Compulsory transfer of business
49FF.—(1)  Subject to subsections (2), (3) and (7), the Authority may make a determination that the whole or any part of the business of a transferor (including its non-insurance business) shall be transferred to a transferee which is licensed to carry on the relevant class or classes of insurance business to be transferred in Singapore if —
(a)any ground exists under section 41(1) for the Authority to exercise any power under section 41(2) in relation to the transferor, whether or not the Authority has exercised the power;
(b)the board of directors of the transferee has consented to the transfer;
(c)the Authority is satisfied that the transfer is appropriate, having regard to —
(i)the interests of the policy owners of the transferor given priority and the order of priority of each class of policy owners under section 49FR;
(ii)the interests of the policy owners of the transferee given priority and the order of priority of each class of policy owners under section 49FR;
(iii)the stability of the financial system in Singapore;
(iv)whether the PPF Agency has to make a payout from any of the PPF Funds to the transferee and the amount of such payout, if any; and
(v)any other matter that the Authority considers relevant; and
(d)the transfer involves the whole or part of the insurance business of the transferor.
[16/2011 wef 01/05/2011]
[Act 11 of 2013 wef 18/04/2013]
(2)  Any determination made by the Authority for the purpose of subsection (1) may include a determination as to whether guaranteed policy moneys in relation to any policy should be adjusted after the proposed transfer.
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(3)  Where the transferor is a licensed insurer incorporated or established outside Singapore, any determination shall only be in respect of the transferor’s business (or any part thereof) which is reflected in the books of the transferor in Singapore in relation to the transferor’s operations in Singapore and the reference to policy owners in subsection (1)(c)(i) shall be construed accordingly.
[16/2011 wef 01/05/2011]
[Act 11 of 2013 wef 18/04/2013]
(4)  The Authority may, before making a determination, appoint one or more persons to perform an independent assessment of the proposed transfer of the business (or any part thereof) of the transferor for the purpose of providing a report on the transfer to the Authority, including an assessment —
(a)as to the compensation, if any, that should be paid by the transferee; and
(b)as to whether guaranteed policy moneys in relation to any policy should be adjusted after the proposed transfer.
[16/2011 wef 01/05/2011]
(5)  The remuneration and expenses of a person appointed under subsection (4) shall be borne by the transferor.
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(6)  The Authority shall serve a copy of any report furnished under subsection (4) on the transferor and the transferee.
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(7)  A determination may provide for the transfer of the business (or any part thereof) of the transferor to a transferee who is not licensed to carry on the relevant class or classes of insurance business in Singapore on terms that the transfer is to take effect only in the event of the transferee becoming so licensed.
[16/2011 wef 01/05/2011]
[Act 11 of 2013 wef 18/04/2013]
(8)  Upon making a determination, the Authority shall submit the determination to the Minister for his approval.
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(9)  Before approving the determination, the Minister shall, unless he decides that it is not practicable or desirable to do so —
(a)publish in the Gazette and in such newspaper or newspapers as the Minister may determine a notice of his intention to approve the determination, specifying such particulars as the Minister considers appropriate; and
(b)cause to be given to the transferor notice in writing of his intention to approve the determination, specifying such particulars as the Minister considers appropriate and the date by which the transferor may make written representations to the Minister.
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(10)  In determining the period within which written representations have to be made under subsection (9), the Minister shall take into account the need for the transfer to be effected expeditiously in the interest of the stability of the financial system in Singapore.
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(11)  Upon receipt of any written representation, the Minister shall consider the representation for the purpose of deciding whether to approve the determination.
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(12)  Where the transferor is a licensed insurer established or incorporated in Singapore, the Minister shall not approve the determination unless he is satisfied that it is in the public interest to do so.
[16/2011 wef 01/05/2011]
[Act 11 of 2013 wef 18/04/2013]
(13)  The Minister may —
(a)approve the determination without modification;
(b)approve the determination subject to any modification he considers appropriate if the transferee, or where the transferee is a corporation, its board of directors of the transferee has agreed to the modification; or
(c)refuse to approve the determination.
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(14)  An approval under subsection (13) shall be subject to such conditions as the Minister may determine and the Minister may add to, vary or revoke any such conditions.
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(15)  The transferor or transferee, as the case may be, shall comply with the conditions referred to in subsection (14).
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(16)  A determination, the approval of a determination under this section or the issue of a certificate shall not preclude the exercise of any other power by the Authority or the Minister under this Act.
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