On 24/05/2013,
you requested for the version in force on 24/05/2013
incorporating all amendments published on or before 24/05/2013.
The closest version currently available is that of 29/04/2011.
PART V
COMPENSATION UNDER DI SCHEME
21.
—(1) Where, on or after the appointed day —
(a)
an order is made by a court in Singapore or elsewhere to wind up a DI Scheme member; or
(b)
the Authority is of the opinion that a DI Scheme member is insolvent, unable or likely to become unable to meet its obligations, or about to suspend payments,
the Authority may determine that compensation shall be paid out of the DI Fund to the insured depositors of the DI Scheme member in accordance with this Act.
(2) Where the Authority determines that compensation shall be paid out of the DI Fund under subsection (1), the Authority shall immediately give notice in writing to the Agency of its determination.
(3) The notice in writing referred to in subsection (2) shall be in such form and contain such information as may be agreed between the Authority and the Agency.
(4) The Agency shall, as soon as practicable upon receiving the notice referred to in subsection (2), publish a notice in the Gazette stating that a payment of compensation shall be made out of the DI Fund.
22.
—(1) Subject to subsection (5) and section 23, where an insured depositor has one or more insured deposits placed with a failed DI Scheme member (other than any moneys, denominated in Singapore dollars, placed with the failed DI Scheme member under the CPFIS and CPFMS), which —
(a)
the insured depositor holds in his own right;
(b)
the insured depositor holds in his own right jointly with one or more other persons in a joint account;
(c)
the insured depositor holds in the name of his sole-proprietorship; or
(d)
consists of moneys denominated in Singapore dollars placed with the failed DI Scheme member under the Supplementary Retirement Scheme,
the insured depositor shall be entitled to compensation from the DI Fund computed on the basis of the aggregate amount, as at the quantification date, of such insured deposits falling within paragraphs (a), (b), (c) and (d), and such compensation shall not exceed the aggregate amount of such insured deposits or the Maximum DI Coverage, whichever is the lower.
(2) Where any insured depositor has one or more insured deposits placed with a failed DI Scheme member (other than moneys denominated in Singapore dollars, placed with the failed DI Scheme member under the CPFIS and CPFMS) which the insured depositor holds in an account as trustee under a trust or holds in a client account, the insured depositor shall be entitled, in respect of every such account, to compensation from the DI Fund, not exceeding the amount of such insured deposits in that account or the Maximum DI Coverage, whichever is the lower.
(3) For the purposes of subsection (2), where there are 2 or more insured depositors holding any insured deposit in an account under a trust or in a client account jointly, the compensation referred to in subsection (2) shall be divided equally among those insured depositors and paid accordingly.
(4) Where any insured deposit of any insured depositor placed with a failed DI Scheme member consists of moneys, denominated in Singapore dollars, placed with the failed DI Scheme member under the CPFIS or CPFMS, such moneys shall not be aggregated with his other insured deposits placed with that failed DI Scheme member for the purposes of determining the amount of compensation that the insured depositor is entitled to, and the insured depositor shall be entitled, in respect of moneys denominated in Singapore dollars placed with the failed DI Scheme member under the CPFIS and CPFMS, to compensation from the DI Fund, not exceeding the amount of such moneys placed with the failed DI Scheme member or the Maximum DI Coverage, whichever is the lower.
(5) Where an insured depositor has one or more prescribed products placed with a failed DI Scheme member, which the Minister has, by order published in the Gazette, determined to be subject to separate coverage under the DI Scheme (referred to in this section as the first-mentioned prescribed products), whether on their own or in aggregation with other prescribed products (referred to in this section as the other prescribed products) —
(a)
the insured depositor shall be entitled to compensation from the DI Fund computed on the basis of the aggregate amount, as at the quantification date —
(i)
of the first-mentioned prescribed products; or
(ii)
of the first-mentioned prescribed products in aggregation with the other prescribed products,
as the case may be; and
(b)
such compensation shall not exceed —
(i)
in the case where the first-mentioned prescribed products are subject to separate coverage on their own, the aggregate of the amounts of all the first-mentioned prescribed products held by him or the Maximum DI Coverage, whichever is the lower; or
(ii)
in the case where the first-mentioned prescribed products are to be aggregated with the other prescribed products, the aggregate of the amounts of all the prescribed products held by him or the Maximum DI Coverage, whichever is the lower.
(6) For the purposes of determining the amount of compensation which an insured depositor is entitled under this section, the liabilities, if any, that are owing from the insured depositor to the failed DI Scheme member shall be disregarded.
(7) Notwithstanding the provisions in this section —
(a)
in the case of an insured depositor who is deceased, the Agency shall pay the compensation to the personal representatives of the deceased insured depositor;
(b)
in the case where a final order under Order 49, Rule 1 of the Rules of Court (Cap. 322, R 5) has been made with respect to the insured deposit pursuant to an order to show cause served on the failed DI Scheme member prior to the quantification date, the Agency shall pay the whole or part (as the case may be) of the compensation to the judgment creditor in favour of whom the final order is made; and
(c)
the Agency shall pay the compensation to such other persons in such circumstances as the Minister may prescribe.
23.
—(1) Where an insured depositor holds any insured deposit in his own right, the insured depositor is entitled, in respect of the insured deposit as at the quantification date, to compensation from the DI Fund.
(2) Where there are 2 or more insured depositors holding any insured deposit, each of those insured depositors is entitled, in respect of his share in the insured deposit as at the quantification date, to compensation from the DI Fund.
(3) For the purposes of determining the share of any insured depositor in an insured deposit under subsection (2), each insured depositor holding such insured deposit shall be deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the failed DI Scheme member.
(4) For the avoidance of doubt, subsection (3) does not affect any rights as between the persons holding such insured deposit themselves.
24. Where the Agency has paid an insured depositor the full amount of compensation payable to the insured depositor or any person referred to in section 22(7) or both, as the case may be, in respect of his insured deposits in accordance with this Act, no other person is entitled, in respect of those same insured deposits, to compensation under this Part.
25.
—(1) The Agency shall compute the amount of compensation due to any insured depositor in respect of his insured deposits placed with a failed DI Scheme member in accordance with this Act.
(2) In determining the eligibility and entitlement of any insured depositor to compensation and computing the amount of compensation due to any insured depositor, the Agency is entitled to rely on the books of the failed DI Scheme member and any other books which, in the opinion of the Agency, are relevant for such determination and computation.
(3) Subject to subsection (4), the Agency shall pay the compensation in such form and manner as may be specified in the Rules.
(4) The Authority may make regulations for the purposes of payment of compensation by the Agency.
(5) Without prejudice to the generality of subsection (4), such regulations may —
(a)
specify the person to whom, or the account into which, payment of compensation is to be made for the benefit of any insured depositor who is entitled to compensation under this Act;
(b)
provide for the payment of compensation in respect of any insured depositor holding insured deposits in different accounts; and
(c)
provide for the payment of compensation into an equivalent account with another DI Scheme member and for such compensation to be held in that account in a manner equivalent to the manner of holding of the original insured deposit.
26.
—(1) Where —
(a)
a DI Scheme member merges or consolidates with another DI Scheme member; or
(b)
a DI Scheme member (referred to in this section as the acquiring DI Scheme member) acquires the deposit-taking business of another DI Scheme member to form part of the business of the acquiring DI Scheme member,
and there is a subsequent failure of the merged or consolidated DI Scheme member or acquiring DI Scheme member, as the case may be, within one year after the date of the merger, consolidation or acquisition (referred to in this section as an additional cover period), any insured depositor, who has insured deposits placed with both of the original DI Scheme members immediately before the merger, consolidation or acquisition, as the case may be, shall be entitled to compensation in accordance with this Act as if the merger, consolidation or acquisition did not take place; and in respect of his insured deposits with each of the original DI Scheme members, shall be entitled to compensation of an amount not exceeding the Maximum DI Coverage or the amount of insured deposits placed with the relevant DI Scheme member, whichever is the lower.
(2) The Minister may extend the additional cover period for the insured deposits under subsection (1) —
(a)
where the Minister is satisfied that it is in the interest of the insured depositors of any DI Scheme member or the public to do so; or
(b)
to maintain financial stability in Singapore.
27.
—(1) Upon payment out of the DI Fund of any compensation under this Act to, or for the benefit of, any insured depositor in respect of his insured deposit or any person referred to in section 22(7) in respect of that insured deposit, the Agency shall be subrogated to the extent of such payment to all the rights and remedies of —
(a)
the insured depositor;
(b)
the person who received the compensation on behalf of the insured depositor;
(c)
the person referred to in section 22(7);
(d)
in the case where payment is made to an insured depositor who is a trustee, the trustee; or
(e)
in the case where payment is made to an insured depositor who held the insured deposit in a client account, that insured depositor,
as the case may be, in respect of the insured deposit in priority over —
(i)
the rights and remedies of the insured depositor, the person who received the compensation on behalf of the insured depositor or the person referred to in section 22(7), as the case may be, in relation to that insured deposit; and
(ii)
the rights and remedies of any person who is subrogated, whether or not before the Agency’s subrogation, to the rights and remedies of any of the persons referred to in paragraphs (a), (b), (c), (d) and (e) in relation to that insured deposit,
and may maintain an action in respect of those rights and remedies in the name of the person referred to in paragraph (a), (b), (c), (d) or (e), as the case may be, or in the name of the Agency, subject to subsection (2).
(2) Where the Agency maintains an action in respect of the rights and remedies in the name of the person referred to in subsection (1)(a), (b), (c), (d) or (e), as the case may be, the following provisions shall apply:
(a)
in the case where the failed DI Scheme member is not wound up, the Agency shall be entitled to recover the full amount of compensation claimed against the failed DI Scheme member, notwithstanding any liabilities owing by the insured depositor to the DI Scheme member; and
(b)
in the case where the failed DI Scheme member is wound up, the insolvency rules relating to set-off shall not apply in relation to the rights and remedies of the insured depositor.
(3) For the purposes of subsection (1), where the Agency is unable to effect payment to an insured depositor (due to incorrect or outdated addresses, in respect of accounts which are dormant or any other reasons beyond the reasonable control of the Agency), the Agency shall be deemed to have made payment out of the DI Fund of compensation under this Act to, or for the benefit of, an insured depositor in respect of his insured deposit, if the Agency makes payment of the compensation to the Public Trustee appointed under the Public Trustee Act (Cap. 260) to be held on trust for the insured depositor.
(4) The persons referred to in paragraphs (a), (b), (c), (d) and (e) of subsection (1), or any person who is subrogated, whether or not before the Agency’s subrogation, to the rights and remedies of those persons, shall not be entitled to receive any amount from, or out of, the assets of the failed DI Scheme member until the Agency has been reimbursed in full the amount of compensation paid to those persons and any expenses under subsection (5).
(5) Notwithstanding any provision in the Companies Act (Cap. 50), the Agency shall be entitled —
(a)
in the case where the failed DI Scheme member is wound up, to be reimbursed out of the assets of the failed DI Scheme member for the expenses incurred in —
(i)
the payment of any compensation to insured depositors including any interest charged on moneys borrowed by the Agency for the purpose of making payment of any compensation to insured depositors under the DI Scheme; and
(ii)
the lodging of any claim with the liquidator of the failed DI Scheme member for any compensation that has been paid out to insured depositors; or
(b)
in any other case, to be reimbursed by the failed DI Scheme member or the provisional liquidator of the failed DI Scheme member, as the case may be, for the expenses incurred in —
(i)
the payment of any compensation to insured depositors, including any interest charged on moneys borrowed by the Agency for the purpose of making payment of any compensation to insured depositors under the DI Scheme; and
(ii)
where a claim has been lodged with the provisional liquidator of the failed DI Scheme member for any compensation that has been paid out to insured depositors, the lodging of the claim.
(6) The Authority may by regulations, provide for the manner, process or method by which the Agency may exercise its rights to be subrogated to the rights and remedies as set out in subsection (1).
(7) For the purposes of making payment of compensation by the Agency to the Public Trustee under subsection (3) and payment of compensation by the Public Trustee to insured depositors and any person referred to in section 22(7), the Authority may, with the concurrence of the Public Trustee and in consultation with the Agency, make regulations for or in respect of all or any of the following matters:
(a)
the manner in which moneys paid by the Agency to the Public Trustee are to be paid to insured depositors or any person referred to in section 22(7);
(b)
the fees to be paid by the Agency to the Public Trustee and the manner of payment of such fees;
(c)
such other matters as the Authority considers necessary.
(8) The provisions in the Fifth Schedule shall apply in relation to the holding and payment of compensation under this Act by the Public Trustee to insured depositors and any person referred to in section 22(7).
(9) If the Authority wishes to amend or vary any regulations made under subsection (7), the Authority shall first conduct a joint review with the Public Trustee and such regulations shall not be amended or varied without the concurrence of the Public Trustee and consulting the Agency.
28.
—(1) If —
(a)
any compensation paid to, or for the benefit of, an insured depositor out of the DI Fund is in excess of what ought to have been paid to the insured depositor under this Act; or
(b)
any compensation is paid in error to any person,
the Agency may recover the amount paid in error or excess from the person who received the compensation, in such manner and within such period as may be specified by the Agency to that person.
(2) Without prejudice to any other remedy, any amount paid in error or excess to any person shall be recoverable as a debt due to the Agency by that person.
(3) Notwithstanding any provision in the Limitation Act (Cap. 163), an action to recover any amount paid in error or excess to any person recoverable by virtue of this section shall not be brought after the expiration of the period during which the action may be brought against the person under the Limitation Act or the date of completion of the winding up of the failed DI Scheme member, whichever is the later.
(4) Upon the recovery of any amount paid in error or excess from any person under this section (referred in this section as the recovered amount), the Agency shall do the following:
(a)
in the case where the failed DI Scheme member is not wound up or where the winding up of the failed DI Scheme member has not completed and the Agency has not recovered or has not recovered in full from the failed DI Scheme member or its liquidator, as the case may be, the compensation which it paid out to the insured depositors, the Agency shall deduct from the recovered amount the shortfall in compensation and pay such deducted amount to the DI Fund, and pay the amount remaining from the recovered amount after the deduction, if any, to the failed DI Scheme member or its liquidator, as the case may be;
(b)
in the case where the failed DI Scheme member is not wound up or where the winding up of the failed DI Scheme member has not completed and the Agency has recovered from the failed DI Scheme member or its liquidator, as the case may be, in full the compensation which it paid out to the insured depositors, the Agency shall pay the recovered amount to the failed DI Scheme member or its liquidator, as the case may be;
(c)
in the case where the winding up of the failed DI Scheme member has completed and the Agency has not recovered or has not recovered in full from the liquidator the compensation which it paid out to the insured depositors, the Agency shall deduct from the recovered amount the shortfall in compensation and pay such deducted amount to the DI Fund, and pay the amount remaining from the recovered amount after the deduction, if any, to the Official Receiver to be placed to the credit of the Companies Liquidation Account; and
(d)
in the case where the winding up of the failed DI Scheme member has completed and the Agency has recovered from the liquidator in full the compensation which it paid out to the insured depositors, the Agency shall pay the recovered amount to the Official Receiver to be placed to the credit of the Companies Liquidation Account.
(5) Section 322(3), (6), (7), (8) and (9) of the Companies Act (Cap. 50) shall apply, with the necessary modifications, to the money paid to the Official Receiver under subsection (4)(c) and (d).
29.
—(1) Subject to subsection (3), notwithstanding any written law or rule of law, where —
(a)
the Agency has paid compensation to an insured depositor or any person referred to in section 22(7) out of the DI Fund in accordance with this Act;
(b)
such compensation is, or will be, accorded priority in the event of the winding up of the failed DI Scheme member under section 62 of the Banking Act (Cap. 19) or section 44A of the Finance Companies Act (Cap. 108), as the case may be; and
(c)
the failed DI Scheme member has one or more existing claims against the insured depositor,
the liquidator may bring legal proceedings with respect to those claims in the name, and on behalf, of the failed DI Scheme member against the insured depositor or any person who received compensation on behalf of the insured depositor, to recover such moneys as may be necessary to put the failed DI Scheme member into the position it would have been as against the insured depositor with respect to those claims, if —
(i)
the Agency had not paid out any compensation or been accorded priority under section 62 of the Banking Act or section 44A of the Finance Companies Act, as the case may be, in respect of the compensation paid to the insured depositor; and
(ii)
the liquidator had applied the same rules with regard to the respective rights of debts provable and the valuation of future and contingent liabilities as are in force for the time being under the law relating to bankruptcy in relation to the estates of persons adjudged bankrupt, as if the failed DI Scheme member were a person so adjudged.
(2) Such moneys shall be recoverable as a debt due to the failed DI Scheme member by the insured depositor or any person who received compensation on behalf of the insured depositor.
(3) This section shall not apply to any moneys held by the Public Trustee pursuant to any payment of compensation by the Agency under section 27(3).