Singapore legislation

Regulation 20

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

Regulation 20

Rights and liabilities connected with designated system in relation to reverse transfer or onward transfer

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 a transferee; and

(b)

a failure to transfer the right or liability when transferring a part of the business of a transferor that was transferred to a transferee under a certificate of transfer (whether the transfer is a reverse transfer under section 70 of the Act or an onward transfer under section 72 of the Act) is likely to result in a disruption of the operation of the designated system.

Subregulation 2

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 —

(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 transferee in accordance with the designated system rules.

Subregulation 3

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 —

(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 transferee in accordance with the designated system rules.

Subregulation 4

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.

Read in full context — Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024 →