CNP 08-2021.jpg

Contents

  1. Non-fungible tokens ("NFTs"): developments and legal issues
     

  2. Financial Action Task Force ("FATF") Travel Rule as implemented in Singapore
     

  3. Indonesian investment updates - Increase in paid-up capital requirements for PT PMA
     

  4. Covid-19 pandemic: Non-competition and confidentiality obligations in employment agreements
     

  5. What can contractual parties do when unforeseen events prevent performance of contractual obligations?
     

  6. Legal implications arising from cross-border remote work
     

  7. SGX RegCo: Expectations of the Board and Nomination Committees in the appointment and resignation of directors.
     

  8. The Law Reform Committee's Report on the Enactment of Non-Charitable Purpose Trusts.
     

  9. Examining the exceptions to the Access Obligation under the Personal Data Protection Act 2012: A case update on [redacted] v HSBC Bank (Singapore) Limited [2021] SGPDPC 3

 

Non-fungible tokens ("NFTs"): developments and legal issues

 

This is a second article on NFTs following upon our first article on NFTs titled "Non-fungible tokens and their legal implications" published on 27 May 2021.Our first article explained some of the basic terminology, identified some fundamental intellectual property rights and other legal issues of concern. This article presents a deeper dive into the world of NFTs, NFT platforms and some ensuing legal issues.

Financial Action Task Force ("FATF") Travel Rule as implemented in Singapore

 

Purpose of the FATF Travel Rule
It is common for virtual assets such as cryptocurrencies to be used as a means to layer illicit transactions, in which Virtual Asset Service Providers ("VASPs") operating in jurisdictions that do not have effective anti-money laundering ("AML") and counter terrorist financing ("CTF") regulation in place are commonly exploited by using technological tools to increase anonymity of transactions. Examples of such technological tools are cryptocurrency tumblers or cryptocurrency mixers which mixes "tainted" cryptocurrency funds with other funds to prevent or obscure the ability to trace the original source of the "tainted" funds.

 

Indonesian investment updates - Increase in paid-up capital requirements for PT PMA

 

Indonesia's Ministry of Investment, otherwise referred to as the Investment Coordinating Board, (Badan Koordinasi Penanaman Modal or "BKPM") has issued the BKPM Regulation 4 of 2021 ("Reg 4/2021"), which came into effect on 2 June 2021. This article provides a quick update on the changes brought forth by Reg 4/2021 on the paid-up capital requirements for foreign investment company in Indonesia

Covid-19 pandemic: Non-competition and confidentiality obligations in employment agreements

 

The Covid-19 pandemic has affected the businesses of many companies in unprecedented ways and will forever change the way businesses operate. Employers looking to hire may wish to change the terms in their employment contracts to suit the work transformations that have taken place as a result of the pandemic. In particular, the effectiveness of the terms relating to obligations post-termination should be reconsidered.

What can contractual parties do when unforeseen events prevent performance of contractual obligations?
 

Force majeure is commonly understood as a specific kind of contractual clause which excuses the parties from their contractual obligations when an unexpected, external event has occurred that prevents or inhibits performance. There is no general rule as to what amounts to a force majeure event; whether a force majeure event arises depends on what is contractually provided for in the contract. It is possible to contractually provide that the acts of third parties could be such an event if such acts prevent performance by the contracting parties.

Legal implications arising from cross-border remote work

 

In early June 2021, Facebook announced that employees whose jobs could be done remotely may request to work remotely from wherever they may be, and that it would support remote work opportunities inter alia, in the Europe, Middle East, and Africa regions, allowing employees to move from anywhere to the UK. This is but one of the many examples of how the COVID-19 pandemic has radically altered the way we work. In response to the risks of virus transmission, travel restrictions, quarantines and lockdowns forcing employees to work from home, cross-border remote working arrangements have increasingly become prevalent and will likely be a permanent work arrangement for many employers after the pandemic ends, as employers seek to capitalise on the global workforce.

SGX RegCo: Expectations of the Board and Nomination Committees in the appointment and resignation of directors

On 1 July 2021, the Singapore Exchange Regulation ("SGX RegCo") released a new Regulator’s Column regarding its expectations of the Board and Nomination Committees ("NCs") of SGX-listed companies when directors join or resign.

The Law Reform Committee's Report on the Enactment of Non-Charitable Purpose Trusts

 

On 31 May 2021, the Singapore Academy of Law's Law Reform Committee ("LRC") released a report recommending the creation of statutory Non-Charitable Purpose Trusts ("NCPTs") for certain purposes in Singapore. As Singapore currently follows the common law position, NCPTs are generally regarded as invalid for offending the beneficiary principle and the rule against perpetuities, as well as not having the requisite certainty to constitute a trust. However, the LRC was of the view that a standalone statute would meet the growing demand from businesses and families for additional means to manage and bequeath their assets as well as facilitating access to capital by social enterprises, without compromising public policy considerations.

Examining the exceptions to the Access Obligation under the Personal Data Protection Act 2012:

A case update on [redacted] v HSBC Bank (Singapore) Limited [2021] SGPDPC3

 

Under section 21(1) of the Personal Data Protection Act 2012 ("PDPA"), an individual has the right to access personal data about him that is in an organisation's possession or under its control, and information on how such personal data has been collected, used or disclosed. This is termed as the Access Obligation of an organisation. However, the Access Obligation is also subject to section 21(2) of the PDPA, which allows an organisation to invoke any of the exceptions listed in the Fifth Schedule to the PDPA to decline the access request made by an individual.