Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 · 2020 Revised Edition · Part 5 · Compensation Under di Scheme
25. Computation and method of payment of compensation under DI Scheme
Feedback & supportLast amended by an amending law of 2018.
The Agency must compute the amount of compensation due to any insured depositor in respect of the insured depositor’s insured deposits placed with a failed DI Scheme member in accordance with this Act.
Agency
“Agency” means the company designated by the Minister under section 56 to be the deposit insurance and policy owners’ protection fund agency;
In determining the eligibility and entitlement of any insured depositor to compensation and computing the amount of compensation due to any insured depositor, the Agency is entitled to rely on the books of the failed DI Scheme member and any other books which, in the opinion of the Agency, are relevant for such determination and computation.
insured depositor
“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;
Subject to subsection (4), the Agency must pay the compensation in such form and manner as may be specified in the Rules.
The Authority may make regulations for the purposes of payment of compensation by the Agency.
Without limiting subsection (4), such regulations may —
specify the person to whom, or the account into which, payment of compensation is to be made for the benefit of any insured depositor who is entitled to compensation under this Act;
provide for the payment of compensation in respect of any insured depositor holding insured deposits in different accounts; (c)provide for the payment of compensation into an equivalent account with another DI Scheme member and for such compensation to be held in that account in a manner equivalent to the manner of holding of the original insured deposit; and
provide for the treatment of any transfer order which has not been cleared and settled under the Rules of a payment system, in the computation of compensation due to any insured depositor who is entitled to compensation under this Act.
In subsection (5)(d), “transfer order” and “Rules” have the meanings given by the Payment and Settlement Systems (Finality and Netting) Act 2002.