On 19/05/2013,
you requested for the version in force on 19/05/2013
incorporating all amendments published on or before 19/05/2013.
The closest version currently available is that of 21/04/2011.
11.
—(1) An SRS member shall not —
(a)
use his SRS funds as collateral, security or guarantee for any financial transaction;
(b)
use any investment acquired using his SRS funds as collateral, security or guarantee for any financial transaction, or assign such investment to another person;
(c)
if he has made a deposit using SRS funds, use as collateral, security or guarantee for any financial transaction, or assign to another person —
(i)
the full amount in the account in which the funds are deposited; or
(ii)
any amount in the account if the amount in the account after deducting the first-mentioned amount is less than the sum of the SRS funds and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account; or
(d)
make a nomination under section 49L(2) of the Insurance Act (Cap. 142) in respect of any life insurance product acquired using his SRS funds.
(1A) An SRS member shall not enter into any arrangement with any person with respect to the use of his SRS funds the purpose or one of the purposes of which is to reduce or avoid any liability imposed or which would otherwise have been imposed by or under section 10L of the Act or any provision of these Regulations.
(2) An SRS member who contravenes paragraph (1) or (1A) shall be guilty of an offence.
(3) Subject to paragraph (4), an SRS member may use his SRS funds to make a deposit with a financial institution, or use his SRS funds to acquire only the following investments:
(a)
gold certificates offered by a financial institution;
(b)
any investment product within the meaning of the Financial Advisers Act (Cap. 110) that is offered by or through a financial institution.
(4) Where an investment product is an insurance product, an SRS member shall not use his SRS funds to acquire such insurance product unless —
(a)
it is a single premium insurance product; or
(b)
it provides life insurance coverage (including total and permanent disability benefits) not exceeding 3 times the single premium,
and the SRS member shall not in any event use his SRS funds to acquire any life insurance product providing for critical illness, health or long term care.
(5) An SRS operator shall —
(a)
ensure that the SRS funds of its SRS members are used only in the manner permitted by paragraph (3);
(b)
ensure that the amount standing to an account in which a deposit has been made using SRS funds of an SRS member does not at any time fall below the sum of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account;
(c)
ensure that on the closure of an account in which a deposit has been made using SRS funds of an SRS member, a sum comprising the amount of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account, is transferred to the member’s SRS account;
(d)
ensure that, on the instruction of an SRS member who has made a deposit of SRS funds to transfer from the account in which the SRS funds are deposited to his SRS account a sum comprising not more than the amount of the SRS funds deposited and all gains and interest derived therefrom (less any amount that has been transferred to his SRS account), the sum is so transferred;
(e)
subject to regulation 12(4), ensure that all gains or profits derived from investments acquired using SRS funds of any of its SRS members, and all proceeds of sale of such investments, are returned to his SRS account;
(f)
not discriminate against any deposit with any financial institution or any investment referred to in paragraph (3) created or distributed by any financial institution;
(g)
endeavour to offer settlement facilities to SRS members for as wide a range of investments referred to in paragraph (3) as possible;
(h)
settle each investment transaction individually and not allow contra trades or contra settlement; and
(i)
upon the death or bankruptcy of any of its SRS members, complete the settlement of any transaction initiated by that SRS member before such death or bankruptcy in accordance with the relevant law.
(6) An SRS operator who contravenes paragraph (5) shall be guilty of an offence.
(7) Nothing in this regulation shall be taken to require an SRS member to sell any investment product which he acquired using his SRS funds under paragraph (3) in the event that the product ceases to be an investment product within the meaning of the Financial Advisers Act (Cap. 110).