Singapore legislation
Regulation 14
of Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011
Regulation 14
Disclosure by DI Scheme member upon cessation
Subregulation 1
Subject to paragraph (2), every DI Scheme member shall, if any of the following events occurs, disclose in writing the occurrence of the event to every of its insured depositors, as soon as practicable:
that it will cease to be a DI Scheme member;
if any of its products which the DI Scheme member is, or has been, offering will cease to be an insured deposit under the Act; or
if any of its products which the DI Scheme member has classified as an insured deposit, will be reclassified as not being an insured deposit.
Subregulation 2
A DI Scheme member may disclose the occurrence of any of the events specified in paragraph (1) after the event if it is not possible to do so prior to the occurrence of the event.
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 disclose the following to every insured depositor which has insured deposits with each of the original DI Scheme members:
the insured depositor shall, for a period of one year after the date of the merger, consolidation or acquisition, as the case may be, be entitled to compensation in accordance with the Act as if the merger, consolidation or acquisition, as the case may be, did not take place; and
the insured depositor shall be entitled to compensation in respect of his insured deposits with each of the original DI Scheme members, of an amount not exceeding the Maximum DI Coverage or the amount of insured deposits placed with the relevant DI Scheme member, whichever is the lower.
Subregulation 4
A DI Scheme member shall submit a copy of the disclosure required under paragraphs (1) and (3) to the Agency within such period as may be specified in the Rules.
Subregulation 5
Any DI Scheme member which contravenes paragraph (1) or (3) 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.