Singapore legislation
Clause 6
Clause 6
Exemption from membership
(1)
A full bank or finance company may apply in writing to the Authority to be exempted from the requirement under section 5(1) to be a Scheme member.
(2)
The Authority may, by notification published in the Gazette, exempt a full bank or finance company referred to in subsection (1) from the requirement under section 5(1).
(3)
The Authority may require an applicant to furnish it with such information or documents as the Authority considers necessary in relation to the application.
(4)
Without prejudice to the generality of subsection (2), the Authority shall, in determining whether to grant an exemption under subsection (2), have regard to —
the scope of deposit-taking business conducted by the full bank or finance company, as the case may be, in Singapore; and
in the case of a full bank which is incorporated in a jurisdiction other than Singapore —
whether the deposits accepted by its branches and offices located within Singapore are insured by a deposit insurance scheme, or any other scheme of a similar nature, established and maintained in the jurisdiction in which the full bank is incorporated (referred to in this section as the foreign scheme); and
whether the scope and level of protection available to those deposits under the foreign scheme are not less than the scope and level of protection that would be available to the deposits under the Scheme if those deposits were insured by the Scheme.
(5)
The Authority may, by notice in writing, impose on an exempt member such conditions or restrictions relating to the exemption as the Authority may think fit.
(6)
The Authority may at any time —
by notice in writing to an exempt member, add to, vary or revoke any existing condition or restriction imposed by the Authority under subsection (5); or
by notice in writing impose such conditions or restrictions as the Authority may think fit on a class of exempt members.
(7)
An exempt member shall comply with all conditions or restrictions imposed on it under subsection (5) or (6), as the case may be.
(8)
Any exempt member which contravenes subsection (7) 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 of $10,000 for every day or part thereof during which the offence continues after conviction.