In force2020 Revised Edition

Contents

Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 · 2020 Revised Edition · Part 2 · Deposit Insurance Scheme

6. Exemption from DI Scheme membership

Feedback & support

(1)

Any 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 DI Scheme member.

(2)

Upon an application by a full bank or finance company under subsection (1), the Authority may, subject to subsection (4), exempt the full bank or finance company from the requirement under section 5(1), and notice of every such exemption must be published in the Gazette.

(3)

The Authority may require the applicant to provide the Authority with such information or documents as the Authority considers necessary in relation to the application.

(4)

Without limiting subsection (2), the Authority must, in determining whether to grant an exemption under subsection (2), have regard to —

(a)

the scope of deposit-taking business conducted by the applicant in Singapore;

(b)

in the case of any applicant which is a full bank incorporated in a jurisdiction other than Singapore —

(i)

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 (called in this section the foreign scheme); and

(ii)

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 DI Scheme if those deposits were insured by the DI Scheme; and

(c)

the business activities conducted by the applicant in Singapore and its obligations to customers.

(5)

The Authority may, when granting any exemption under subsection (2), impose on the DI exempt member by written notice such conditions or restrictions relating to the exemption as the Authority may think fit.

(6)

The Authority may at any time —

(a)

by written notice to a DI exempt member, add to, vary or revoke any existing condition or restriction imposed by the Authority under subsection (5); or

(b)

by written notice to every DI exempt member in a particular class of such DI exempt members impose such conditions or restrictions as the Authority may think fit on the class.

(7)

Every DI exempt member must comply with all the conditions and restrictions imposed on it under subsections (5) and (6).

(8)

Any DI 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 of a day during which the offence continues after conviction.