FAQ 8.48

Pursuant to Rule 8.25(1)(ii) of the ACE LR, a listed corporation 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 corporation or its subsidiaries. As such loans/advances made to a third party by the listed corporation or any of its subsidiaries in the ordinary course of its moneylending business is permitted. However, unless the listed corporation or its wholly owned subsidiary is exempted under Rule 8.25(4), the conditions set out in Rule 8.25 of the ACE LR must be satisfied and in particular, Rule 8.25(2). In this respect, the board of directors of the listed corporation 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 Rule 8.25(2)(a)(ii)(aa)-(dd).

In addition to this, the listed corporation 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 Rule 8.25(2)(e) of the ACE LR.