Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Designation of company to be 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.
Objects, functions and powers of Agency
57.—(1) Subject to the provisions of this Act, the objects of the Agency are —(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 limiting subsection (1), the functions of the Agency 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 out of the PPF Life Fund and the PPF General Fund in respect of protected liabilities to any covered party after the Agency has determined the covered party’s 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 payments to a trustee of a resolution fund established for a resolution measure undertaken for a DI Scheme member; (f) make interim payments of compensation, of such amounts as the Agency considers appropriate, out of the PPF Life Fund and the PPF General Fund to any covered party; (g) where the transfer of the whole or part of the insurance business from a failed PPF Scheme member, or from a company set up to hold the insured policies of the 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; (h) 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; (i) 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; (j) carry out the termination of insured policies issued by a failed PPF Scheme member and make payment out of the PPF Life Fund or the PPF General Fund to fund such termination; (k) 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; (l) claim from the failed PPF Scheme member for reimbursement of the amount of compensation paid to covered parties out of the PPF Life Fund or the PPF General Fund, together with any accrued interest; (m) 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; (n) 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 covered parties out of the PPF Life Fund or the PPF General Fund, together with any accrued interest; (o) educate the public on the DI Scheme and the PPF Scheme; (p) submit to the liquidator of a failed DI Scheme member a consolidated proof of debt on behalf of insured depositors of a failed DI Scheme member in relation to each of their insured deposits placed with the failed DI Scheme member that exceeds the Maximum DI Coverage.[31/2017; 31/2018] (3) The Agency has 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) Without limiting subsection (3), the Agency may —(a) for the purpose of making payments of compensation to insured depositors in respect of their insured deposits under the DI Scheme, raise loans by means of a charge over the assets of the DI Fund; and (b) for the purpose of making payments out of the PPF Life Fund or the PPF General Fund, raise loans by means of a charge over the assets of the PPF Life Fund or the PPF General Fund.[31/2018] (5) Despite sections 9(5) 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 estimates and supplementary estimates of income and expenditure of the DI Fund, PPF Life Fund and PPF General Fund.[31/2018]
Amendment to constitution of Agency
58.—(1) Despite any provision in the Companies Act 1967, the Agency must not amend the constitution of the Agency without the prior approval of the Minister.[31/2018] (2) Any amendment made to the constitution of the Agency without the prior approval of the Minister is void.[31/2018]
Appointment of board of directors
59.—(1) This section has effect despite any provision in the Companies Act 1967 and the constitution of the Agency.[31/2018] (2) The board of directors of the Agency consists of —(a) a Chairperson who must be appointed by the board of directors; and (b) not less than 4 but not more than 9 other directors. (3) A director holds office for a term not exceeding 3 years and is eligible for re‑appointment. (4) No person may be appointed as or remain a director on the board of directors if the person 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 meaning given by section 4(1) of the Companies Act 1967; “substantial shareholder” has the meaning given by section 81 of the Companies Act 1967.
Board to be accountable to Minister
60. The board of directors is accountable to the Minister for its acts and decisions.
Salaries, fees and allowances payable to Chairperson and directors
61. There are to be paid to the Chairperson 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 determine upon the recommendation of the Agency.
Appointment of Chief Executive, officers and employees, etc.
62.—(1) The board of directors must appoint a Chief Executive on such terms and conditions as the board may determine. (2) The Chief Executive is —(a) known by such designation as the board of directors may determine; and (b) 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 or her 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 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.
Rules issued by Agency for DI Scheme and PPF Scheme
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 limiting 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 the PPF Scheme members; (e) the manner in which compensation is to be paid to the following persons:(i) insured depositors and persons mentioned in section 22(7) from the DI Fund; (ii) any covered party from the PPF Life Fund and 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 and any covered party for the purpose of computing the amount of compensation that is to be paid to the covered party.[31/2018] (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 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) To avoid doubt, no person, other than the Agency, a DI Scheme member or a PPF Scheme member, has any right to enforce the observance of or compliance with any of the Rules where such Rule is relevant. (6) To avoid doubt, any Rules issued under this section are deemed not to be subsidiary legislation. (7) No Rule issued by the Agency may be inconsistent with any regulations made by the Authority under this Act and any such Rule which is so inconsistent is, to the extent of inconsistency, void.
Regulations on disclosure and operational preparedness
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, covered parties, 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.[31/2018] (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 DI Scheme members or PPF Scheme members must have in place; (b) the appointment of one or more independent persons to assess the operational preparedness of DI Scheme members or PPF Scheme members; (c) the employment of requisite personnel and qualified persons by DI Scheme members or PPF Scheme members in respect of the proper functioning of their 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 of a day 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 of a day during which the offence continues after conviction. (5) Any DI Scheme member or PPF Scheme member which in purported compliance with the regulations made under this section, without reasonable care, discloses any information that is inaccurate, false or misleading, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000.[31/2018]
Power of court to order observance of or compliance with Rules
65.—(1) Where any person who is bound to observe or comply with the Rules fails to do so, the General Division of the High Court may, on the application of the Agency, a DI Scheme member or a PPF Scheme member, and after giving the firstmentioned person an opportunity to be heard, make an order directing the firstmentioned person to observe or comply with those Rules.[40/2019] (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.
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Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. Read the official text ↗
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