On 23/05/2013,
you requested for the version in force on 23/05/2013
incorporating all amendments published on or before 23/05/2013.
The closest version currently available is that of 29/04/2011.
PART X
deposit insurance AND POLICY OWNERS’ PROTECTION FUND AGENCY
56. The Minister may, by notification in the Gazette, designate a company incorporated in Singapore to be the deposit insurance and policy owners’ protection fund agency for the purposes of this Act.
57.
—(1) Subject to the provisions of this Act, the objects of the Agency shall be —
(a)
to administer the DI Scheme and PPF Scheme in accordance with this Act;
(b)
to administer and manage the DI Fund, PPF Life Fund and PPF General Fund in accordance with this Act;
(c)
to administer and manage the insurance business of a failed PPF Scheme member; and
(d)
to take such steps as may be directed by the Minister or after consultation with the Authority, to contribute to the stability of the financial system.
(2) Without prejudice to the generality of subsection (1), the functions of the Agency shall include the following:
(a)
collect premium contributions and levies payable by DI Scheme members and PPF Scheme members under this Act;
(b)
make payments of compensation in respect of insured deposits to insured depositors out of the DI Fund after the Agency has determined the eligibility and entitlement of the depositors;
(c)
make payments of compensation in respect of protected liabilities to insured policy owners and beneficiaries of insured policies covered under the PPF General Fund which provide third party benefits out of the PPF Life Fund and the PPF General Fund after the Agency has determined their eligibility and entitlement;
(d)
make interim payments of compensation out of the DI Fund to insured depositors of such amounts as the Agency considers appropriate;
(e)
make interim payments of compensation out of the PPF Life Fund and the PPF General Fund to insured policy owners and make interim payment of compensation out of the PPF General Fund to beneficiaries of insured policies which are covered under the PPF General Fund and provide third party benefits of such amounts as the Agency considers appropriate;
(f)
where the transfer of the whole or part of the insurance business from a failed PPF Scheme member to another PPF Scheme member is reasonably practicable, make payment out of the PPF Life Fund or the PPF General Fund to fund such transfer;
(g)
make payment out of the PPF Life Fund or the PPF General Fund to —
(i)
fund the run-off of the insurance business of the failed PPF Scheme member;
(ii)
set up a company to hold the insured policies of the failed PPF Scheme member; and
(iii)
outsource the administration of the insured policies of the failed PPF Scheme member to a third party;
(h)
carry on the run-off of the insurance business of the failed PPF Scheme member and to set up a company to hold the insured policies of the failed PPF Scheme member;
(i)
claim from the failed DI Scheme member for reimbursement of the amount of compensation paid to the insured depositors out of the DI Fund, together with any interest accrued thereon;
(j)
claim from the failed PPF Scheme member for reimbursement of the amount of compensation paid to the insured policy owners and beneficiaries of insured policies covered under the PPF General Fund which provide third party benefits out of the PPF Life Fund and the PPF General Fund, together with any interest accrued thereon;
(k)
claim payment from the liquidator or provisional liquidator of a failed DI Scheme member, out of the assets of the failed DI Scheme member, for reimbursement of the amount of compensation paid to the insured depositors out of the DI Fund, together with any interest accrued thereon;
(l)
claim payment from the liquidator or provisional liquidator of a failed PPF Scheme member, out of the assets of the failed PPF Scheme member, for reimbursement of the amount of compensation paid to the insured policy owners and beneficiaries of insured policies covered under the PPF General Fund which provide third party benefits out of the PPF Life Fund or the PPF General Fund, together with any interest accrued thereon;
(m)
educate the public on the DI Scheme and the PPF Scheme.
(3) The Agency shall have the power to do anything for the purpose of fulfilling its objects and discharging its functions under this Act or any other written law, or which is incidental or conducive to the fulfilment of those objects and discharge of those functions.
(4) Notwithstanding sections 9(4) and 34(5) and (6), the Agency may transfer to its account for the purpose of paying expenses of the Agency, moneys from the DI Fund, PPF Life Fund and PPF General Fund up to the amount approved under section 77 by the Minister as annual estimates and supplementary estimates of income and expenditure of the DI Fund, PPF Life Fund and PPF General Fund.
58.
—(1) Notwithstanding any provision in the Companies Act (Cap. 50), the Agency shall not amend the memorandum and articles of association of the Agency without the prior approval of the Minister.
(2) Any amendment made to the memorandum and articles of association of the Agency without the prior approval of the Minister shall be void.
59.
—(1) This section shall have effect notwithstanding any provision in the Companies Act and the memorandum and articles of association of the Agency.
(2) The board of directors of the Agency shall consist of —
(a)
a Chairman who shall be appointed by the board of directors; and
(b)
not less than 4 but not more than 9 other directors.
(3) A director shall hold office for a term not exceeding 3 years and shall be eligible for reappointment.
(4) No person shall be appointed as or remain a director on the board of directors if he is a substantial shareholder, a director or an employee of —
(a)
any DI Scheme member or PPF Scheme member; or
(b)
a related corporation of any DI Scheme member or PPF Scheme member.
(5) In this section —
“related corporation” has the same meaning as in section 4(1) of the Companies Act;
“substantial shareholder” has the same meaning as in section 81 of the Companies Act.
60. The board of directors shall be accountable to the Minister for its acts and decisions.
61. There shall be paid to the Chairman of the board of directors and directors of the Agency out of the DI Fund, PPF Life Fund and PPF General Fund such salaries, fees and allowances as the Minister may, from time to time, determine upon the recommendation of the Agency.
62.
—(1) The board of directors shall appoint a Chief Executive on such terms and conditions as the board may determine.
(2) The Chief Executive shall —
(a)
be known by such designation as the board of directors may determine; and
(b)
be responsible to the board of directors for the proper administration and management of the functions and affairs of the Agency in accordance with the policies and directions laid down by the board.
(3) Where the Chief Executive is temporarily absent from Singapore or temporarily incapacitated by reason of illness, or is for any other reason temporarily unable to perform his duties, a person may be appointed by the board of directors to act in the place of the Chief Executive during any such period of absence from duty.
(4) The Agency may, from time to time, appoint and employ on such terms and conditions as it may determine, such other officers, employees, consultants and agents as may be necessary for the effective performance of its functions.
63.
—(1) The Agency may issue, and in its discretion publish for information in the Gazette or in any other manner as it considers appropriate, Rules for any matter relating to any of its functions under this Act.
(2) Without prejudice to the generality of subsection (1), such Rules may provide for —
(a)
the manner and method of collection of premium contributions, levies and late payment fees;
(b)
the manner of disclosure by DI Scheme members as to whether their products are insured deposits;
(c)
the manner of disclosure by PPF Scheme members as to whether their products are insured policies;
(d)
the particulars to be recorded in, or in respect of, books kept by DI Scheme members for the purpose of computing the amount of insured deposits placed with the DI Scheme members, and the particulars to be recorded in, or in respect of, books kept by PPF Scheme members for the purpose of confirming the insured policies issued by a PPF Scheme member;
(e)
the manner in which compensation is to be paid to insured depositors and persons referred to in section 22(7) from the DI Fund, insured policy owners from the PPF Life Fund and the PPF General Fund, and beneficiaries of insured policies which are covered under the PPF General Fund and provide third party benefits from the PPF General Fund;
(f)
the collection from any DI Scheme member by the Agency of any information in relation to its insured deposits and insured depositors, for the purpose of computing the amount of compensation which is to be paid to the insured depositors; and
(g)
the collection from any PPF Scheme member by the Agency of any information in relation to the insured policies, insured policy owners and beneficiaries of insured policies which are covered under the PPF General Fund and provide third party benefits, for the purpose of computing the amount of compensation which is to be paid to the insured policy owners or beneficiaries.
(3) The Agency may, at any time, amend or revoke the whole or part of any Rule issued under this section.
(4) Without limiting the operation of any other provision of this Act, the Rules shall bind the Agency, the DI Scheme members and the PPF Scheme members to the same extent as if the Rules had been contained in properly executed agreements on the part of the Agency and each DI Scheme member, or the Agency and each PPF Scheme member, as the case may be, to observe and comply with all the Rules.
(5) For the avoidance of doubt, no person, other than the Agency, a DI Scheme member or a PPF Scheme member, shall have any right to enforce the observance of or compliance with any of the Rules where such Rule is relevant.
(6) For the avoidance of doubt, any Rules issued under this section shall be deemed not to be subsidiary legislation.
(7) No Rule issued by the Agency shall be inconsistent with any regulations made by the Authority under this Act and any such Rule which is so inconsistent shall, to the extent of inconsistency, be void.
64.
—(1) The Authority may, for the purposes of ensuring disclosure of relevant information by the DI Scheme members and PPF Scheme members to the Agency, depositors, policy owners, customers or potential customers of the DI Scheme members and PPF Scheme members, make regulations for or in respect of all or any of the following matters:
(a)
the disclosure by DI Scheme members and PPF Scheme members as to whether their products are insured deposits or insured policies, as the case may be;
(b)
the manner of disclosure of relevant information by DI Scheme members and PPF Scheme members when they cease to be Scheme members.
(2) The Authority may, for the purposes of ensuring the operational preparedness of the DI Scheme members and PPF Scheme members in the event of an occurrence of any event precipitating the use of the DI Fund, PPF Life Fund or PPF General Fund, as the case may be, make regulations for or in respect of all or any of the following matters:
(a)
the necessary systems and processes that a DI Scheme member or PPF Scheme member shall have in place;
(b)
the appointment of one or more independent persons to assess the operational preparedness of a DI Scheme member or PPF Scheme member;
(c)
the employment of requisite personnel and qualified persons by a DI Scheme member or PPF Scheme member in respect of the proper functioning of the systems and processes.
(3) The regulations made under subsection (1) may provide that any contravention of any provision of the regulations shall be an offence punishable with a fine not exceeding $125,000 or with imprisonment for a term not exceeding 3 years or with both and, in the case of a continuing offence, with a further fine of $12,500 for every day or part thereof during which the offence continues after conviction.
(4) The regulations made under subsection (2) may provide that any contravention of any provision of the regulations shall be an offence punishable with a fine not exceeding $125,000 and, in the case of a continuing offence, with a further fine of $12,500 for every day or part thereof during which the offence continues after conviction.
65.
—(1) Where any person who is bound to observe or comply with the Rules fails to do so, the High Court may, on the application of the Agency, a DI Scheme member or a PPF Scheme member, and after giving the first-mentioned person an opportunity to be heard, make an order directing the first-mentioned person to observe or comply with those Rules.
(2) This section is in addition to, and not in derogation of, any other remedy available to the Agency, the DI Scheme member or the PPF Scheme member.