Singapore legislation
Section 8
Section 8
Maintenance of assets in Singapore
(1)
The Authority may by regulations require a Scheme member, or a class of Scheme members, to maintain, in relation to its insured deposit base, such minimum amount of assets in Singapore as may be specified in the regulations for meeting its liabilities in respect of insured deposits placed with the Scheme member.
(2)
The Authority may make regulations which are necessary or expedient for carrying out the purposes of this section, including regulations for or with respect to —
the circumstances under which, and the manner in which, the Authority may impose an asset maintenance requirement;
the types of assets that are to be treated as assets maintained in Singapore and the minimum amount of assets for the purpose of an asset maintenance requirement; and
the method for the valuation of assets maintained in Singapore.
(3)
If the Authority is satisfied that a Scheme member has failed to comply with any asset maintenance requirement under subsection (1), the Authority may by notice in writing to the Scheme member, impose a financial penalty.
(4)
The financial penalty shall be of an amount not exceeding the interest calculated per day on the deficiency in the amount of assets necessary to comply with the asset maintenance requirement, for every day or part thereof during which there is a deficiency.
(5)
For the purposes of subsection (4), the interest shall be calculated at the rate of 10% above SIBOR.
(6)
Before imposing a financial penalty on a Scheme member, the Authority shall —
give the Scheme member notice in writing of its intention to do so, including the basis for its decision to impose the financial penalty; and
in the notice referred to in paragraph (a), call upon the Scheme member to show cause within such time as may be specified in the notice why the financial penalty should not be imposed.
(7)
If the Scheme member referred to in subsection (6) —
fails to show cause within the time specified in the notice or within such extended period of time as the Authority may allow; or
fails to show sufficient cause,the Authority shall give notice in writing to the Scheme member of the date by which the payment of the financial penalty is to be made.
(8)
Where a Scheme member is given a notice under subsection (7), the Scheme member shall pay the financial penalty to the Authority by the date of payment specified in the notice.
(9)
Any financial penalty payable under this Act shall be recoverable as a debt due to the Authority by the Scheme member.
(10)
Notwithstanding any provision in the Limitation Act (Cap. 163), an action to recover any financial penalty recoverable by virtue of this section shall not be brought after the expiration of 3 years from the date on which the cause of action accrued.
(11)
Any financial penalty paid to or recovered by the Authority shall be paid into the Fund.
(12)
Where the Authority has commenced any proceedings in a court to recover a financial penalty from a Scheme member, the Authority shall be entitled to claim costs on a full indemnity basis from that Scheme member.
(13)
Any Scheme member who is aggrieved by a decision of the Authority to impose a financial penalty under subsection (3) may, within 30 days of the decision of the Authority, appeal in writing to the Minister whose decision shall be final and shall be given effect to by the Authority.
(14)
In this section, “SIBOR” means the Singapore Interbank Offer Rate for such tenor and determined in such manner as may be prescribed by the Authority.[HK DPS Ord 2004, s. 53 (2) (a) to (d); Banking 2003 Ed., s. 38]