On 19/06/2013,
you requested for the version in force on 19/06/2013
incorporating all amendments published on or before 19/06/2013.
The closest version currently available is that of 18/04/2013.
PART III
RETURNS, INSPECTIONS AND INVESTIGATIONS, WINDING UP AND TRANSFERS OF BUSINESS
[Act 11 of 2013 wef 18/04/2013]
36.
—(1) A registered insurance broker shall prepare such statements of account and other statements and in such form and manner as may be prescribed and lodge them with the Authority.
(2) A licensed insurer or registered insurance broker shall —
(a)
cause to be kept in Singapore such books and records as will sufficiently explain the transactions and financial position of the insurer or insurance broker, as the case may be, in Singapore and enable the insurer or insurance broker to comply with the requirements of this section and, in the case of the insurer, section 37; and
(b)
cause those books and records to be kept in such manner as to enable them to be conveniently and properly audited.
(3) A licensed insurer or an authorised reinsurer shall prepare and lodge with the Authority such statements of accounts and other statements relating to its business and in such form and manner as may be prescribed or specified in directions by the Authority.
(3A) For the purposes of subsection (3) —
(a)
a licensed insurer shall have such statements of accounts or part thereof audited by an auditor who satisfies subsection (6), in such form and manner as the Authority may prescribe or specify in directions; and
(b)
notwithstanding the provisions of the Companies Act (Cap. 50) or the Co-operative Societies Act (Cap. 62), as the case may be, every licensed insurer, other than a captive insurer and a marine mutual insurer, shall appoint an auditor annually.
(4) A registered insurance broker shall have its accounts audited for each financial year for which statements of accounts and other statements are prepared in accordance with regulations prescribed under subsection (1).
(5) A registered insurance broker shall appoint an auditor to carry out an audit of its accounts and other statements prepared in accordance with subsection (1) and where, for any reason, the auditor ceases to act for the registered insurance broker, the registered insurance broker shall, as soon as practicable thereafter, appoint another auditor.
(6) No person shall act as auditor for any licensed insurer or registered insurance broker unless —
(a)
he has a place of business in Singapore;
(b)
he is approved under section 10 of the Companies Act (Cap. 50) as a company auditor for the purposes of that Act; and
(c)
in the case of a licensed insurer, the licensed insurer has obtained the approval of the Authority to appoint that person as an auditor.
(7) An auditor shall not be approved by the Authority as an auditor for a licensed insurer unless he is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.
(8) Notwithstanding any other provision of this Act or the provisions of the Companies Act (Cap. 50), the Authority may, if it is not satisfied with the performance of duties by an auditor appointed by a licensed insurer or registered insurance broker —
(a)
at any time direct the licensed insurer or registered insurance broker to remove the auditor; and
(b)
direct the licensed insurer or registered insurance broker, as soon as practicable thereafter, to appoint another auditor,
and the licensed insurer or registered insurance broker, shall comply with such direction.
(9) The Authority may impose all or any of the following duties on an auditor:
(a)
a duty to submit such additional information in relation to his audit as the Authority considers necessary;
(b)
a duty to enlarge or extend the scope of his audit of the business and affairs of the licensed insurer or registered insurance broker, as the case may be;
(c)
a duty to carry out any other examination or establish any procedure in any particular case;
(d)
a duty to submit a report on any of the matters referred to in paragraphs (b) and (c),
and the licensed insurer or registered insurance broker, as the case may be, shall remunerate the auditor in respect of the discharge by him of all or any of these duties.
(10) An auditor’s report made under subsection (9) shall be lodged by the insurer with the Authority together with the statements of accounts lodged under subsection (3).
(11) If an auditor, in the course of the performance of his duties as an auditor of a licensed insurer or registered insurance broker, is satisfied that —
(a)
there has been a serious contravention of any provision of this Act or that an offence involving fraud or dishonesty has been committed;
(b)
serious irregularities have occurred, including irregularities that jeopardise the interests of policy owners;
(c)
in the case of a licensed insurer —
(i)
where the insurer is incorporated or established in Singapore, the insurer is unable to meet its obligations; or
(ii)
any transaction or dispute has taken place which will have a material effect on the solvency of any insurance fund established by the insurer under this Act; or
(d)
in the case of a registered insurance broker, the insurance broker is unable to meet its obligations,
the auditor shall immediately report the matter in writing to the Authority.
(12) In the case of a company incorporated or established outside Singapore, the audit required by subsection (3A) need not extend beyond the business for which an insurance fund is maintained under this Act.
(13) The Authority may, from time to time and in such form or manner as it considers appropriate, publish any information obtained or received by the Authority under this section or section 37.
[Act 11 of 2013 wef 18/04/2013]
37.
—(1) A licensed insurer shall, for each accounting period —
(a)
have an investigation made, by an actuary appointed with the approval of the Authority under section 31, into the financial condition of each class of business that it carries on; and
(b)
lodge with the Authority such reports of the investigation referred to in paragraph (a), in such form and manner as may be prescribed or specified in directions by the Authority.
(2) [Deleted by Act 11 of 2013 wef 18/04/2013]
(3) [Deleted by Act 11 of 2013 wef 18/04/2013]
(4) [Deleted by Act 11 of 2013 wef 18/04/2013]
(5) [Deleted by Act 11 of 2013 wef 18/04/2013]
(6) [Deleted by Act 11 of 2013 wef 18/04/2013]
(7) [Deleted by Act 23/2003 wef 01/01/2004]
(8) In the case of a company incorporated or established outside Singapore, the investigation required by subsection (1) need not extend beyond the business for which an insurance fund is maintained under this Act.
(9) If the company referred to in subsection (8) is required by the law relating to insurance in the country in which it is incorporated or established to furnish the authority having the administration of that law with returns as to actuarial investigations of its insurance business, the documents to be lodged with the Authority under this section shall be accompanied by certified copies of any such returns made since the company was first licensed under this Act in respect of insurance business, other than returns of which copies have previously been furnished under this subsection.
(10) References in this Act to documents lodged with the Authority shall not be taken to include documents required by subsection (9) to accompany documents so lodged.
(11) Where a licensed insurer —
(a)
has an actuarial investigation made into its insurance business for which it maintains an insurance fund under this Act (whether with or without any other insurance business carried on by it); and
(b)
the investigation is not made to comply with subsection (1) or with any provision as to returns in the law relating to insurance in a country outside Singapore, but the results of the investigation are made public,
then the insurer shall, as to the lodging of documents with the Authority, comply with the requirements of subsection (1) as in the case of an investigation made under that subsection.
[Act 11 of 2013 wef 18/04/2013]
38.
—(1) If it appears to the Authority that any document lodged in accordance with section 36 or 37 —
(a)
is, in any particular, unsatisfactory, incomplete, inaccurate or misleading; or
(b)
does not comply with the requirements of this Act,
the Authority may, by notice in writing, require such explanations as it may consider necessary to be made by or on behalf of the insurer within such time (not being less than 14 days) as is specified in the notice.
(2) The Authority may, after considering the explanations referred to in subsection (1), or if such explanations have not been given by or on behalf of the insurer within the time specified in that subsection, reject the document or give such directions as it may think necessary for its variation within such time (not being less than one month) as is specified in the directions.
(3) Directions given under subsection (2) with respect to any document may require such consequential variations of any other document lodged by the insurer under section 36 or 37 as may be specified in the directions.
(4) Where directions are given under subsection (2), any document to which they relate shall be deemed not to have been lodged until it is re-submitted with the variations required by the directions, but the insurer shall be deemed to have submitted the document within the time limited by regulations prescribed or directions issued under section 36(3) if it is re-submitted with the required variations within the time limited by the directions.
[Act 11 of 2013 wef 18/04/2013]
39.
—(1) Any member or policy owner of an insurer shall have a right, on applying to the insurer, to be sent by the insurer at an address supplied by him copies of documents lodged by the insurer to comply with section 36 or 37, and to have the copies despatched not later than 14 days after the insurer receives the application.
(2) The right referred to in subsection (1) shall not extend to any document excepted from this provision by regulations prescribed or directions issued under section 36(3), or to a document of any other description except the last lodged of that description.
(3) Any person shall have the right, on payment of the prescribed fee, at any time during working hours of the office of the Authority, to inspect at that office any document lodged by an insurer to comply with section 36 or 37 and any document required by that section to accompany the document so lodged and make a copy of the whole or any part of it.
(4) The right referred to in subsection (3) shall not extend to any document excepted from this provision by regulations prescribed or directions issued under section 36(3), or to documents of any other description lodged more than 10 years previously.
(5) In any proceedings, a certificate signed by any person appointed by the Authority under section 50 that a document is one lodged by an insurer to comply with section 36 or 37, or one that accompanied documents so lodged, shall be admissible as evidence of the facts certified.
(6) Any person who contravenes section 36 or 37 shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
40.
—(1) The Authority may, from time to time, inspect under conditions of secrecy, the books, accounts, records and other documents, whether in electronic, print or other form, of —
(a)
a licensed insurer;
(b)
any branch or subsidiary outside Singapore of a licensed insurer established or incorporated in Singapore; or
(c)
an insurance intermediary.
(2) For the purpose of an inspection under this section, a licensed insurer or insurance intermediary referred to in subsection (1) shall —
(a)
produce his books, accounts, records and other documents, whether in electronic, print or other form, to the Authority and give such information and facilities as may be required by the Authority to conduct the inspection; and
(b)
procure that any person who is in possession of such books, accounts, records and other documents referred to in paragraph (a) shall produce such books, accounts, records and other documents and give such information and facilities as may be required by the Authority.
(3) The Authority may make copies of, or take possession of, any of the books, accounts, records and other documents, whether in electronic, print or other form, of a licensed insurer or an insurance intermediary.
(4) [Deleted by Act 11 of 2013 wef 18/04/2013]
(5) Any person who fails, without reasonable excuse, to produce any book, account, record or other document or furnish any information or facilities in accordance with subsection (2) shall be guilty of an offence and shall be liable on conviction —
(a)
in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction; or
(b)
in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
40A.
—(1) The Authority may conduct such investigation as it considers necessary or expedient for all or any of the following purposes:
(a)
to perform any of the Authority’s functions and duties under this Act;
(b)
to determine the truth or otherwise of an alleged or suspected contravention of any provision of this Act or any direction issued under this Act.
(2) For the purposes of subsection (1), the Authority may, in writing, require any person named therein to provide information or to produce books, accounts, records and other documents, whether in electronic, print or other form, relating to any matter under investigation, and such person shall immediately comply with that requirement.
(3) Nothing in this Part shall —
(a)
compel an advocate and solicitor, or a legal counsel referred to in section 128A of the Evidence Act (Cap. 97), to disclose or produce a privileged communication, or a document or other material containing a privileged communication, made by or to him in that capacity; or
(b)
authorise the taking of any such document or other material which is in his possession.
(4) If an advocate and solicitor, or a legal counsel referred to in section 128A of the Evidence Act (Cap. 97), refuses to disclose the information or produce the document or other material referred to in subsection (3), he shall nevertheless be obliged to give the name and address (if he knows them) of the person to whom, or by or on behalf of whom, that communication was made.
(5) Any person who fails, without reasonable excuse, to comply with subsection (2) or (4) shall be guilty of an offence and shall be liable on conviction —
(a)
in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction; or
(b)
in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
40B.
—(1) In relation to a licensed insurer incorporated outside Singapore or a foreign-owned licensed insurer incorporated in Singapore, a parent supervisory authority may, with the prior written approval of the Authority and under conditions of secrecy, conduct an inspection in Singapore of the books of the licensed insurer in Singapore in accordance with this section, if the following conditions are satisfied:
(a)
the inspection is required by the parent supervisory authority for the sole purpose of carrying out its supervisory functions;
(b)
the parent supervisory authority —
(i)
is prohibited by the laws applicable to the parent supervisory authority from disclosing information obtained by it in the course of the inspection to any other person; or
(ii)
has given to the Authority such written undertaking as to the confidentiality of the information obtained, as the Authority may determine; and
(c)
the parent supervisory authority has given a written undertaking to the Authority to comply with the provisions of this Act and such conditions as the Authority may impose under subsection (2).
(2) The Authority may at any time, whether before, on or after giving written approval for an inspection under this section, require the parent supervisory authority to comply with conditions relating to —
(a)
the classes of information to which the parent supervisory authority shall or shall not have access in the course of the inspection;
(b)
the conduct of the inspection;
(c)
the use or disclosure of any information obtained in the course of the inspection; and
(d)
such other matters as the Authority may determine.
(3) Subject to compliance by a parent supervisory authority with such conditions as the Authority may impose under subsection (2), a licensed insurer under inspection —
(a)
shall afford the parent supervisory authority access to such books of the licensed insurer under inspection, and provide such information (including information relating to the licensed insurer’s internal control systems) and facilities as may be required to conduct the inspection; and
(b)
shall not be required to afford the parent supervisory authority access to its books or to provide information or facilities at such times or at such places as would unduly interfere with the proper conduct of the normal daily business of the licensed insurer under inspection.
(4) A parent supervisory authority may, with the prior written approval of the Authority, appoint any person to conduct the inspection under subsection (1), and in such event, this section (other than this subsection) shall apply to the person as if a reference to the parent supervisory authority or any official of the parent supervisory authority in this section includes a reference to the person.
(5) Any licensed insurer which refuses or neglects, without reasonable excuse, to afford access to any book or provide any information or facility as may be required by this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
(6) In this section and section 40C, unless the context otherwise requires —
“foreign-owned”, in relation to a licensed insurer incorporated in Singapore, means a licensed insurer whose parent is incorporated, formed or established in a foreign country;
“parent”, in relation to a licensed insurer, means a financial institution which is able to exercise a significant influence over the direction and management of the licensed insurer or which has a controlling interest in the licensed insurer;
“parent supervisory authority” —
(a)
in relation to a licensed insurer incorporated outside Singapore, means the supervisory authority which is responsible, under the laws of the country or territory where the licensed insurer or its parent is incorporated, formed or established, for supervising the licensed insurer or its parent, as the case may be; or
(b)
in relation to a foreign-owned licensed insurer incorporated in Singapore, means the supervisory authority which has consolidated supervision authority over the licensed insurer.
[Act 11 of 2013 wef 18/04/2013]
40C.
—(1) Where a written report or any part thereof (referred to in this section as the report) has been produced in respect of any licensed insurer in Singapore —
(a)
by the Authority upon an inspection under section 40 or an investigation under section 40A; or
(b)
by a parent supervisory authority upon an inspection under section 40B,
the report shall not be disclosed by the licensed insurer, or any officer or auditor of the licensed insurer, to any other person except in the circumstances provided under subsection (2).
(2) Disclosure of the report referred to in subsection (1) may be made —
(a)
by the licensed insurer in Singapore to any officer or auditor of that licensed insurer, solely in connection with the performance of the duties of the officer or auditor, as the case may be, in that licensed insurer;
(b)
by any officer or auditor of the licensed insurer in Singapore to any other officer or auditor of that licensed insurer, solely in connection with the performance of their duties in that licensed insurer;
(c)
to the Authority, if requested by the Authority, where the report has been produced by a parent supervisory authority; or
(d)
to such other person as the Authority may approve in writing.
(3) In granting written approval for any disclosure under subsection (2)(d), the Authority may impose such conditions as it considers appropriate.
(4) The obligation on an officer or auditor of a licensed insurer referred to in subsection (1) shall continue after the termination or cessation of his employment or appointment at the licensed insurer.
(5) Any person who contravenes subsection (1) or fails to comply with any condition imposed by the Authority under subsection (3) shall be guilty of an offence and shall be liable on conviction —
(a)
in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or
(b)
in any other case, to a fine not exceeding $250,000.
(6) Any person to whom the report is disclosed and who knows or has reasonable grounds for believing, at the time of the disclosure, that the report was disclosed to him in contravention of subsection (1) shall be guilty of an offence, unless he proves that —
(a)
the disclosure was made contrary to his desire;
(b)
where the disclosure was made in any written form, he has as soon as practicable surrendered or taken all reasonable steps to surrender the report and all copies thereof to the Authority; and
(c)
where the disclosure was made in an electronic form, he has as soon as practicable taken all reasonable steps to ensure that all electronic copies of the report have been deleted, and that the report and all copies thereof in other forms have been surrendered to the Authority.
(7) In this section, unless the context otherwise requires, “officer”, in relation to a licensed insurer, includes —
(a)
a director, a secretary or an employee of the insurer;
(b)
a receiver or manager of any part of the undertaking of the insurer appointed under a power contained in any instrument; and
(c)
the liquidator of the insurer appointed in a voluntary winding up.
[Act 11 of 2013 wef 18/04/2013]
Division 3 — Powers where licensed insurer or insurance intermediary is unable to meet obligations, etc.
41.
—(1) The Authority may exercise one or more of the powers specified in subsection (2) as appears to it to be necessary where —
(a)
the Authority is satisfied that —
(i)
the affairs of any relevant person are being conducted in a manner which is likely to be detrimental to the public interest or the interest of the policy owners or prejudicial to the interest of the relevant person;
(ii)
a relevant person is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it is about to suspend payments;
(iii)
a relevant person has contravened any of the provisions of this Act; or
(iv)
a relevant person has failed to comply with any conditions attached to its registration (if any), or licence, as the case may be;
(b)
a relevant person informs the Authority that it is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it has suspended or is about to suspend payments;
(c)
a relevant person becomes unable to meet its obligations, or is insolvent, or suspends payments; or
(d)
the Authority considers it in the public interest to do so.
(2) The Authority may exercise all or any of the following powers for the purposes of subsection (1):
(a)
issue such directions to require the relevant person to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary, including —
(i)
recruiting such management personnel as may be necessary to enable it to conduct its business in accordance with sound insurance principles;
(ii)
removing any of its directors or any person whom the Authority considers unfit to be associated with it;
(iii)
taking action as to the disposition or recovery of its property;
(iv)
taking any available steps for the recovery by the relevant person, as the case may be, of sums appearing to the Authority to have been illegally or improperly paid;
(v)
in the case of a licensed insurer, stopping the renewal or issuance of further policies of the class of business which the insurer is carrying on;
(vi)
making such arrangements with respect to reinsurance as the Authority so specifies; or
(vii)
taking action to make good any default under section 16, 17, 18, 19, 20, 35ZC or 35ZD;
(b)
subject to subsection (3), assume control of and manage such of the business of a licensed insurer as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms and conditions as the Authority may specify.
(3) In the case of a licensed insurer incorporated outside Singapore, any appointment of a statutory manager or any assumption of control by the Authority of any business of the licensed insurer under subsection (2) shall only be in relation to —
(a)
the business and affairs of the licensed insurer carried on, or managed in or from, Singapore; and
(b)
the property of the licensed insurer located in Singapore, or reflected in the books of the licensed insurer in Singapore, as the case may be, in relation to its operations in Singapore.
(4) Where the Authority appoints 2 or more persons as the statutory manager of a licensed insurer, it shall specify, in the terms and conditions of the appointment, which of the duties, functions and powers of the statutory manager —
(a)
may be discharged or exercised by such persons jointly and severally;
(b)
shall be discharged or exercised by such persons jointly; and
(c)
shall be discharged or exercised by a specified person or such persons.
(5) Where the Authority has exercised any power under subsection (2), it may, at any time and without prejudice to its power under section 12(2)(l), do one or more of the following:
(a)
vary or revoke any requirement of any appointment made by or any action taken by the Authority in the exercise of such power, on such terms and conditions as it may specify;
(b)
further exercise any of the powers under subsection (2);
(c)
add to, vary or revoke any term or condition specified by the Authority under this section.
(6) No liability shall be incurred by a statutory manager as a result of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —
(a)
the exercise or purported exercise of any power under this Act;
(b)
the performance or purported performance of any function or duty under this Act; or
(c)
the compliance or purported compliance with this Act.
(7) Any relevant person who fails to comply with any direction of the Authority under this section shall be guilty of an offence and shall be liable on conviction —
(a)
in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction; or
(b)
in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
41A.
—(1) Upon assuming control of the relevant business of a licensed insurer, the Authority or statutory manager, as the case may be, shall take custody or control of the relevant business.
(2) During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer, the Authority or statutory manager shall manage the relevant business of the licensed insurer in the name of and on behalf of the insurer and shall be deemed to be an agent of the insurer.
(3) In managing the relevant business of a licensed insurer, the Authority or statutory manager —
(a)
shall take into consideration the interests of the policy owners of the licensed insurer; and
(b)
shall have all the duties, powers and functions of the members of the board of directors of the licensed insurer (collectively and individually) under this Act, the Companies Act (Cap. 50) and the constitution of the licensed insurer, including powers of delegation, in relation to the relevant business of the licensed insurer; but nothing in this paragraph shall require the Authority or the statutory manager to call any meeting of the licensed insurer under the Companies Act, the Co-operative Societies Act (Cap. 62) or the constitution of the licensed insurer.
(4) Notwithstanding any written law or rule of law, upon the assumption of control of the relevant business of a licensed insurer by the Authority or statutory manager —
(a)
where the licensed insurer is established or incorporated in Singapore, any appointment of a person as a chief executive or director of the licensed insurer; or
(b)
where the licensed insurer is established or incorporated outside Singapore, any appointment of a person as a chief executive of the insurer in so far as the appointment relates to the relevant business of the licensed insurer,
which was in force immediately before the assumption of control, shall be deemed to be revoked unless the Authority gives its approval, by notice in writing to the person and the licensed insurer, for the person to remain in the appointment.
(5) Notwithstanding any written law or rule of law, during the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer, no person shall be appointed —
(a)
where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the licensed insurer; or
(b)
where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer, in so far as the appointment relates to the relevant business of the licensed insurer,
except with the approval of the Authority.
(6) Where the Authority has given its approval under subsection (4) or (5) for a person to remain in the appointment of, or for a person to be appointed as, a chief executive or a director of a licensed insurer, the Authority may at any time, by notice in writing to the person and the licensed insurer, revoke its approval and such appointment shall be deemed to be revoked on the date specified in the notice.
(7) Notwithstanding any written law or rule of law, if any person, whose appointment as a chief executive or director of a licensed insurer is revoked under subsection (4) or (6), acts or purports to act after the revocation —
(a)
where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the insurer; or
(b)
where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer in relation to the relevant business of the insurer,
during the period when the Authority or statutory manager is in control of the relevant business of the licensed insurer —
(i)
the act or purported act of the person shall be invalid and of no effect; and
(ii)
the person shall be guilty of an offence.
(8) Notwithstanding any written law or rule of law, if any person who is appointed as a chief executive or director of a licensed insurer in contravention of subsection (5) acts or purports to act —
(a)
where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the licensed insurer; or
(b)
where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer in relation to the relevant business of the licensed insurer,
during the period when the Authority or statutory manager is in control of the relevant business of the licensed insurer —
(i)
the act or purported act of the person shall be invalid and of no effect; and
(ii)
the person shall be guilty of an offence.
(9) During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer —
(a)
if there is any conflict or inconsistency between —
(i)
a direction or decision given by the Authority or statutory manager (including a direction or decision to a person or body of persons referred to in sub-paragraph (ii)); and
(ii)
a direction or decision given by a chief executive, director, member, executive officer, employee, agent or office holder, or the board of directors, of the licensed insurer,
the direction or decision referred to in sub-paragraph (i) shall, to the extent of the conflict or inconsistency, prevail over the direction or decision referred to in sub-paragraph (ii); and
(b)
no person shall exercise any voting or other right attached to any share in the licensed insurer in any manner that may defeat or interfere with any duty, function or power of the Authority or statutory manager, and any such act or purported act shall be invalid and of no effect.
(10) Any person who is guilty of an offence under subsection (7) or (8) shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction.
(11) In this section, “constitution of the licensed insurer” means the memorandum of association and articles of association of the licensed insurer or other instrument under which the licensed insurer is established or incorporated.
[Act 11 of 2013 wef 18/04/2013]
41B.
—(1) The Authority shall cease to be in control of the relevant business of a licensed insurer when the Authority is satisfied that the reasons for its assumption of control of the relevant business have ceased to exist or that it is no longer necessary for the protection of the policy owners of the licensed insurer.
(2) A statutory manager shall be deemed to have assumed control of the relevant business of a licensed insurer on the date of his appointment as a statutory manager.
(3) The appointment of a statutory manager in relation to the relevant business of a licensed insurer may be revoked by the Authority at any time —
(a)
if the Authority is satisfied that the reasons for the appointment have ceased to exist or that it is no longer necessary for the protection of the policy owners of the licensed insurer; or
(b)
on any other ground,
and upon such revocation, the statutory manager shall cease to be in control of the relevant business of the licensed insurer.
(4) The Authority shall publish in the Gazette the date, and such other particulars as it thinks fit, of —
(a)
its assumption of control of the relevant business of a licensed insurer;
(b)
the cessation of its control of the relevant business of a licensed insurer;
(c)
the appointment of a statutory manager in relation to the relevant business of a licensed insurer; and
(d)
the revocation of a statutory manager’s appointment in relation to the relevant business of a licensed insurer.
[Act 11 of 2013 wef 18/04/2013]
41C.
—(1) During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer —
(a)
the High Court may, on an application of the Authority or statutory manager, direct any person who has ceased to be or who is still a chief executive, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the licensed insurer to pay, deliver, convey, surrender or transfer to the Authority or statutory manager, within such period as the High Court may specify, any property, book, accounts, record or other documents, whether in electronic, print or other form, of the insurer which is comprised in, forms part of or relates to the relevant business of the insurer, and which is in the person’s possession or control; and
(b)
any person who has ceased to be or who is still a chief executive, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the insurer shall give to the Authority or statutory manager such information as the Authority or statutory manager may require for the discharge of its or his duties or functions, or the exercise of its or his powers, in relation to the licensed insurer, within such time and in such manner as may be specified by the Authority or statutory manager.
(2) Any person who —
(a)
without reasonable excuse, fails to comply with subsection (1)(b); or
(b)
in purported compliance with subsection (1)(b), knowingly or recklessly furnishes any information or document that is false or misleading in a material particular,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
41D. The Authority may at any time fix the remuneration and expenses to be paid by a licensed insurer —
(a)
to a statutory manager appointed in relation to a licensed insurer, whether or not the appointment has been revoked; and
(b)
where the Authority has assumed control of the relevant business of the licensed insurer, to the Authority and any person employed or authorised by the Authority under section 50 in relation to its assumption of control of the relevant business, whether or not the Authority has ceased to be in control of the relevant business.
[Act 11 of 2013 wef 18/04/2013]
41E.
—(1) The High Court may, on the application of the Authority, if it considers it to be in the interests of the policy owners of a licensed insurer, make one or more of the following orders:
(a)
that no resolution shall be passed, and no order shall be made, for the winding up of the licensed insurer;
(b)
that no proceedings shall be commenced or continued by or against the licensed insurer in respect of any business of the licensed insurer;
(c)
that no execution, distress or other legal process shall be commenced, levied or continued against any property of the licensed insurer;
(d)
that no steps shall be taken to enforce any security over any property of the licensed insurer or to repossess from the licensed insurer any goods under any hire-purchase agreement, chattels leasing agreement or retention of title agreement;
(e)
that no steps shall be taken by any person, other than a person specified in the order, to sell, transfer, assign or otherwise dispose of any property of the licensed insurer.
(2) Any sale, transfer, assignment or other disposition of any property of the licensed insurer in contravention of any order made under subsection (1)(e) shall be void.
(3) Any order made under subsection (1) shall be valid for a period not exceeding 6 months.
[Act 11 of 2013 wef 18/04/2013]
41F. In sections 41 to 41E, unless the context otherwise requires —
“business” includes affairs and property;
“office-holder”, in relation to a licensed insurer, means any person acting in relation to the insurer as its liquidator, provisional liquidator, receiver, receiver and manager or an equivalent person;
“property” includes property, right and power of every description;
“relevant business” means any business of a licensed insurer —
(a)
which the Authority has assumed control of under section 41; or
(b)
in relation to which a statutory manager has been appointed under section 41;
“relevant person” means a licensed insurer or an insurance intermediary;
“statutory manager” means a statutory manager appointed under section 41.
[Act 11 of 2013 wef 18/04/2013]