Singapore legislation
Clause 22
of Deposit Insurance and Policy Owners’ Protection Schemes Bill
Clause 22
Entitlement to compensation
(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 —
the insured depositor holds in his own right;
the insured depositor holds in his own right jointly with one or more other persons in a joint account;
the insured depositor holds in the name of his sole-proprietorship; or
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) —
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 the first-mentioned prescribed products; or
of the first-mentioned prescribed products in aggregation with the other prescribed products,as the case may be; and
such compensation shall not exceed —
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
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 —
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;
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
the Agency shall pay the compensation to such other persons in such circumstances as the Minister may prescribe.