Singapore legislation
Regulation 18
of Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024
Regulation 18
Setting-off and netting rights in relation to reverse transfer and onward transfer
Subregulation 1
A reverse transfer under section 70 of the Act of a part (but not the whole) of the business of a transferor that was transferred to a transferee under a certificate of transfer must not provide for the transfer of some, and not all, of the protected rights and liabilities between the transferor and the transferee.
Subregulation 2
An onward transfer under section 72 of the Act of a part (but not the whole) of the business of a transferor that was transferred to a transferee under a certificate of transfer must not provide for the transfer of some, and not all, of the protected rights and liabilities between the transferee and the 2nd transferee.
Subregulation 3
In this regulation —
rights and liabilities between the transferor and the transferee mentioned in paragraph (1) are protected if —
they are rights and liabilities that arise from one or more financial contracts between them; and
they are rights and liabilities which either the transferor or the transferee is entitled to set‑off or net under a set‑off arrangement, netting arrangement or title transfer arrangement; and
rights and liabilities between the transferee and the 2nd transferee mentioned in paragraph (2) are protected if —
they are rights and liabilities that arise from one or more financial contracts between them; and
they are rights and liabilities which either the transferee or the 2nd transferee is entitled to set‑off or net under a set‑off arrangement, netting arrangement or title transfer arrangement.
Subregulation 4
For the purposes of paragraph (3)(a), it is immaterial whether —
the set‑off arrangement or netting arrangement also permits the transferor or the transferee to set‑off or net rights and liabilities with another person; or
the right to set‑off or net is exercisable only on the occurrence of a particular event.
Subregulation 5
For the purposes of paragraph (3)(b), it is immaterial whether —
the set‑off arrangement or netting arrangement also permits the transferee or the 2nd transferee to set-off or net rights and liabilities with another person; or
the right to set‑off or net is exercisable only on the occurrence of a particular event.