Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011

These Regulations may be cited as the Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011 and shall come into operation on 1st May 2011.

In these Regulations, unless the context otherwise requires —“Accounting Standards” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);“advocate and solicitor” means an advocate and solicitor of the Supreme Court who has in force a practising certificate;“associated company” has the same meaning as the term “associate” defined in the Accounting Standards;“banking corporation” means —

any bank licensed by the Authority under the Banking Act (Cap. 19); or

any entity licensed, registered, approved or otherwise regulated as a bank in the country of establishment;“classified”, in relation to a credit facility, means any credit facility which has been categorised by a DI Scheme member as “substandard”, “doubtful” or “loss” pursuant to any notice in writing issued by the Authority under any written law;“company” and “corporation” have the respective meanings as in section 4(1) of the Companies Act;“counterparty related to the DI Scheme member” includes any holding company, subsidiary or associated company of the DI Scheme member, and any subsidiary or associated company of any holding company of the DI Scheme member;“credit facility” means —

the granting by a DI Scheme member of advances, loans and other facilities whereby a customer of the DI Scheme member has access to funds or financial guarantees; or

the incurring by a DI Scheme member of other liabilities on behalf of a customer;“debt security” includes any debenture, bond or note;“eligible asset” means any of the assets specified in the First Schedule which may be included by a DI Scheme member for the purposes of computing its asset maintenance ratio under regulation 5;“eligible pledged asset” has the meaning given to it by regulation 5(4);“foreign bank” means a full bank which is incorporated in a jurisdiction other than Singapore and has operating branches or offices located within Singapore;“holding company” and “subsidiary” have the respective meanings as in section 5 of the Companies Act (Cap. 50);“housing loan” means a credit facility granted to an individual for the purchase of residential property where the credit facility is secured on that property;“investment grade” means any of the following credit ratings issued by the respective credit rating agencies:

BBB-minus or better by Fitch Ratings; (b)Baa or better by Moody’s Investor Services; (c)BBB-minus or better by Standard and Poor’s Rating Services;“merchant bank” has the meaning given by section 2(1) of the Banking Act;“minimum cash balances” means the minimum cash balances maintained on deposit with the Authority by a bank as reserves against its deposit and other liabilities under section 39 of the Banking Act (Cap. 19);“minimum liquid assets” means the minimum amount or amounts of liquid assets held by a bank under section 38 of the Banking Act;“practising certificate” means a certificate issued by the Registrar under section 25 of the Legal Profession Act (Cap. 161);“share” has the same meaning as in section 4(1) of the Companies Act;“Singapore Government Securities” means any debt securities issued by the Government under any written law.

For the purposes of the definition of “premium year” in section 2(1) of the Act and subject to paragraph (2), the Authority hereby prescribes a premium year under section 12(4) of the Act to be the period beginning on 1st April of any year and ending on 31st March of the following year.

The first premium year shall be the period beginning on 1st May 2011 and ending on 31st March 2012.

For the purposes of the definition of “premium year” in section 2(1) of the Act and subject to paragraph (2), the Authority hereby prescribes a premium year under section 12(4) of the Act to be the period beginning on 1st April of any year and ending on 31st March of the following year.

The first premium year shall be the period beginning on 1st May 2011 and ending on 31st March 2012.

Every DI Scheme member which is a foreign bank shall maintain in relation to its insured deposit base, assets in Singapore for meeting its liabilities in respect of insured deposits placed with it, in the manner provided in paragraph (2).

For the purposes of paragraph (1), the foreign bank shall at all times maintain an asset maintenance ratio of not less than 1 as determined in accordance with regulation 5.

Every DI Scheme member which is a foreign bank shall maintain in relation to its insured deposit base, assets in Singapore for meeting its liabilities in respect of insured deposits placed with it, in the manner provided in paragraph (2).

For the purposes of paragraph (1), the foreign bank shall at all times maintain an asset maintenance ratio of not less than 1 as determined in accordance with regulation 5.

For the purposes of regulation 4(2) and subject to paragraphs (2), (3) and (4), the asset maintenance ratio is calculated in accordance with the formula:where —

A is the value of any eligible asset or eligible pledged asset which —

is reflected as an asset in the books of the DI Scheme member in relation to its operations in Singapore;

is free from any prior encumbrances;

does not arise or result from any contractual or other arrangement with, or investment in, a counterparty related to the DI Scheme member; and

is not used to meet any requirements in relation to minimum liquid assets or minimum cash balances;

B is the percentage applicable to a particular eligible asset or an eligible pledged asset specified in the second column of the First Schedule or Second Schedule, as the case may be; and

C is —

for the period between 1 April 2024 and 31 December 2024 (both dates inclusive), the aggregate of the following amounts of every insured depositor of the DI Scheme member as at 31 December 2023:

the aggregate of the amounts, not exceeding $100,000, of insured deposits placed with the DI Scheme member which —

are held by the insured depositor in its or his own right;

are held by the insured depositor in its or his own right jointly with one or more persons in a joint account;

where the insured depositor is a sole-proprietor, are held in the name of the sole-proprietorship; and

consist of moneys denominated in Singapore dollars placed with the DI Scheme member under the Supplementary Retirement Scheme;

the amount, not exceeding $100,000, of insured deposits held by the insured depositor as a trustee under a trust in every account opened with the DI Scheme member;

the amount, not exceeding $100,000, of insured deposits held by the insured depositor in every client account opened with the DI Scheme member;

any moneys denominated in Singapore dollars placed by the insured depositor with the DI Scheme member under the CPFIS and CPFRS, not exceeding $100,000;

where the foreign bank becomes a DI Scheme member during the course of a premium year or an exemption from the requirement to be a DI Scheme member granted to the foreign bank is withdrawn during the course of a premium year, the insured deposit base as at the date on which the foreign bank became a DI Scheme member; or

in any other case, the insured deposit base of the DI Scheme member as at 31 December of the preceding year.

For the purposes of paragraph (1)(c)(i) —

a reference to an insured deposit includes a reference to a part of the insured deposit;

where an insured depositor holds an insured deposit in its or his own right jointly with one or more persons in a joint account, each of them, whether or not it or he is an insured depositor, is deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the DI Scheme member; and

where there are 2 or more insured depositors holding any insured deposit in an account under a trust or a client account jointly, each of them is deemed to have an equal interest in the insured deposit.

For the purposes of paragraph (1), the value of an eligible asset or eligible pledged asset shall be determined in the following manner:

the value of an eligible asset shall be its carrying value;

the value of an eligible pledged asset shall be its market value.

For the purposes of paragraph (1), the DI Scheme member may include in the value of A, the value of an eligible asset against which a deposit has been pledged, charged or secured as collateral.

For the purposes of paragraph (1), an eligible pledged asset shall comprise any of the following types of assets, in respect of which the DI Scheme member has granted, on such terms and conditions as may be agreed with the Agency, a security interest, other than a contingent security interest, in favour of the DI Fund:

any Singapore dollar note or coin kept in Singapore;

any Singapore Government Securities or debt security issued by a statutory body in Singapore (including the Authority) and guaranteed by the Government;

any deposit placed with the Authority, after deducting any moneys due to the Authority;

any debenture or debt security issued by Singapore Sukuk Pte. Ltd.;

any debt security issued by a statutory body in Singapore (including the Authority) which is not guaranteed by the Government;

any debt security (other than that of a banking corporation or merchant bank) which has a long-term rating of investment grade;

any shares listed on a securities exchange and issued by a company (other than a banking corporation, a merchant bank or a counterparty related to the DI Scheme member) incorporated in Singapore; and

such shares listed on a securities exchange and issued by a company (other than a banking corporation, a merchant bank or a counterparty related to the DI Scheme member) established or incorporated outside Singapore as may be permitted by the Authority for inclusion in the computation of the asset maintenance ratio.

For the purposes of paragraph (4), where the Agency appoints an advocate and solicitor to act on its behalf in any particular transaction with a DI Scheme member to create a security interest over an eligible pledged asset, the Agency shall be entitled to claim costs on a full indemnity basis for the appointment of the advocate and solicitor from that DI Scheme member.

For the purposes of regulation 4(2) and subject to paragraphs (2), (3) and (4), the asset maintenance ratio is calculated in accordance with the formula:where —

A is the value of any eligible asset or eligible pledged asset which —

is reflected as an asset in the books of the DI Scheme member in relation to its operations in Singapore;

is free from any prior encumbrances;

does not arise or result from any contractual or other arrangement with, or investment in, a counterparty related to the DI Scheme member; and

is not used to meet any requirements in relation to minimum liquid assets or minimum cash balances;

B is the percentage applicable to a particular eligible asset or an eligible pledged asset specified in the second column of the First Schedule or Second Schedule, as the case may be; and

C is —

for the period between 1 April 2024 and 31 December 2024 (both dates inclusive), the aggregate of the following amounts of every insured depositor of the DI Scheme member as at 31 December 2023:

the aggregate of the amounts, not exceeding $100,000, of insured deposits placed with the DI Scheme member which —

are held by the insured depositor in its or his own right;

are held by the insured depositor in its or his own right jointly with one or more persons in a joint account;

where the insured depositor is a sole-proprietor, are held in the name of the sole-proprietorship; and

consist of moneys denominated in Singapore dollars placed with the DI Scheme member under the Supplementary Retirement Scheme;

the amount, not exceeding $100,000, of insured deposits held by the insured depositor as a trustee under a trust in every account opened with the DI Scheme member;

the amount, not exceeding $100,000, of insured deposits held by the insured depositor in every client account opened with the DI Scheme member;

any moneys denominated in Singapore dollars placed by the insured depositor with the DI Scheme member under the CPFIS and CPFRS, not exceeding $100,000;

where the foreign bank becomes a DI Scheme member during the course of a premium year or an exemption from the requirement to be a DI Scheme member granted to the foreign bank is withdrawn during the course of a premium year, the insured deposit base as at the date on which the foreign bank became a DI Scheme member; or

in any other case, the insured deposit base of the DI Scheme member as at 31 December of the preceding year.

For the purposes of paragraph (1)(c)(i) —

a reference to an insured deposit includes a reference to a part of the insured deposit;

where an insured depositor holds an insured deposit in its or his own right jointly with one or more persons in a joint account, each of them, whether or not it or he is an insured depositor, is deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the DI Scheme member; and

where there are 2 or more insured depositors holding any insured deposit in an account under a trust or a client account jointly, each of them is deemed to have an equal interest in the insured deposit.

For the purposes of paragraph (1), the value of an eligible asset or eligible pledged asset shall be determined in the following manner:

the value of an eligible asset shall be its carrying value;

the value of an eligible pledged asset shall be its market value.

For the purposes of paragraph (1), the DI Scheme member may include in the value of A, the value of an eligible asset against which a deposit has been pledged, charged or secured as collateral.

For the purposes of paragraph (1), an eligible pledged asset shall comprise any of the following types of assets, in respect of which the DI Scheme member has granted, on such terms and conditions as may be agreed with the Agency, a security interest, other than a contingent security interest, in favour of the DI Fund:

any Singapore dollar note or coin kept in Singapore;

any Singapore Government Securities or debt security issued by a statutory body in Singapore (including the Authority) and guaranteed by the Government;

any deposit placed with the Authority, after deducting any moneys due to the Authority;

any debenture or debt security issued by Singapore Sukuk Pte. Ltd.;

any debt security issued by a statutory body in Singapore (including the Authority) which is not guaranteed by the Government;

any debt security (other than that of a banking corporation or merchant bank) which has a long-term rating of investment grade;

any shares listed on a securities exchange and issued by a company (other than a banking corporation, a merchant bank or a counterparty related to the DI Scheme member) incorporated in Singapore; and

such shares listed on a securities exchange and issued by a company (other than a banking corporation, a merchant bank or a counterparty related to the DI Scheme member) established or incorporated outside Singapore as may be permitted by the Authority for inclusion in the computation of the asset maintenance ratio.

For the purposes of paragraph (4), where the Agency appoints an advocate and solicitor to act on its behalf in any particular transaction with a DI Scheme member to create a security interest over an eligible pledged asset, the Agency shall be entitled to claim costs on a full indemnity basis for the appointment of the advocate and solicitor from that DI Scheme member.

For the purposes of determining the premium rates applicable to DI Scheme members for any premium year, all DI Scheme members shall be classified into the categories specified in the first column of the Third Schedule.

The premium rate applicable to each category of DI Scheme members is specified in the second column of the Third Schedule.

For the purposes of determining the category in which a foreign bank shall be classified, the Authority shall compute the asset maintenance ratio of the foreign bank. (4) For the purposes of computing the asset maintenance ratio under paragraph (3), the Authority shall apply —

in the case where —

the foreign bank becomes a DI Scheme member during the course of a premium year; or

an exemption from the requirement to be a DI Scheme member granted to the foreign bank pursuant to section 6 of the Act is withdrawn during the course of a premium year,the average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months before it becomes a DI Scheme member over the insured deposit base as at the date it becomes a DI Scheme member;

in the case of the first premium year, the average of the numerator of the formula for computing the asset maintenance ratio set out in regulation 5 as at 31st March 2011, 30th April 2011 and 31st May 2011 over the insured deposit base as at 31st May 2011; (ba)in the case of the premium year beginning on 1 April 2024 and ending on 31 March 2025, the average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months of 2023, over the aggregate of the amounts as mentioned in regulation 5(1)(c)(i)(A) to (D) of every insured depositor of the foreign bank, as at 31 December 2023; or

in any other case, the average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months of the preceding year over the insured deposit base as at 31st December of the preceding year.

A DI Scheme member which is incorporated in Singapore shall be classified in the same category as a foreign bank with an asset maintenance ratio of more than 5.

In this regulation, “average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months” means the sum of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5(1), as at the end of each of the 3 months in question, divided by 3.

For the purposes of determining the premium rates applicable to DI Scheme members for any premium year, all DI Scheme members shall be classified into the categories specified in the first column of the Third Schedule.

The premium rate applicable to each category of DI Scheme members is specified in the second column of the Third Schedule.

For the purposes of determining the category in which a foreign bank shall be classified, the Authority shall compute the asset maintenance ratio of the foreign bank.

For the purposes of computing the asset maintenance ratio under paragraph (3), the Authority shall apply —

in the case where —

the foreign bank becomes a DI Scheme member during the course of a premium year; or

an exemption from the requirement to be a DI Scheme member granted to the foreign bank pursuant to section 6 of the Act is withdrawn during the course of a premium year,the average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months before it becomes a DI Scheme member over the insured deposit base as at the date it becomes a DI Scheme member;

in the case of the first premium year, the average of the numerator of the formula for computing the asset maintenance ratio set out in regulation 5 as at 31st March 2011, 30th April 2011 and 31st May 2011 over the insured deposit base as at 31st May 2011; (ba)in the case of the premium year beginning on 1 April 2024 and ending on 31 March 2025, the average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months of 2023, over the aggregate of the amounts as mentioned in regulation 5(1)(c)(i)(A) to (D) of every insured depositor of the foreign bank, as at 31 December 2023; or

in any other case, the average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months of the preceding year over the insured deposit base as at 31st December of the preceding year.

A DI Scheme member which is incorporated in Singapore shall be classified in the same category as a foreign bank with an asset maintenance ratio of more than 5.

In this regulation, “average of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5 for the last 3 months” means the sum of the numerators of the formula for computing the asset maintenance ratio set out in regulation 5(1), as at the end of each of the 3 months in question, divided by 3.

Subject to regulation 8(1), the Authority must calculate the amount of premium contribution payable by a DI Scheme member for any premium year as —

for the premium year beginning on 1 April 2024 and ending on 31 March 2025, the product of the premium rate applicable to the DI Scheme member and the aggregate of the amounts as mentioned in regulation 5(1)(c)(i)(A) to (D) of every insured depositor of the DI Scheme member, as at 31 December 2023; and

for any other premium year, the product of the premium rate applicable to the DI Scheme member and the insured deposit base of the DI Scheme member as at 31 December of the preceding year.

Subject to regulation 8(2), where —

a full bank or finance company becomes a DI Scheme member during the course of a premium year; or

an exemption from the requirement to be a DI Scheme member granted to a full bank or finance company pursuant to section 6 of the Act is withdrawn during the course of a premium year,the Authority shall impose on that full bank or finance company, as the case may be, a premium contribution which is pro-rated according to the number of months, or any part thereof, remaining for that premium year.

For the purposes of calculating the premium contribution of a full bank or finance company referred to in paragraph (2), the Authority shall apply the insured deposit base of the full bank or finance company, as the case may be, as at the date on which the full bank or finance company becomes a DI Scheme member.

Subject to regulation 8(3), where a DI Scheme member is a Scheme member under the repealed Act immediately before 1st May 2011, the Authority shall impose on that DI Scheme member a premium contribution for the first premium year which is pro-rated according to the number of months, or any part thereof, comprised in that first premium year.

For the purposes of calculating the premium contribution of a DI Scheme member referred to in paragraph (4), the Authority shall apply the insured deposit base of the DI Scheme member as at 31st May 2011.

Subject to regulation 8(1), the Authority must calculate the amount of premium contribution payable by a DI Scheme member for any premium year as —

for the premium year beginning on 1 April 2024 and ending on 31 March 2025, the product of the premium rate applicable to the DI Scheme member and the aggregate of the amounts as mentioned in regulation 5(1)(c)(i)(A) to (D) of every insured depositor of the DI Scheme member, as at 31 December 2023; and

for any other premium year, the product of the premium rate applicable to the DI Scheme member and the insured deposit base of the DI Scheme member as at 31 December of the preceding year.

Subject to regulation 8(2), where —

a full bank or finance company becomes a DI Scheme member during the course of a premium year; or

an exemption from the requirement to be a DI Scheme member granted to a full bank or finance company pursuant to section 6 of the Act is withdrawn during the course of a premium year,the Authority shall impose on that full bank or finance company, as the case may be, a premium contribution which is pro-rated according to the number of months, or any part thereof, remaining for that premium year.

For the purposes of calculating the premium contribution of a full bank or finance company referred to in paragraph (2), the Authority shall apply the insured deposit base of the full bank or finance company, as the case may be, as at the date on which the full bank or finance company becomes a DI Scheme member.

Subject to regulation 8(3), where a DI Scheme member is a Scheme member under the repealed Act immediately before 1st May 2011, the Authority shall impose on that DI Scheme member a premium contribution for the first premium year which is pro-rated according to the number of months, or any part thereof, comprised in that first premium year.

For the purposes of calculating the premium contribution of a DI Scheme member referred to in paragraph (4), the Authority shall apply the insured deposit base of the DI Scheme member as at 31st May 2011.