SCHEDULE II (SDIC RULES RESTATED ON 8 FEBRUARY 2013) SDIC RULES

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1 SCHEDULE II (SDIC RULES RESTATED ON 8 FEBRUARY 2013) SDIC RULES 1. The SDIC Rules are issued under section 63 of the Deposit Insurance and Policy Owners Protection Schemes Act Cap 77B ( the Act ). Rules are prefixed by D shall apply to all DI Scheme members and Rules are prefixed by P shall apply to all PPF Scheme members. 2. The Monetary Authority of Singapore ( the Authority ) has issued the Deposit Insurance and Policy Owners Protection Schemes (Deposit Insurance) Regulations 2011 ( the DI Regulations ) include:- (a) (b) (c) (d) regulation 11 on the compensation payout operational preparedness of DI Scheme members; regulation 12 on the register of insured deposits to be maintained by DI Scheme members; regulation 13 on the disclosure statement for insured deposits; and regulation 14 on the disclosure by DI Scheme member upon cessation. 2A. The Monetary Authority of Singapore ( the Authority ) has issued the Deposit Insurance and Policy Owners Protection Schemes (Policy Owners Protection Scheme) Regulations 2011 ( the PPF Regulations ) include:- (a) (b) Definitions regulation 10 on the register of insured policies to be maintained by PPF Scheme members; and regulation 11 on the disclosure requirements for insured policies. 3. Words and expressions used in these Rules shall, unless otherwise defined herein or unless the context otherwise requires, have the same meaning as in the Act. PREMIUM CONTRIBUTION Premium Contributions Payable by DI Scheme Members D1. For the purposes of section 14(2) of the Act, SDIC shall give each DI Scheme member notice in writing of the amount of premium contribution payable for any particular premium year at least 1 month before the date on payment is due from the DI Scheme member ( payment due date ). D2. Where a full bank or finance company becomes a DI Scheme member during the course of a premium year, or where an exemption from the requirement to be a DI Scheme member granted to a full bank or finance company pursuant to section 6 of the Act is withdrawn during the course of a premium year, the DI Scheme member shall pay the pro-rated amount of premium contribution assessed for that premium year within 1 month from the date it becomes a DI Scheme member or from the date its exemption is withdrawn, as the case may be, unless SDIC specifies a later payment due date in its notice in writing. 1

2 Re-computation of Premium Contributions and Additional Premium Contributions D3. If the Authority notifies SDIC, under section 19 of the Act, of any re-computation of the amount of premium contribution or any additional premium contribution, as the case may be, and the shortfall in premium contribution, by a DI Scheme member, SDIC shall give the DI Scheme member notice in writing of the shortfall in premium contribution at least 1 month before the payment due date specified in the notice. Collection of Additional Premium Contributions D4. When the Authority has notified SDIC of the additional premium contribution payable by a DI Scheme member for that premium year or part thereof under section 15 of the Act, SDIC shall give the DI Scheme member notice in writing of the additional premium contribution payable at least 1 month before the payment due date specified in the notice. Late Payment Fees D5. As provided under section 16 of the Act, if a DI Scheme member fails to pay the premium contribution or additional premium contribution or any part thereof by the date specified under these Rules, SDIC may impose late payment fees by notice in writing pursuant to that section. D6. Any late payment fee imposed by SDIC shall, subject to section 16(3) of the Act, be the amount computed in accordance with the following formula: A x r/365 x (SIBOR + 10%), where A is the amount of premium contribution or additional premium contribution as the case maybe, is due and owing; r is the number of days after the payment due date by the Scheme member is late in making payment; SIBOR means the 3 months S$ Singapore Interbank Offer Rate fixed by the Association of Banks in Singapore, as at the payment due date. Payment Due Date D7. Any payment that is due on a Saturday, Sunday or a public holiday, shall be made by the next business day. Method of payment of premium contributions and late payment fees D8. Subject to Rule D9, a DI Scheme member shall pay the premium contribution, any additional premium contribution, any shortfall in premium contribution, and any late payment fee through a direct debit of the DI Scheme member s current account with the Authority. In this regard, the DI Scheme member shall do all things necessary to authorise the Authority to debit its accounts on behalf of the SDIC. The Authority shall credit any premium contribution collected into SDIC s account maintained with the Authority for the Deposit Insurance Fund ( the DI Fund ). 2

3 D9. A DI Scheme member does not maintain a current account with the Authority may make alternative arrangements with SDIC to pay the annual premium contribution, any additional premium contribution, any shortfall in premium contribution, and any late payment fee. Refund D10. For the purposes of section 18 of the Act, SDIC shall notify the DI Scheme member concerned, in writing, of the amount of premium contributions to be refunded to the DI Scheme member within 1 month of receipt of the notice under section 18. The SDIC notification shall also include the date of the payment of the refund shall, in any event, be no later than 15 th April of the next premium year. PAYMENT OF COMPENSATION TO INSURED DEPOSITORS D11. When the Authority has notified SDIC of its determination that compensation shall be paid out of the DI Fund, SDIC shall as soon as practicable give notice that such compensation shall be paid out of the DI Fund to the insured depositors of the failed DI Scheme member. As required under section 21(4) of the Act, SDIC shall gazette the notice of payment of compensation, stating that a payment of compensation is to be made to the insured depositors of the failed DI Scheme member out of the DI Fund. In addition SDIC shall issue a media release of payment of compensation to news stations and daily press. Such media release shall be issued to at least 4 local daily newspapers, one each in the Malay, Chinese, Tamil and English languages. D12. A DI Scheme member in respect of a notice that compensation will be paid has been published in the Gazette ( a failed DI Scheme member ) shall immediately exhibit at all its offices and branches in Singapore, a notice of the decision by the Authority to pay compensation out of the DI Fund to insured depositors of the DI Scheme member. D13. A failed DI Scheme member shall provide such information and render such assistance and cooperation to SDIC as may be required by SDIC to determine the eligibility and entitlement of the insured depositors to compensation, compute the compensation payments and otherwise perform its functions under the Act. COMPENSATION PAYOUT PREPAREDNESS D14 For the purposes of regulation 11(1) of the DI Regulations:- (a) a DI Scheme member shall furnish the information specified in Annex D-A ( Specified Information ); (b) the information shall be furnished in the structure and format, and within such time as specified in Annex D-B; and (c) a DI Scheme member shall comply with the data handling process and standards specified in Annex D-C to ensure that the required data is submitted by the DI Scheme member to SDIC in a secure manner. 3

4 D15 For the purposes of Rule D14, a DI Scheme member shall be classified into either Category A or B. A DI Scheme member that satisfies the criteria specified in paragraph 2 of Annex D-B and wishes to be classified under Category B, shall be so classified when it certifies to SDIC that it fulfils the said criteria. Thereafter, such Category B Scheme member shall certify to SDIC on 1 st April of each year that it fulfils the criteria specified in paragraph 2 of Annex D-B. Furthermore, such Category B Scheme member shall inform SDIC within 10 days from the date it no longer satisfies the criteria and within 30 days from that date, ensure that its systems and processes are compliant with those specified for Category A Scheme members in Annex D-B. D16. For the purposes of compensation payout operational preparedness, SDIC shall provide DI Scheme members 30 days prior notice of any periodic simulation exercise. For the purposes of regulation 11(2) of the DI Regulations, every DI Scheme member shall be considered to have achieved the level of preparedness required for each periodic exercise only if it complies with the requirements specified in Annexes D-A, D-B and D-C. D17. For the purposes of regulation 11(3) of the DI Regulations, each of the Scheme members involved in a merger or consolidation, or acquisition shall furnish to SDIC the information specified in Annex D-A as at the effective date of the merger or consolidation within 10 days. The information shall be furnished in the structure and format specified in Annex D-B and masked as specified in Annex D- C. D18. For the purposes of regulation 11(7) of the DI Regulations, the acquiring DI Scheme member or the merged or consolidated DI Scheme member, as the case may be, shall submit such verification report within 30 days of the effective date of acquisition, merger or consolidation. METHOD OF PAYOUT FOR DI SCHEME MEMBERS D19. SDIC may pay compensation to insured depositors using any of the following methods: (a) Issue cheques to insured depositors for the amount of compensation due to them. SDIC may send cheques by post to insured depositors according to the mailing addresses recorded in the books of the failed Scheme member or may arrange for collection by the insured depositors from the branches of one or more other DI Scheme members appointed by the SDIC under section 62(4) of the Act as its agent for the purposes of payment of compensation; (b) Deposit the amount of compensation due to insured depositors into new accounts opened for the insured depositors with one or more other DI Scheme members appointed by the SDIC under section 62(4) of the Act as its agent for the purposes of payment of compensation; or (c) Deposit the amount of compensation due to insured depositors into accounts specified to SDIC by insured depositors via secured on-line instruction through the SDIC website. The accounts specified to SDIC must be held by the insured depositors, either in their own right or jointly with other persons, 4

5 with a DI Scheme member appointed by the SDIC under section 62 (4) of the Act as its agent for the purposes of payment of compensation. DISCLOSURE BY DI SCHEME MEMBERS Register of Insured Deposits D20. For the purposes of regulation 12(1) of the DI Regulations, the register of insured deposits is to be maintained in a form according to the sample register provided in Annex D-D. For the purposes of regulation 12(2) of the DI Regulations, the annex setting out the product codes of each product is an insured deposit is to be submitted in a form according to the sample provided in Annex D-E. For the purposes of verifying the accuracy and completeness of the register, SDIC may request a DI Scheme member to provide additional information, including lists of deposit products, product descriptions and marketing materials. Disclosure Statement for Insured Deposits D21. From 7th January 2013, for the purposes of regulation 13(1) of the DI Regulations, the disclosure statement shall be in a form as specified in Annex D-F. SDIC may require a DI Scheme member to submit samples of marketing materials, account opening forms and deposit account statements to verify that the disclosure statement in the relevant form has been included in such materials, forms and statements. Disclosure by DI Scheme member upon cessation D22. A DI Scheme member shall submit to SDIC, a copy of the disclosure in writing issued to its insured depositors pursuant to regulation 14(4) of the DI Regulations, within 10 days of such disclosure. LEVIES FOR PPF SCHEME Levy Payable by PPF Scheme Members P1. For the purposes of section 39(2) of the Act, SDIC shall give each PPF Scheme member notice in writing of the amount of levy payable for any particular premium year at least 1 month before the date on payment is due from the PPF Scheme member ( payment due date ). P2. Where a relevant insurer becomes a PPF Scheme member during the course of a premium year, or where an exemption from the requirement to be a PPF Scheme member granted to a relevant insurer pursuant to section 32 of the Act is withdrawn during the course of a premium year, the PPF Scheme member shall pay the pro-rated amount of levy assessed for that premium year within 1 month from the date it becomes a PPF Scheme member or from the date its exemption is withdrawn, as the case may be, unless SDIC specifies a later payment due date in its notice in writing. 5

6 Re-computation of Levies and Additional Levies P3. If the Authority notifies SDIC, under section 44 of the Act, of any re-computation of the amount of levy or any additional levy, as the case may be, and the shortfall in levy, by a PPF Scheme member, SDIC shall give the PPF Scheme member notice in writing of the shortfall in levy at least 1 month before the payment due date specified in the notice. Collection of Additional Levies P4. When the Authority has notified SDIC of the additional levy payable by a PPF Scheme member for that premium year or part thereof under section 40 of the Act, SDIC shall give the PPF Scheme member notice in writing of the additional levy payable at least 1 month before the payment due date specified in the notice. Late Payment Fees P5. As provided under section 41 of the Act, if a PPF Scheme member fails to pay the levy or additional levy or any part thereof by the date specified under these Rules, SDIC may impose late payment fee by notice in writing pursuant to that section. P6. Any late payment fee imposed by SDIC shall, subject to section 41(3) of the Act, be the amount computed in accordance with the following formula: A x r/365 x (SIBOR + 10%), where A is the amount of levy or additional levy as the case maybe, is due and owing; r is the number of days after the payment due date by the PPF Scheme member is late in making payment; SIBOR means the 3 months S$ Singapore Interbank Offer Rate fixed by the Association of Banks in Singapore, as at the payment due date. Payment Due Date P7. Any payment that is due on a Saturday, Sunday or public holiday, shall be made by the next business day. Method of Payment of Levy and Late Payment Fees P8. A PPF Scheme member shall make arrangements to pay the levy, any additional levy, any shortfall in levy, and any late payment fee through a direct debit of its settlement bank s current account with the Authority. In this regard, the PPF Scheme member shall do all things necessary to enable the settlement bank concerned to authorise the Authority to debit the settlement bank s current account with the Authority on behalf of the SDIC. The Authority shall credit the amount collected into SDIC s current account maintained with the Authority for the Policy Owners Protection Life Fund ( the PPF Life Fund ) or for the Policy Owners Protection General Fund ( the PPF General Fund ), as the case may be. Refund P9. For the purposes of section 43 of the Act, SDIC shall notify the PPF Scheme member concerned, in writing, of the amount of levy to be refunded to the PPF 6

7 Scheme member within 1 month of receipt of the notice under section 43. The SDIC notification shall also include the date of the payment of the refund shall, in any event, be no later than 15 July of the next premium year. PAYMENT OF COMPENSATION OR USE OF PPF LIFE FUND OR PPF GENERAL FUND P10. When the Authority has notified SDIC of its determination that a payment of compensation shall be made out of the PPF Life Fund or the PPF General Fund, or that the PPF Life Fund or the PPF General Fund shall be utilised to fund the transfer or run-off the business of the failed PPF Scheme member, SDIC shall, as required under section 46(4) of the Act, gazette a notice, stating that a payment of compensation shall be made out of the PPF Life Fund or the PPF General Fund, or that the PPF Life Fund or the PPF General Fund shall be utilised to fund the transfer or run-off the business of the failed PPF Scheme member, as the case may be. In addition, SDIC shall issue a media release to news stations and daily press that payment of compensation will be made or that the business of the failed PPF Scheme member will be transferred or run-off, as the case may be. Such media release shall be issued to at least 4 local daily newspapers, one each in the Malay, Chinese, Tamil and English languages. P11. A PPF Scheme member in respect of a notice has been published in the Gazette that compensation will be paid or that its business will be transferred or run-off shall immediately exhibit at all its offices and branches in Singapore and publish on its website (if any), a notice of the decision by the Authority to pay compensation out of the PPF Life Fund or the PPF General Fund, or that the PPF Life Fund or the PPF General Fund shall be utilised to fund the transfer or run-off the business of the failed PPF Scheme member, as the case may be. P12. A failed PPF Scheme member shall provide such information and render such assistance and cooperation to SDIC as may be required by SDIC to make compensation out of the PPF Life Fund or the PPF General Fund, or to use the PPF Life Fund or the PPF General Fund to fund the transfer or run-off the business of the failed PPF Scheme member. In this regard, a failed PPF Scheme member shall provide such information and render such assistance and cooperation to SDIC as may be required by SDIC to determine the eligibility and entitlement of policy owners and other rightful persons under the insured policies of the failed PPF Scheme member, compute the compensation payments and otherwise perform its functions under the Act. METHOD OF PAYOUT BY SDIC P13. SDIC may pay compensation to policy owners or other rightful persons under the insured policies of the failed PPF Scheme member by sending cheques by post for the amount of compensation due to them. Regulation 8 of the PPF Regulations sets out other methods by SDIC may pay compensation. DISCLOSURE BY PPF SCHEME MEMBERS Register of Insured Policies P14. For the purposes of regulation 10 of the PPF Regulations, the register of insured policies is to be maintained in accordance with the sample register provided in Annex P-A. For the purposes of verifying the accuracy and completeness of the 7

8 register, SDIC may request a PPF Scheme member to provide additional information, including product descriptions and marketing materials. Disclosure Requirements for Insured Policies P15. For the purposes of regulation 11 of the PPF Regulations, SDIC may require a PPF Scheme member to submit samples of marketing materials and policy documents in order to verify that disclosure statements have been made and are accurate. ANNEX P-A: REGISTER OF INSURED POLICIES Name of Life Insurance Product under each Category Category 1 Category 2 Category 3 Category 4 Name of General Insurance Product under each description complies with the requirements of the Motor Vehicles (Third-Party Risks and Compensation) Act (Cap. 189) complies with the requirements of the Work Injury Compensation Act (Cap. 354) provides personal motor cover provides personal travel cover provides personal accident/health cover provides personal property (structure and contents) cover provides cover in connection with the employment of a foreign domestic worker Annexes D-A, D-B, D-C, D-D, D-E and D-F 4. Annexes D-A, D-B, D-C, D-D, D-E and D-F are to be found at the Singapore Deposit Insurance Corporation s website at 8