Singapore legislation
Regulation 15
of Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011
Regulation 15
Prescribed insured deposit
For the purposes of the First Schedule to the Act, a sum of money paid by a person (the first-mentioned person) to a DI Scheme member or any other person as an agent of the first-mentioned person is prescribed as an insured deposit made by the first-mentioned person with the DI Scheme member, if it is paid for the purpose of making funds of the first-mentioned person available to the DI Scheme member under the following arrangement:
the payment is made to enable the DI Scheme member or the agent to purchase an asset on behalf of the first-mentioned person, being an asset that exists at the time of the purchase;
the DI Scheme member purchases the asset from the first-mentioned person at a price (the marked-up price) that is greater than the sum of money paid by the first-mentioned person, and sells the asset;
the first-mentioned person and the DI Scheme member, respectively, do not derive any gain or suffer any loss from any movement in the market value of the asset other than the difference between the marked-up price and the sum of money paid by the first-mentioned person (which represents the return to the first-mentioned person for making funds available to the DI Scheme member); and
no part of the marked-up price is required to be paid by the DI Scheme member to the first-mentioned person until after the date of sale of the asset by the DI Scheme member.