Singapore legislation
Regulation 12
of Income Tax (Supplementary Retirement Scheme) Regulations 2003
Regulation 12
Financial product providers
Subregulation 1
A financial product provider shall —
provide such information to an SRS operator as may be necessary to enable the SRS operator to fulfil its duties and obligations under the SRS;
ensure that the amount standing to an account with the provider in which a deposit has been made using SRS funds of an SRS member does not at any time fall below the sum of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account; (c) ensure that on the closure of an account with the provider in which a deposit has been made using SRS funds of an SRS member, a sum comprising the amount of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account, is transferred to the member’s SRS account;
ensure that on the instruction of an SRS member who has made a deposit of SRS funds to transfer from the account in which the SRS funds are deposited to his SRS account a sum comprising not more than the amount of the SRS funds deposited and all gains and interest derived therefrom (less any amount that has been transferred to his SRS account), the sum is so transferred; and
subject to paragraph (4), ensure that all gains or profits derived from any investment (other than a deposit) acquired from the provider using the SRS funds of an SRS member, and all proceeds of sale of such investment are returned to the SRS account of the member.
Subregulation 1A
A financial product provider shall not enter into any arrangement with an SRS member with respect to the use of that SRS member’s SRS funds the purpose or one of the purposes of which is to reduce or avoid any liability imposed or which would otherwise have been imposed by or under section 10L of the Act or any provision of these Regulations.
Subregulation 2
Where a financial product provider has contravened any provision of these Regulations, the Minister may, in his discretion, prohibit the financial product provider from participating in the SRS.
Subregulation 3
Upon the occurrence of the events stated under section 10L(8) of the Act, a financial product provider that is an insurance company —
shall comply with regulation 4(1)(a) to (d), (2) and (3) as if it were an SRS operator in respect of annuity payments made by the financial product provider to an SRS member under a life insurance policy; and
shall be liable under those regulations in the same way as if the financial product provider were an SRS operator.
Subregulation 4
Upon receipt of information of the death of an SRS member who made any deposit with it using his SRS funds or who acquired any other investment from it using his SRS funds, the financial product provider shall —
forward such information to the Comptroller or the SRS operator of that SRS member immediately;
make payment under any insurance policy acquired using the SRS funds of such SRS member in accordance with the relevant law;
in making payment to beneficiaries under any insurance policy taken up by any deceased SRS member who is not a citizen of Singapore, account to the Comptroller for the withholding tax imposed under section 45E of the Act, and be subject to all the requirements relating to such withholding tax; and
if the death of the SRS member occurred after the end of the period stipulated under section 10L(5) of the Act, furnish information relating to the payments referred to under sub-paragraphs (b) and (c) in a form and manner acceptable to the Comptroller, by 15th February of the year following the year of payment or by such other date as the Comptroller may allow.
Subregulation 5
For the purpose of paragraphs (3) and (4), where a financial product provider which is an insurance company, in contravention of any provision of the Act relating to the SRS or these Regulations —
fails, without reasonable excuse, to deduct any amount of tax or penalty which it is required to deduct; or
makes any wrongful or unauthorised payments under the SRS,the financial product provider shall pay to the Comptroller the tax undercharged or the penalty, as the case may be.
Subregulation 6
A financial product provider who fails to comply with paragraph (1), (1A), (3) or (4) shall be guilty of an offence.
Subregulation 7
Paragraph (1)(b) to (e) does not apply to an investment if a sum representing the investment has been deducted from the balance in an SRS account pursuant to an approval under regulation 14A.