Financial assistance

​​​8.41

Can a listed issuer or any of its subsidiaries commence or continue to lend or advance monies to third party(ies) pursuant to its moneylending business?

Pursuant to paragraph 8.23(1)(ii) of the Main LR, a listed issuer or any of its subsidiaries can provide such financial assistance where it is made pursuant to or where it is necessary to facilitate the ordinary course of business of the listed issuer or its subsidiaries. As such, loans/advances made to a third party by the listed issuer or any of its subsidiaries in the ordinary course of its moneylending business is permitted. However, unless the listed issuer or its wholly owned subsidiary is exempted under paragraph 8.23(4), the conditions set out in paragraph 8.23 of the Main LR must be satisfied and in particular, paragraph 8.23(2). In this respect, the board of directors of the listed issuer would have to oversee the moneylending operations and the management of credit risk of the moneylending company including ensuring adequate policies and procedures are in place in relation to the matters set out in paragraph 8.23(2)(a)(ii)(aa)-(dd).

In addition to this, the listed issuer will have to make the relevant quarterly announcements for each of the moneylending company not later than 7 market days after the end of each quarter of the financial year as prescribed under paragraph 8.23(2)(e) of the Main LR.