Statute Details
- Title: Securities and Futures (Exemption of Frasers Commercial Trust) Regulations 2020
- Act Code: SFA2001-S336-2020
- Type: Subsidiary Legislation (SL)
- Authorising Act: Securities and Futures Act (Cap. 289)
- Enacting Power: Section 337(1) of the Securities and Futures Act
- Commencement: 30 April 2020
- Status: Current version as at 27 March 2026
- Key Provisions: Section 1 (Citation and commencement); Section 2 (Exemption)
- Regulator: Monetary Authority of Singapore (MAS)
- Maker: Ravi Menon, Managing Director, MAS
- Legislative Instrument No.: S 336/2020
- Date Made: 15 April 2020
What Is This Legislation About?
The Securities and Futures (Exemption of Frasers Commercial Trust) Regulations 2020 is a narrowly tailored piece of subsidiary legislation. In plain terms, it provides a specific exemption for Frasers Commercial Trust (a real estate investment trust) from a statutory winding-up requirement that would otherwise be triggered when MAS withdraws its authorisation of the trust.
The Regulations sit within the broader regulatory framework of the Securities and Futures Act (SFA). Under the SFA, certain collective investment schemes—such as real estate investment trusts—are subject to authorisation and ongoing regulatory oversight by MAS. When MAS withdraws authorisation, the legislation generally requires the “responsible person” to take steps to wind up the trust. This Regulations instrument modifies that general rule for one named trust.
Accordingly, the Regulations do not create a new regulatory regime for all trusts. Instead, they operate as a targeted relief measure: they exempt the responsible person for Frasers Commercial Trust from the winding-up obligation that would otherwise apply under section 295(2) of the SFA following the withdrawal of authorisation under section 288(7).
What Are the Key Provisions?
Section 1: Citation and commencement establishes the formal identity of the instrument and when it takes effect. It provides that the Regulations may be cited as the “Securities and Futures (Exemption of Frasers Commercial Trust) Regulations 2020” and that they come into operation on 30 April 2020. For practitioners, this matters because the exemption’s legal effect is tied to the commencement date—meaning that any compliance steps taken before that date would be assessed under the law as it stood at the time.
Section 2: Exemption is the operative provision. It states that the responsible person for Frasers Commercial Trust is exempt from the requirement under section 295(2) of the SFA to take the necessary steps to wind up the trust. The exemption is specifically linked to the scenario where MAS withdraws its authorisation of Frasers Commercial Trust under section 288(7) of the SFA.
In practical terms, section 2 addresses a compliance consequence that would normally follow authorisation withdrawal. Without the exemption, section 295(2) would require winding-up steps—typically involving cessation of the trust’s regulated activities and orderly termination processes. By granting an exemption, MAS effectively allows the trust (or its responsible person) to avoid the mandatory winding-up pathway that would otherwise be triggered by authorisation withdrawal.
Although the Regulations are brief, their legal effect can be significant. The exemption is not framed as a discretionary waiver “on application” within the Regulations themselves; rather, it is a direct statutory exemption for the responsible person of the named trust. This means that, once the conditions in the SFA are met (withdrawal of authorisation under section 288(7)), the responsible person can rely on the Regulations to show that the winding-up requirement in section 295(2) does not apply.
How Is This Legislation Structured?
The Regulations are extremely concise and consist of only two sections:
(1) Section 1 (Citation and commencement)—sets out the name of the instrument and its commencement date.
(2) Section 2 (Exemption)—provides the substantive relief by exempting the responsible person for Frasers Commercial Trust from the winding-up requirement in section 295(2) of the SFA, in the context of withdrawal of MAS authorisation under section 288(7).
There are no schedules, definitions, or additional procedural provisions in the extract provided. The instrument therefore functions as a targeted amendment-by-exemption to the SFA’s general consequences for authorisation withdrawal.
Who Does This Legislation Apply To?
The Regulations apply specifically to the responsible person for Frasers Commercial Trust. They do not apply to other trusts, other responsible persons, or the broader class of regulated entities under the SFA. The exemption is therefore entity-specific and event-specific—it is triggered by the withdrawal of MAS authorisation under section 288(7) and operates to relieve the responsible person from the winding-up obligation under section 295(2).
From a practitioner’s perspective, the key question is identifying who qualifies as the “responsible person” for Frasers Commercial Trust under the SFA framework. The Regulations assume that concept is already defined and understood within the SFA and related regulatory materials. Once that identification is made, the exemption becomes available to that responsible person without the need for further action under the Regulations themselves.
Why Is This Legislation Important?
Even though the Regulations contain only one substantive provision, they are important because they address a high-stakes regulatory consequence: what happens after MAS withdraws authorisation. In the absence of an exemption, the responsible person would be required to take necessary steps to wind up the trust. Winding up can be costly, operationally disruptive, and may have significant implications for investors, distributions, and asset management.
By exempting the responsible person from the winding-up requirement, MAS signals that the withdrawal of authorisation does not necessarily mean that the trust must be terminated immediately through the statutory winding-up route. This can be relevant where a trust is transitioning to another regulatory status, undergoing a restructuring, or otherwise moving to a different legal or commercial arrangement that makes winding-up under section 295(2) inappropriate or unnecessary.
For legal practitioners advising trustees, responsible persons, or investors, the Regulations provide a clear statutory basis to manage post-withdrawal steps. They also reduce uncertainty: rather than relying on general regulatory discretion or negotiating bespoke outcomes, the responsible person can point to an express exemption in subsidiary legislation. This can be crucial when preparing compliance plans, investor communications, and transaction documentation that depend on whether winding-up is mandatory.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular:
- Section 288(7) (withdrawal of MAS authorisation of Frasers Commercial Trust)
- Section 295(2) (general requirement to take necessary steps to wind up following withdrawal of authorisation)
- Section 337(1) (MAS’s power to make exemption regulations)
- Futures Act (listed in the provided metadata as related legislation; the extract indicates the operative framework is the SFA)
- Legislation Timeline (MAS legislative timeline reference for version control)
Source Documents
This article provides an overview of the Securities and Futures (Exemption of Frasers Commercial Trust) Regulations 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.