Regulation 4

For the purposes of section 17(1)(a) of the Act, the fund solvency requirement that an SPRV must satisfy in respect of an insurance fund established and maintained by the SPRV under the Act is that the assets of the fund must not at any time be less than the liabilities of the fund.

For the purposes of section 17(1)(b) of the Act, the capital adequacy requirement that an SPRV must satisfy is that the assets of the SPRV must not at any time be less than the liabilities of the SPRV.

In computing the fund solvency requirement of an insurance fund and the capital adequacy requirement under paragraphs (1) and (2), respectively, any exchange translation reserves resulting from the translation of financial statements from a non‑Singapore dollar denominated functional currency to the presentation currency in Singapore dollar must be excluded.

An SPRV must immediately notify the Authority when the SPRV becomes aware that it has failed, or is likely to fail, to comply with paragraph (1) or (2).