifies that outcome for Fortune REIT. Specifically, it exempts the responsible person for Fortune REIT from the SFA’s wind-up requirement that would otherwise be triggered by MAS’s withdrawal of authorisation. The Regulations therefore addresses a particular compliance and transition issue: it allows Fortune REIT to avoid an immediate statutory wind-up step, presumably to facilitate a different resolution pathway consistent with the circumstances leading to the withdrawal of authorisation.
What Are the Key Provisions?
Regulation 1 (Citation and commencement) sets out the formal name of the instrument and when it takes effect. The Regulations are cited as the “Securities and Futures (Exemption of Fortune Real Estate Investment Trust) Regulations 2019” and come into operation on 22 October 2019. For practitioners, commencement is critical because it determines whether the exemption is available at the time MAS withdraws authorisation or when the responsible person is required to act under the SFA.
Regulation 2 (Exemption) is the operative provision. It states that the responsible person for Fortune REIT is exempted from the requirement under section 295(2) of the SFA to take the necessary steps to wind up Fortune REIT following the withdrawal of MAS’s authorisation of Fortune REIT under section 288(7) of the SFA.
In practical terms, the provision creates a legal “exception” to the default statutory consequence. The SFA’s general rule (as referenced in section 295(2)) is that once MAS withdraws authorisation under section 288(7), the responsible person must take necessary steps to wind up the REIT. Regulation 2 overrides that specific obligation for Fortune REIT. The exemption is not framed as a discretionary power for the responsible person; rather, it is a direct statutory exemption granted by the Regulations.
Two elements are particularly important for legal analysis and compliance planning:
- Trigger event: the exemption applies when MAS withdraws authorisation under s 288(7) SFA. If the authorisation is not withdrawn under that specific provision, the exemption may not be engaged.
- Obligation being exempted: the exemption relates to the wind-up requirement under s 295(2) SFA. It does not necessarily speak to other obligations that might arise from withdrawal of authorisation (for example, reporting, investor communications, or other regulatory steps), unless those obligations are also expressly modified by the Regulations or by other instruments.
Finally, the Regulations are “made” by MAS on 3 October 2019, signed by Ravi Menon, Managing Director of MAS. The enacting formula confirms that MAS acted under the statutory power in s 337(1) SFA. For practitioners, this is relevant when assessing the legal basis for the exemption and the scope of MAS’s delegated regulatory authority.
How Is This Legislation Structured?
This Regulations is extremely concise and consists of an enacting formula and two regulations:
- Regulation 1: Citation and commencement.
- Regulation 2: The substantive exemption from the wind-up requirement for Fortune REIT.
There are no additional parts, schedules, definitions, or procedural provisions in the extract provided. The structure reflects the instrument’s purpose: it is not a comprehensive regulatory framework, but a targeted legal adjustment to a specific statutory consequence under the SFA.
Who Does This Legislation Apply To?
The Regulations applies to the responsible person for Fortune Real Estate Investment Trust. The “responsible person” concept is used in the SFA framework for REITs and other regulated collective investment schemes. In practice, the responsible person is the entity that has statutory duties in relation to the REIT’s compliance and regulatory status.
Importantly, the exemption is product-specific and event-specific. It is not a general exemption for all REITs, nor is it a general waiver of all consequences of authorisation withdrawal. It is limited to the wind-up obligation under section 295(2) that would otherwise follow MAS’s withdrawal of authorisation under section 288(7).
Why Is This Legislation Important?
Although the Regulations contains only one substantive provision, it can have significant legal and commercial consequences. Wind-up requirements are often time-sensitive and can trigger a cascade of actions: cessation of business activities, appointment of liquidators or trustees, valuation and distribution of assets, investor communications, and potential tax and accounting impacts. By exempting Fortune REIT’s responsible person from the statutory wind-up obligation, the Regulations alters the immediate legal pathway after authorisation withdrawal.
From a practitioner’s perspective, the key importance lies in understanding how this exemption interacts with the SFA’s broader regulatory architecture. MAS’s withdrawal of authorisation under section 288(7) would ordinarily lead to a mandatory wind-up under section 295(2). Regulation 2 prevents that mandatory outcome for Fortune REIT. This means that counsel advising the responsible person must carefully assess what obligations remain in force after authorisation withdrawal, and what alternative steps (if any) are required or permitted under the SFA and any other applicable regulatory or contractual regimes.
Enforcement and compliance implications also follow. The exemption is a legal shield against a particular statutory duty. However, it does not necessarily mean that the responsible person is free from all regulatory responsibilities. Practitioners should therefore treat the exemption as a targeted modification rather than a blanket clearance. The responsible person should ensure that any investor-facing actions, governance steps, and asset management decisions remain consistent with the SFA’s continuing requirements and any MAS directions or conditions that may apply.
Finally, the Regulations is a useful example of how MAS can use subsidiary legislation to tailor outcomes for specific entities. The legal basis (s 337(1) SFA) indicates that MAS has authority to make regulations to provide exemptions or modifications in appropriate circumstances. For lawyers, this underscores the importance of checking not only the main Act but also entity-specific subsidiary instruments when advising on regulatory status and statutory consequences.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular:
- Section 288(7) (withdrawal of authorisation of a REIT)
- Section 295(2) (requirement to take necessary steps to wind up following withdrawal of authorisation)
- Section 337(1) (power enabling MAS to make regulations)
- Futures Act (listed in provided metadata as related legislation; note that the extract itself is anchored in the SFA)
- Timeline (as referenced in the platform interface; relevant for version control and amendments tracking)
Source Documents
This article provides an overview of the Securities and Futures (Exemption of Fortune Real Estate Investment Trust) Regulations 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.