SMA, a private domestic company, is a Statutory Body and as such is empowered to grant loans and issue shares to its members. The members of SMA are inter alia the employees of local authorities and certain statutory bodies. The SMA uses the contribution made by its members to provide the said loans and issue shares to its members. SMA now wishes to diversify its operations and start taking deposits from the general public in order to have access to more funds and be able to increase its loan facilities to its members. As the legal advisor of SMA , you are requested to provide a legal opinion on the following:

1. Is SMA required to apply for a licence from the relevant authorities in order to take deposits from the general public?

2. If yes, what type of licence would the SBMAA need to apply for, in order to take deposits from the general public and what are the conditions of such a licence?

Tips : Banking Act (if applicable), Securities Act (different types of licences), Financial Services Act, Financial Services Commission