In forceAmended2020 Revised Edition

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Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 · 2020 Revised Edition · Part 5 · Compensation Under di Scheme

22. Entitlement to compensation

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Amended

Last amended by an amending law of 2022. 2 amendments in all.

(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 CPFRS), which —

(a)

the insured depositor holds in the insured depositor’s own right;

(b)

the insured depositor holds in the insured depositor’s own right jointly with one or more other persons in a joint account;

(c)

the insured depositor holds in the name of the insured depositor’s sole‑proprietorship; or

(d)

consists of moneys denominated in Singapore dollars placed with the failed DI Scheme member under the Supplementary Retirement Scheme,the insured depositor is 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 must not exceed the aggregate amount of such insured deposits or the Maximum DI Coverage, whichever is 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 CPFRS) which the insured depositor holds in an account as trustee under a trust or holds in a client account, the insured depositor is 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 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) must 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 CPFRS, such moneys must not be aggregated with the insured depositor’s 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 is entitled, in respect of moneys denominated in Singapore dollars placed with the failed DI Scheme member under the CPFIS and CPFRS, 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 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 in the Gazette, determined to be subject to separate coverage under the DI Scheme (called in this section the firstmentioned prescribed products), whether on their own or in aggregation with other prescribed products (called in this section the other prescribed products) —

(a)

the insured depositor is entitled to compensation from the DI Fund computed on the basis of the aggregate amount, as at the quantification date —

(i)

of the firstmentioned prescribed products; or

(ii)

of the firstmentioned prescribed products in aggregation with the other prescribed products,as the case may be; and

(b)

such compensation must not exceed —

(i)

in the case where the firstmentioned prescribed products are subject to separate coverage on their own, the aggregate of the amounts of all the firstmentioned prescribed products held by the insured depositor or the Maximum DI Coverage, whichever is lower; or

(ii)

in the case where the firstmentioned prescribed products are to be aggregated with the other prescribed products, the aggregate of the amounts of all the prescribed products held by the insured depositor or the Maximum DI Coverage, whichever is 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 are disregarded.

(7)

Despite the provisions in this section —

(a)

in the case of an insured depositor who is deceased, the Agency must pay the compensation to the personal representatives of the deceased insured depositor;

(b)

in the case where, before the quantification date —

(i)

an enforcement order for attachment of a debt was made under the Rules of Court in respect of the insured deposit; and

(ii)

pursuant to the enforcement order, a notice of attachment with respect to the insured deposit was served on the failed DI Scheme member,the Agency —

(iii)

must, subject to any order of the court in determining any objection to the enforcement order, pay the whole or part (as the case may be) of the compensation to the enforcement applicant; but(iv)is not required to pay the compensation if the insured deposit is released from attachment (whether by the consent of the enforcement applicant or otherwise); and

(c)

the Agency must pay the compensation to such other persons in such circumstances as the Minister may prescribe.

Terms defined in s 2

Agency
Defined · s 2
“Agency” means the company designated by the Minister under section 56 to be the deposit insurance and policy owners’ protection fund agency;
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client account
Defined · s 2
“client account”, in relation to an insured depositor, means an account maintained by the insured depositor with a DI Scheme member for the purpose of holding moneys by the insured depositor for a client of the insured depositor, whether or not other moneys may be held in that account;
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CPFIS
Defined · s 2
“CPFIS” means the Central Provident Fund Investment Scheme introduced by the Central Provident Fund Board under the Central Provident Fund (Investment Schemes) Regulations;
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CPFRS
Defined · s 2
“CPFRS” means any Retirement Sum Scheme established under any regulations made under section 77(1) of the Central Provident Fund Act 1953;
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DI Fund
Defined · s 2
“DI Fund” means the Deposit Insurance Fund reconstituted under section 9;
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DI Scheme
Defined · s 2
“DI Scheme” means the Deposit Insurance Scheme reconstituted under section 4;
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failed DI Scheme member
Defined · s 2
“failed DI Scheme member” means a DI Scheme member in respect of which the Authority has made a determination that compensation is to be paid out of the DI Fund under section 21(1), and any reference to “failure” in relation to a DI Scheme member is to be construed accordingly;
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insured deposit
Defined · s 2
“insured deposit” has the meaning given in the First Schedule;
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insured depositor
Defined · s 2
“insured depositor” means any person who is not an excluded person and is entitled to the repayment of any insured deposit, whether or not the insured deposit is made by the person, and includes —(a)in the case of a deposit held by a trustee under a trust, the trustee; and(b)to avoid doubt, in the case of a deposit held by a depositor in a client account, the depositor;
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Maximum DI Coverage
Defined · s 2
“Maximum DI Coverage” has the meaning given in the First Schedule;
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quantification date
Defined · s 2
“quantification date” means —(a)in the case of a DI Scheme member —(i)that is wound up by a court in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(ii)that is wound up by a court in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(iii)that is wound up by a court in Singapore and by a court in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(iv)that is wound up voluntarily in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(v)that is wound up voluntarily in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(vi)that is wound up voluntarily in Singapore and in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018; or(vii)in respect of which the Authority determines that compensation be paid out of the DI Fund under section 21(1) (whether the DI Scheme member is subsequently wound up or not), the date on which the notice of payment of compensation is published in the Gazette under section 21(4); and(b)in the case of a PPF Scheme member —(i)that is wound up by a court in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(ii)that is wound up by a court in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(iii)that is wound up by a court in Singapore and by a court in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(iv)that is wound up voluntarily in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(v)that is wound up voluntarily in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(vi)that is wound up voluntarily in Singapore and in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(vii)that is a co-operative society in respect of which the Registrar of Co‑operative Societies has made an order cancelling the registration of that society under section 89(1) of the Co‑operative Societies Act 1979, the date of the order; or(viii)in respect of which the Authority has made a determination under section 46(1) that the PPF Life Fund or the PPF General Fund is to be utilised for one or more of the purposes mentioned in section 46(2) (whether the PPF Scheme member is subsequently wound up or not), the date on which the notification of the Authority’s determination is published in the Gazette under section 46(6);
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Rules
Defined · s 2
“Rules” means any rules issued by the Agency under section 63;
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Supplementary Retirement Scheme
Defined · s 2
“Supplementary Retirement Scheme” has the meaning given by section 2(1) of the Income Tax Act 1947;
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trust
Defined · s 2
“trust”, in relation to an insured policy which is covered under the PPF Life Fund or the PPF General Fund, means —(a)any trust of the policy moneys created under section 132(2) of the Insurance Act 1966;(b)any trust of the objects of the insured policy created under section 73 of the Conveyancing and Law of Property Act 1886;(c)any express trust created by the insured policy owner over the policy moneys; or(d)any resulting or constructive trust over the policy moneys;
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trustee
Defined · s 2
“trustee”, in relation to a resolution fund, means the entity appointed under section 99(2) of the Monetary Authority of Singapore Act 1970 as the trustee of the resolution fund;
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