Singapore legislation

Regulation 13

of Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024

Regulation 13

Rights and liabilities connected with designated system

Subregulation 1

This regulation applies where —

(a)

a right or liability arising from a transfer order effected through a designated system has yet to be settled by the transferor; and

(b)

a failure to transfer the right or liability when transferring a part of the transferor’s business is likely to result in a disruption of the operation of the designated system.

Subregulation 2

A transfer of a part (but not the whole) of the business of the transferor under section 66 of the Act —

(a)

must not take effect until after the right or liability is settled; or

(b)

must include the transfer of —

(i)

the right or liability; and

(ii)

any security posted by the transferor in accordance with the designated system rules.

Subregulation 3

Without limiting the circumstances that constitute a disruption of the operation of a designated system, either of the following is considered a disruption of the operation of the designated system in paragraph (1):

(a)

a disruption of the netting or settlement (in accordance with the designated system rules) of a transfer order that is effected through the designated system;

(b)

a disruption of any process to be observed under the designated system rules, upon a default of a participant of the designated system.