Singapore legislation
Regulation 11
of Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011
Regulation 11
Operational preparedness for payment of compensation
Subregulation 1
Every DI Scheme member shall at all times have the capability to furnish to the Agency, in a secure manner, within such period and in such form and manner as may be specified by the Agency in the Rules, information which is requested for by the Agency for the purpose of making payment of compensation to insured depositors.
Subregulation 2
Every DI Scheme member shall —
participate in any periodic exercise conducted by the Agency for the purpose of assessing whether the DI Scheme member is sufficiently prepared in the event that the Authority determines that compensation is to be paid out of the DI Fund to the insured depositors of the DI Scheme member; and
achieve the level of preparedness required by the Agency of all DI Scheme members as may be specified in the Rules.
Subregulation 3
Any —
DI Scheme member which merges or consolidates with another DI scheme member; or
DI Scheme member (referred to in this regulation as the acquiring DI Scheme member) which acquires the deposit-taking business of another DI Scheme member to form part of the business of the acquiring DI Scheme member,shall furnish to the Agency the information referred to in paragraph (1) in a secure manner, within such period and in such form and manner as may be specified by the Agency in the Rules.
Subregulation 4
Upon receipt of a confirmation from the Agency that the information furnished under paragraph (3) is in order, the acquiring DI Scheme member or the merged or consolidated DI Scheme member, as the case may be, shall prepare and maintain records of every insured depositor of each of the original DI Scheme members referred to in paragraph (3) who, immediately prior to the merger, consolidation or acquisition, as the case may be, had insured deposits placed with both the original DI Scheme members and the aggregate of such insured deposits exceeds the Maximum DI Coverage.
Subregulation 5
For the purposes of paragraph (4), the records shall be maintained for a period of one year from the date of the merger, consolidation or acquisition, as the case may be, or such other period as may be approved by the Minister pursuant to section 26(2) of the Act.
Subregulation 6
The acquiring DI Scheme member or the merged or consolidated DI Scheme member, as the case may be, shall engage an external auditor to verify that the records referred to in paragraph (4) have been prepared and that the DI Scheme member has put in place proper procedures to ensure that the records are maintained in a secure manner.
Subregulation 7
The acquiring DI Scheme member or the merged or consolidated DI Scheme member, as the case may be, shall submit the verification referred to in paragraph (6) to the Agency within such period as may be specified in the Rules.
Subregulation 8
Any DI Scheme member which contravenes paragraph (1), (2), (3), (4), (6) or (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 and, in the case of a continuing offence, to a further fine of $12,500 for every day or part thereof during which the offence continues after conviction.
Subregulation 9
In this regulation, “in a secure manner”, in relation to any information, means that when dealing with the information, the DI Scheme member shall comply with such requirements as may be specified in the Rules.