Singapore legislation
Regulation 9
Regulation 9
Withdrawals from Child Development Account
Subregulation 1
A trustee may withdraw or cause the withdrawal of any moneys standing to the credit of a member in the member’s Child Development Account at any time before 1st January in the year in which the relevant anniversary of the member’s date of birth falls for —
the payment of any fee to —
an approved educational or developmental institution in connection with any educational or developmental courses provided to the member or his sibling by the approved educational or developmental institution; (ii)an approved healthcare service provider in connection with any licensable healthcare service provided to the member or his sibling by the approved healthcare service provider using a healthcare service site;
an approved healthcare-related institution in connection with any healthcare-related product or service specified in the Second Schedule provided to the member or his sibling by the approved healthcare-related institution, unless, in the opinion of the Director, the product or service is not used for the health or healthcare of the member or his sibling; or (iv)an approved childminding operator in connection with any childminding service provided to the member or his sibling by the approved childminding operator, unless, in the opinion of the Director, the service is not for the purposes of the Childminding Pilot for Infants;
(aa)the payment of any incidental charges or deposit for enrolment in connection with any educational or developmental course provided to the member or his sibling by an approved educational or developmental institution;
the payment of any premium payable in respect of insurance cover under the MediShield Life Scheme for the member or his sibling;
the payment to an insurer of any premium payable in respect of any integrated medical insurance plan or medisave‑approved plan of the member or his sibling; and
the purpose of depositing the moneys in a fixed deposit or time deposit account —
opened by the trustee on behalf of the member with the managing agent with whom the Child Development Account was opened; and
approved by the Director.
Subregulation 2
All withdrawals made from the Child Development Account by the trustee under paragraph (1)(a), (aa), (b) and (c) shall —
be made by inter-bank GIRO or NETS, unless the Director otherwise permits; and
if required by the Director, be supported by such evidence as the Director may specify.
Subregulation 2A
The Director shall not approve a fixed deposit or time deposit account under paragraph (1)(d)(ii) unless he is satisfied that the terms for the opening of the account provide that —
the account is to be maintained in Singapore dollars only;
no moneys standing to the credit of the account or interest paid on those moneys may be withdrawn before the expiry of the term of the account;
upon the expiry of the term of the account and unless the account is extended for another term, the managing agent must transfer the full amount deposited in the account together with any interest paid to the Child Development Account; and
where the Child Development Account is to be closed, the managing agent must, before the Child Development Account is closed, close the account notwithstanding that the term of the account may not have expired by then, and transfer the full amount deposited in the account together with any interest paid to the Child Development Account.
Subregulation 2B
A managing agent shall not, without the approval of the Director, vary any of the terms referred to in paragraph (2A)(a) to (d).
Subregulation 3
Where the trustee of a member’s Child Development Account wishes to withdraw the moneys standing to the credit of the member in the Account for a purpose other than that specified in paragraph (1) or for any other reason, he shall seek the approval of the Director for withdrawal of the moneys from the Account.
Subregulation 4
The Director may, before approving the withdrawal referred to in paragraph (3), require the trustee to provide such information or documents as he considers necessary to support the trustee’s request for the withdrawal.
Subregulation 5
The Director may approve the withdrawal of the whole or such part of the moneys standing to the credit of a member’s Child Development Account for a purpose other than that specified in paragraph (1) or for any other reason if he is satisfied that —
the circumstances of the case warrants such withdrawal; and
the withdrawal can be made before 1st January in the year in which the relevant anniversary of the member’s date of birth falls.
Subregulation 6
A withdrawal approved by the Director under paragraph (5) —
shall be effected by such means and in such manner as the Director may determine; and
shall not be made unless it is effected before 1st January in the year in which the relevant anniversary of the member’s date of birth falls.
Subregulation 7
Any trustee who, without the approval of the Director under paragraph (5), makes a withdrawal from the Child Development Account for any purpose other than that specified in paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
Subregulation 8
Paragraphs (5)(b) and (6)(b) shall not apply to any withdrawal referred to in regulation 10(2)(c)(iii) or (3C)(b)(iii).
Subregulation 9
In this regulation, “relevant anniversary”, in relation to a member born on or after 1 January 2009, means the thirteenth anniversary.