PART 3 RETURNS, INSPECTIONS AND INVESTIGATIONS, WINDING UP AND TRANSFERS OF BUSINESS |
[11/2013] | Annual account and audit, etc. |
| 94.—(1) A registered insurance broker must prepare such statements of account and other statements and in such form and manner as may be prescribed and lodge them with the Authority. [23/2003; 11/2013] (2) A licensed insurer or registered insurance broker must —| (a) | cause to be kept in Singapore such books and records as will sufficiently explain the transactions and financial position of the insurer or insurance broker (as the case may be) in Singapore and enable the insurer or insurance broker to comply with the requirements of this section and, in the case of the insurer, section 95; and | | (b) | cause those books and records to be kept in such manner as to enable them to be conveniently and properly audited. [11/2013] |
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| (3) A licensed insurer or an authorised reinsurer must prepare and lodge with the Authority such statements of accounts and other statements relating to its business and in such form and manner as may be prescribed or specified in directions by the Authority. [11/2013] |
(4) For the purposes of subsection (3) —| (a) | a licensed insurer must have such statements of accounts or part thereof audited by an auditor who satisfies subsection (7), in such form and manner as the Authority may prescribe or specify in directions; and | | (b) | despite the provisions of the Companies Act 1967 or the Co‑operative Societies Act 1979 (as the case may be) every licensed insurer, other than a captive insurer and a marine mutual insurer, must appoint an auditor annually. [11/2013] |
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| (5) A registered insurance broker must have its accounts audited for each financial year for which statements of accounts and other statements are prepared in accordance with regulations prescribed under subsection (1). |
| (6) A registered insurance broker must appoint an auditor to carry out an audit of its accounts and other statements prepared in accordance with subsection (1) and where, for any reason, the auditor ceases to act for the registered insurance broker, the registered insurance broker must, as soon as practicable thereafter, appoint another auditor. |
(7) A person must not act as auditor for any licensed insurer or registered insurance broker unless —| (a) | the person has a place of business in Singapore; | | (b) | the person is approved under section 10 of the Companies Act 1967 as a company auditor for the purposes of that Act; and | | (c) | in the case of a licensed insurer, the licensed insurer has obtained the approval of the Authority to appoint that person as an auditor. [11/2013] |
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| (8) An auditor must not be approved by the Authority as an auditor for a licensed insurer unless the auditor is able to comply with such conditions in relation to the discharge of the auditor’s duties as may be determined by the Authority. [11/2013] |
(9) Despite any other provision of this Act or the provisions of the Companies Act 1967, the Authority may, if it is not satisfied with the performance of duties by an auditor appointed by a licensed insurer or registered insurance broker —| (a) | at any time direct the licensed insurer or registered insurance broker to remove the auditor; and | | (b) | direct the licensed insurer or registered insurance broker, as soon as practicable thereafter, to appoint another auditor, |
| and the licensed insurer or registered insurance broker, must comply with such direction. |
[11/2013] |
(10) The Authority may impose all or any of the following duties on an auditor:| (a) | a duty to submit such additional information in relation to the audit as the Authority considers necessary; | | (b) | a duty to enlarge or extend the scope of the audit of the business and affairs of the licensed insurer or registered insurance broker, as the case may be; | | (c) | a duty to carry out any other examination or establish any procedure in any particular case; | | (d) | a duty to submit a report on any of the matters referred to in paragraphs (b) and (c), |
| and the licensed insurer or registered insurance broker (as the case may be) must remunerate the auditor in respect of the discharge by the auditor of all or any of these duties. |
[11/2013] |
| (11) An auditor’s report made under subsection (10) must be lodged by the insurer with the Authority together with the statements of accounts lodged under subsection (3). [23/2003; 11/2013] |
(12) If an auditor, in the course of the performance of the auditor’s duties as an auditor of a licensed insurer or registered insurance broker, is satisfied that —| (a) | there has been a serious contravention of any provision of this Act or that an offence involving fraud or dishonesty has been committed; | | (b) | serious irregularities have occurred, including irregularities that jeopardise the interests of policy owners; | | (c) | in the case of a licensed insurer —| (i) | where the insurer is incorporated or established in Singapore, the insurer is unable to meet its obligations; or | | (ii) | any transaction or dispute has taken place which will have a material effect on the solvency of any insurance fund established by the insurer under this Act; or |
| | (d) | in the case of a registered insurance broker, the insurance broker is unable to meet its obligations, |
| the auditor must immediately report the matter in writing to the Authority. |
[11/2013] |
| (13) In the case of a company incorporated or established outside Singapore, the audit required by subsection (4) need not extend beyond the business for which an insurance fund is maintained under this Act. [11/2013] |
| (14) The Authority may, from time to time and in such form or manner as it considers appropriate, publish any information obtained or received by the Authority under this section or section 95. [36 [11/2013] |
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| Actuarial investigations and reports as to insurance business |
95.—(1) A licensed insurer must, for each accounting period —| (a) | have an investigation made, by an actuary appointed with the approval of the Authority under section 35, into the financial condition of each class of business that it carries on; and | | (b) | lodge with the Authority such reports of the investigation referred to in paragraph (a), in such form and manner as may be prescribed or specified in directions by the Authority. [11/2013] |
| (2) In the case of a company incorporated or established outside Singapore, the investigation required by subsection (1) need not extend beyond the business for which an insurance fund is maintained under this Act. |
| (3) If the company referred to in subsection (2) is required by the law relating to insurance in the country in which it is incorporated or established to provide the authority having the administration of that law with returns as to actuarial investigations of its insurance business, the documents to be lodged with the Authority under this section must be accompanied by certified copies of any such returns made since the company was first licensed under this Act in respect of insurance business, other than returns of which copies have previously been provided under this subsection. [11/2013] |
| (4) References in this Act to documents lodged with the Authority are not to be taken to include documents required by subsection (3) to accompany documents so lodged. |
(5) Where a licensed insurer —| (a) | has an actuarial investigation made into its insurance business for which it maintains an insurance fund under this Act (whether with or without any other insurance business carried on by it); and | | (b) | the investigation is not made to comply with subsection (1) or with any provision as to returns in the law relating to insurance in a country outside Singapore, but the results of the investigation are made public, |
| then the insurer must, as to the lodging of documents with the Authority, comply with the requirements of subsection (1) as in the case of an investigation made under that subsection. |
[37 [11/2013] |
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| Power to require returns under section 94 or 95 to be rectified |
96.—(1) If it appears to the Authority that any document lodged in accordance with section 94 or 95 —| (a) | is, in any particular, unsatisfactory, incomplete, inaccurate or misleading; or | | (b) | does not comply with the requirements of this Act, |
| the Authority may, by written notice, require such explanations as it may consider necessary to be made by or on behalf of the insurer within such time (being at least 14 days) as is specified in the notice. |
| (2) The Authority may, after considering the explanations referred to in subsection (1), or if such explanations have not been given by or on behalf of the insurer within the time specified in that subsection, reject the document or give such directions as it may think necessary for its variation within such time (being at least one month) as is specified in the directions. |
| (3) Directions given under subsection (2) with respect to any document may require such consequential variations of any other document lodged by the insurer under section 94 or 95 as may be specified in the directions. |
| (4) Where directions are given under subsection (2), any document to which they relate is deemed not to have been lodged until it is resubmitted with the variations required by the directions, but the insurer is deemed to have submitted the document within the time limited by regulations prescribed or directions issued under section 94(3) if it is resubmitted with the required variations within the time limited by the directions. [38 [11/2013] |
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| Additional provisions as to returns under section 94 or 95 |
97.—(1) Any member or policy owner of an insurer has a right, on applying to the insurer, to be sent by the insurer at an address supplied by the member or policy owner copies of documents lodged by the insurer to comply with section 94 or 95, and to have the copies despatched not later than 14 days after the insurer receives the application.| (2) The right referred to in subsection (1) does not extend to any document excepted from this provision by regulations prescribed or directions issued under section 94(3), or to a document of any other description except the last lodged of that description. [11/2013] |
| (3) Any person has the right, on payment of the prescribed fee, at any time during working hours of the Authority’s office, to inspect at that office any document lodged by an insurer to comply with section 94 or 95 and any document required by that section to accompany the document so lodged and make a copy of the whole or any part of it. [11/2013] |
| (4) The right referred to in subsection (3) does not extend to any document excepted from this provision by regulations prescribed or directions issued under section 94(3), or to documents of any other description lodged more than 10 years previously. [11/2013] |
| (5) In any proceedings, a certificate signed by any person appointed by the Authority under section 137 that a document is one lodged by an insurer to comply with section 94 or 95, or one that accompanied documents so lodged, is admissible as evidence of the facts certified. |
| (6) Any person who contravenes section 94 or 95 shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [39 [11/2013] |
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| Division 2 — Inspections and Investigations |
[11/2013] 98.—(1) The Authority may, from time to time, inspect under conditions of secrecy, the books, accounts, records and other documents, whether in electronic, print or other form, of —| (a) | a licensed insurer; | | (b) | any branch or subsidiary outside Singapore of a licensed insurer established or incorporated in Singapore; or | | (c) | an insurance intermediary. [11/2013] |
(2) For the purpose of an inspection under this section, a licensed insurer or insurance intermediary referred to in subsection (1) must —| (a) | produce the insurer’s or insurance intermediary’s books, accounts, records and other documents, whether in electronic, print or other form, to the Authority and give such information and facilities as may be required by the Authority to conduct the inspection; and | | (b) | procure that any person who is in possession of such books, accounts, records and other documents referred to in paragraph (a) produces such books, accounts, records and other documents and give such information and facilities as may be required by the Authority. [11/2013] |
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| (3) The Authority may make copies of, or take possession of, any of the books, accounts, records and other documents, whether in electronic, print or other form, of a licensed insurer or an insurance intermediary. [11/2013] |
(4) Any person who, without reasonable excuse, fails to produce any book, account, record or other document or provide any information or facilities in accordance with subsection (2) shall be guilty of an offence and shall be liable on conviction —| (a) | in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; or | | (b) | in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [40 [11/2013] |
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| Investigation by Authority |
99.—(1) The Authority may conduct any investigation that it considers necessary or expedient for all or any of the following purposes:| (a) | to perform any of the Authority’s functions and duties under this Act; | | (b) | to determine the truth or otherwise of an alleged or suspected contravention of any provision of this Act or any direction issued under this Act. |
| (2) For the purposes of subsection (1), the Authority may, in writing, require any person named therein to provide information or to produce books, accounts, records and other documents, whether in electronic, print or other form, relating to any matter under investigation, and such person must immediately comply with that requirement. |
(3) Nothing in this Part —| (a) | compels an advocate and solicitor, or a legal counsel referred to in section 128A of the Evidence Act 1893, to disclose or produce a privileged communication, or a document or other material containing a privileged communication, made by or to him or her in that capacity; or | | (b) | authorises the taking of any such document or other material which is in his or her possession. [23/2003; 11/2013] |
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| (4) If an advocate and solicitor, or a legal counsel referred to in section 128A of the Evidence Act 1893, refuses to disclose the information or produce the document or other material referred to in subsection (3), he or she is nevertheless obliged to give the name and address (if he or she knows them) of the person to whom, or by or on behalf of whom, that communication was made. [23/2003; 11/2013] |
(5) Any person who, without reasonable excuse, fails to comply with subsection (2) or (4) shall be guilty of an offence and shall be liable on conviction —| (a) | in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; or | | (b) | in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [40A [11/2013] |
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| Inspection in Singapore by parent supervisory authority |
100.—(1) In relation to a licensed insurer incorporated outside Singapore or a foreign‑owned licensed insurer incorporated in Singapore, a parent supervisory authority may, with the prior written approval of the Authority and under conditions of secrecy, conduct an inspection in Singapore of the books of the licensed insurer in Singapore in accordance with this section, if the following conditions are satisfied:| (a) | the inspection is required by the parent supervisory authority for the sole purpose of carrying out its supervisory functions; | | (b) | the parent supervisory authority —| (i) | is prohibited by the laws applicable to the parent supervisory authority from disclosing information obtained by it in the course of the inspection to any other person; or | | (ii) | has given to the Authority such written undertaking as to the confidentiality of the information obtained, as the Authority may determine; and |
| | (c) | the parent supervisory authority has given a written undertaking to the Authority to comply with the provisions of this Act and such conditions as the Authority may impose under subsection (2). [11/2013] |
(2) The Authority may at any time, whether before, on or after giving written approval for an inspection under this section, require the parent supervisory authority to comply with conditions relating to —| (a) | the classes of information to which the parent supervisory authority may or may not have access in the course of the inspection; | | (b) | the conduct of the inspection; | | (c) | the use or disclosure of any information obtained in the course of the inspection; and | | (d) | such other matters as the Authority may determine. [11/2013] |
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(3) Subject to compliance by a parent supervisory authority with such conditions as the Authority may impose under subsection (2), a licensed insurer under inspection —| (a) | must give the parent supervisory authority access to such books of the licensed insurer under inspection, and provide such information (including information relating to the licensed insurer’s internal control systems) and facilities as may be required to conduct the inspection; and | | (b) | is not required to give the parent supervisory authority access to its books or to provide information or facilities at such times or at such places as would unduly interfere with the proper conduct of the normal daily business of the licensed insurer under inspection. [11/2013] |
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| (4) A parent supervisory authority may, with the prior written approval of the Authority, appoint any person to conduct the inspection under subsection (1), and in such event, this section (other than this subsection) applies to the person as if a reference to the parent supervisory authority or any official of the parent supervisory authority in this section includes a reference to the person. [11/2013] |
| (5) Any licensed insurer which, without reasonable excuse, refuses or neglects to afford access to any book or provide any information or facility as may be required by this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [11/2013] |
(6) To avoid doubt, this section, and section 101 in relation to an inspection under this section, do not apply to any inspection by a parent supervisory authority of the books of a licensed insurer, if —| (a) | the parent supervisory authority is an AML/CFT authority as defined in section 17 of the Financial Services and Markets Act 2022, and exercises consolidated supervision authority as defined in that section over the licensed insurer; and [Act 18 of 2022 wef 28/04/2023] | | (b) | the inspection is solely for the purpose of such consolidated supervision. [31/2017] |
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(7) In this section and section 101, unless the context otherwise requires —| “foreign-owned”, in relation to a licensed insurer incorporated in Singapore, means a licensed insurer whose parent is incorporated, formed or established in a foreign country; |
| “parent”, in relation to a licensed insurer, means a financial institution which is able to exercise a significant influence over the direction and management of the licensed insurer or which has a controlling interest in the licensed insurer; |
“parent supervisory authority” —| (a) | in relation to a licensed insurer incorporated outside Singapore, means the supervisory authority which is responsible, under the laws of the country or territory where the licensed insurer or its parent is incorporated, formed or established, for supervising the licensed insurer or its parent, as the case may be; or | | (b) | in relation to a foreign-owned licensed insurer incorporated in Singapore, means the supervisory authority which has consolidated supervision authority over the licensed insurer. [40B [11/2013] |
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| Confidentiality of inspection and investigation reports produced in respect of licensed insurer |
101.—(1) Where a written report or any part thereof (called in this section the report) has been produced in respect of any licensed insurer in Singapore —| (a) | by the Authority upon an inspection under section 98 or an investigation under section 99; or | | (b) | by a parent supervisory authority upon an inspection under section 100, |
| the report must not be disclosed by the licensed insurer, or any officer or auditor of the licensed insurer, to any other person except in the circumstances provided under subsection (2). |
[11/2013] (2) Disclosure of the report referred to in subsection (1) may be made —| (a) | by the licensed insurer in Singapore to any officer or auditor of that licensed insurer, solely in connection with the performance of the duties of the officer or auditor (as the case may be) in that licensed insurer; | | (b) | by any officer or auditor of the licensed insurer in Singapore to any other officer or auditor of that licensed insurer, solely in connection with the performance of their duties in that licensed insurer; | | (c) | to the Authority, if requested by the Authority, where the report has been produced by a parent supervisory authority; or | | (d) | to such other person as the Authority may approve in writing. [11/2013] |
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| (3) In granting written approval for any disclosure under subsection (2)(d), the Authority may impose such conditions as it considers appropriate. [11/2013] |
| (4) The obligation on an officer or auditor of a licensed insurer referred to in subsection (1) continues after the termination or cessation of the officer’s or auditor’s employment or appointment at the licensed insurer. [11/2013] |
(5) Any person who contravenes subsection (1) or fails to comply with any condition imposed by the Authority under subsection (3) shall be guilty of an offence and shall be liable on conviction —| (a) | in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or | | (b) | in any other case, to a fine not exceeding $250,000. [11/2013] |
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(6) Any person to whom the report is disclosed and who knows or has reasonable grounds for believing, at the time of the disclosure, that the report was disclosed to the person in contravention of subsection (1) shall be guilty of an offence, unless the person proves that —| (a) | the disclosure was made contrary to the person’s desire; | | (b) | where the disclosure was made in any written form, the person has as soon as practicable surrendered or taken all reasonable steps to surrender the report and all copies thereof to the Authority; and | | (c) | where the disclosure was made in an electronic form, the person has as soon as practicable taken all reasonable steps to ensure that all electronic copies of the report have been deleted, and that the report and all copies thereof in other forms have been surrendered to the Authority. [11/2013] |
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(7) In this section, unless the context otherwise requires, “officer”, in relation to a licensed insurer, includes —| (a) | a director, a secretary or an employee of the insurer; | | (b) | a receiver or manager of any part of the undertaking of the insurer appointed under a power contained in any instrument; and | | (c) | the liquidator of the insurer appointed in a voluntary winding up. [40C [11/2013] |
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Division 3 — Powers where licensed insurer or insurance intermediary is unable to meet obligations, etc. |
[11/2013] | Action by Authority if relevant person unable to meet obligations, etc. |
102.—(1) The Authority may exercise one or more of the powers specified in subsection (2) as appears to it to be necessary where —| (a) | the Authority is satisfied that —| (i) | the affairs of any relevant person are being conducted in a manner which is likely to be detrimental to the public interest or the interest of the policy owners or prejudicial to the interest of the relevant person; | | (ii) | a relevant person is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it is about to suspend payments; | | (iii) | a relevant person has contravened any of the provisions of this Act; or | | (iv) | a relevant person has failed to comply with any conditions attached to its registration (if any), or licence, as the case may be; |
| | (b) | a relevant person informs the Authority that it is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it has suspended or is about to suspend payments; | | (c) | a relevant person becomes unable to meet its obligations, or is insolvent, or suspends payments; or | | (d) | the Authority considers it in the public interest to do so. [16/2011; 11/2013] |
(2) The Authority may exercise all or any of the following powers for the purposes of subsection (1):| (a) | issue such directions to require the relevant person to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary, including —| (i) | recruiting such management personnel as may be necessary to enable it to conduct its business in accordance with sound insurance principles; | | (ii) | removing any of its directors or any person whom the Authority considers unfit to be associated with it; | | (iii) | taking action as to the disposition or recovery of its property; | | (iv) | taking any available steps for the recovery by the relevant person (as the case may be) of sums appearing to the Authority to have been illegally or improperly paid; | | (v) | in the case of a licensed insurer, stopping the renewal or issuance of further policies of the class of business which the insurer is carrying on; | | (vi) | making such arrangements with respect to reinsurance as the Authority so specifies; or | | (vii) | taking action to make good any default under section 15, 16, 17, 18, 19, 81 or 82; |
| | (b) | subject to subsection (3), assume control of and manage such of the business of a licensed insurer as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms and conditions as the Authority may specify. [16/2011; 11/2013] |
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(3) In the case of a licensed insurer incorporated outside Singapore, any appointment of a statutory manager or any assumption of control by the Authority of any business of the licensed insurer under subsection (2) is only in relation to —| (a) | the business and affairs of the licensed insurer carried on, or managed in or from, Singapore; and | | (b) | the property of the licensed insurer located in Singapore, or reflected in the books of the licensed insurer in Singapore (as the case may be) in relation to its operations in Singapore. [16/2011; 11/2013] |
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(4) Where the Authority appoints 2 or more persons as the statutory manager of a licensed insurer, it must specify, in the terms and conditions of the appointment, which of the duties, functions and powers of the statutory manager —| (a) | may be discharged or exercised by such persons jointly and severally; | | (b) | must be discharged or exercised by such persons jointly; and | | (c) | must be discharged or exercised by a specified person or such persons. [16/2011; 11/2013] |
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(5) Where the Authority has exercised any power under subsection (2), it may, at any time and without prejudice to its power under section 13(3)(p), do one or more of the following:| (a) | vary or revoke any requirement of any appointment made by or any action taken by the Authority in the exercise of such power, on such terms and conditions as it may specify; | | (b) | further exercise any of the powers under subsection (2); | | (c) | add to, vary or revoke any term or condition specified by the Authority under this section. [16/2011] |
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(6) No liability shall be incurred by a statutory manager as a result of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —| (a) | the exercise or purported exercise of any power under this Act; | | (b) | the performance or purported performance of any function or duty under this Act; or | | (c) | the compliance or purported compliance with this Act. [16/2011] |
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(7) Any relevant person who fails to comply with any direction of the Authority under this section shall be guilty of an offence and shall be liable on conviction —| (a) | in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or | | (b) | in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction. [41 [11/2013] |
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| Effect of assumption of control under section 102 |
| 103.—(1) Upon assuming control of the relevant business of a licensed insurer, the Authority or statutory manager (as the case may be) must take custody or control of the relevant business. [16/2011; 11/2013] | (2) During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer, the Authority or statutory manager must manage the relevant business of the licensed insurer in the name of and on behalf of the insurer and is deemed to be an agent of the insurer. [16/2011; 11/2013] |
(3) In managing the relevant business of a licensed insurer, the Authority or statutory manager —| (a) | must take into consideration the interests of the policy owners of the licensed insurer; and | | (b) | has all the duties, powers and functions of the members of the board of directors of the licensed insurer (collectively and individually) under this Act, the Companies Act 1967 and the constitution of the licensed insurer, including powers of delegation, in relation to the relevant business of the licensed insurer; but nothing in this paragraph requires the Authority or the statutory manager to call any meeting of the licensed insurer under the Companies Act 1967, the Co‑operative Societies Act 1979 or the constitution of the licensed insurer. [16/2011; 11/2013] |
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(4) Despite any written law or rule of law, on the assumption of control of the relevant business of a licensed insurer by the Authority or statutory manager —| (a) | where the licensed insurer is established or incorporated in Singapore, any appointment of a person as a chief executive or director of the licensed insurer; or | | (b) | where the licensed insurer is established or incorporated outside Singapore, any appointment of a person as a chief executive of the insurer insofar as the appointment relates to the relevant business of the licensed insurer, |
| which was in force immediately before the assumption of control, is deemed to be revoked unless the Authority gives its approval, by written notice to the person and the licensed insurer, for the person to remain in the appointment. |
[16/2011; 11/2013] |
(5) Despite any written law or rule of law, during the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer, no person may be appointed —| (a) | where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the licensed insurer; or | | (b) | where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer, insofar as the appointment relates to the relevant business of the licensed insurer, |
| except with the approval of the Authority. |
[16/2011; 11/2013] |
| (6) Where the Authority has given its approval under subsection (4) or (5) for a person to remain in the appointment of, or for a person to be appointed as, a chief executive or a director of a licensed insurer, the Authority may at any time, by written notice to the person and the licensed insurer, revoke its approval and such appointment is deemed to be revoked on the date specified in the notice. [16/2011; 11/2013] |
(7) Despite any written law or rule of law, if any person, whose appointment as a chief executive or director of a licensed insurer is revoked under subsection (4) or (6), acts or purports to act after the revocation —| (a) | where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the insurer; or | | (b) | where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer in relation to the relevant business of the insurer, |
| during the period when the Authority or statutory manager is in control of the relevant business of the licensed insurer — |
| (c) | the act or purported act of the person is invalid and of no effect; and | | (d) | the person shall be guilty of an offence. [16/2011; 11/2013] |
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(8) Despite any written law or rule of law, if any person who is appointed as a chief executive or director of a licensed insurer in contravention of subsection (5) acts or purports to act —| (a) | where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the licensed insurer; or | | (b) | where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer in relation to the relevant business of the licensed insurer, |
| during the period when the Authority or statutory manager is in control of the relevant business of the licensed insurer — |
| (c) | the act or purported act of the person is invalid and of no effect; and | | (d) | the person shall be guilty of an offence. [16/2011; 11/2013] |
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(9) During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer —| (a) | if there is any conflict or inconsistency between —| (i) | a direction or decision given by the Authority or statutory manager (including a direction or decision to a person or body of persons referred to in sub-paragraph (ii)); and | | (ii) | a direction or decision given by a chief executive, director, member, executive officer, employee, agent or office holder, or the board of directors, of the licensed insurer, |
| the direction or decision referred to in sub-paragraph (i), to the extent of the conflict or inconsistency, prevails over the direction or decision referred to in sub-paragraph (ii); and |
| | (b) | a person must not exercise any voting or other right attached to any share in the licensed insurer in any manner that may defeat or interfere with any duty, function or power of the Authority or statutory manager, and any such act or purported act is invalid and of no effect. [16/2011; 11/2013] |
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| (10) Any person who is guilty of an offence under subsection (7) or (8) shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction. [11/2013] |
| (11) In this section, “constitution of the licensed insurer” means the memorandum of association and articles of association of the licensed insurer or other instrument under which the licensed insurer is established or incorporated. [41A [16/2011; 11/2013] |
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| 104.—(1) The Authority must cease to be in control of the relevant business of a licensed insurer when the Authority is satisfied that the reasons for its assumption of control of the relevant business have ceased to exist or that it is no longer necessary for the protection of the policy owners of the licensed insurer. [16/2011; 11/2013] | (2) A statutory manager is deemed to have assumed control of the relevant business of a licensed insurer on the date of his or her appointment as a statutory manager. [16/2011; 11/2013] |
(3) The appointment of a statutory manager in relation to the relevant business of a licensed insurer may be revoked by the Authority at any time —| (a) | if the Authority is satisfied that the reasons for the appointment have ceased to exist or that it is no longer necessary for the protection of the policy owners of the licensed insurer; or | | (b) | on any other ground, |
| and upon such revocation, the statutory manager ceases to be in control of the relevant business of the licensed insurer. |
[16/2011; 11/2013] |
(4) The Authority must publish in the Gazette the date, and any other particulars that it thinks fit, of —| (a) | its assumption of control of the relevant business of a licensed insurer; | | (b) | the cessation of its control of the relevant business of a licensed insurer; | | (c) | the appointment of a statutory manager in relation to the relevant business of a licensed insurer; and | | (d) | the revocation of a statutory manager’s appointment in relation to the relevant business of a licensed insurer. [41B [16/2011; 11/2013] |
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| Responsibilities of officers, member, etc., of licensed insurer |
105.—(1) During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer —| (a) | the General Division of the High Court may, on an application of the Authority or statutory manager, direct any person who has ceased to be or who is still a chief executive, director, member, executive officer, employee, agent, banker, auditor or office‑holder of, or trustee for, the licensed insurer to pay, deliver, convey, surrender or transfer to the Authority or statutory manager, within such period as the General Division of the High Court may specify, any property, book, accounts, record or other documents, whether in electronic, print or other form, of the insurer which is comprised in, forms part of or relates to the relevant business of the insurer, and which is in the person’s possession or control; and | | (b) | any person who has ceased to be or who is still a chief executive, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the insurer must give to the Authority or statutory manager such information as the Authority or statutory manager may require for the discharge of its, his or her duties or functions, or the exercise of its, his or her powers, in relation to the licensed insurer, within such time and in such manner as may be specified by the Authority or statutory manager. [16/2011; 11/2013; 40/2019] |
(2) Any person who —| (a) | without reasonable excuse, fails to comply with subsection (1)(b); or | | (b) | in purported compliance with subsection (1)(b), knowingly or recklessly provides any information or document that is false or misleading in a material particular, |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction. |
[41C [16/2011; 11/2013] |
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| Remuneration and expenses of Authority and others in certain cases |
106. The Authority may at any time fix the remuneration and expenses to be paid by a licensed insurer —| (a) | to a statutory manager appointed in relation to a licensed insurer, whether or not the appointment has been revoked; and | | (b) | where the Authority has assumed control of the relevant business of the licensed insurer, to the Authority and any person employed or authorised by the Authority under section 137 in relation to its assumption of control of the relevant business, whether or not the Authority has ceased to be in control of the relevant business. [41D [16/2011; 11/2013] |
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107.—(1) The General Division of the High Court may, on the application of the Authority, if it considers it to be in the interests of the policy owners of a licensed insurer, make one or more of the following orders:| (a) | that no resolution may be passed, and no order may be made, for the winding up of the licensed insurer; | | (b) | that no proceedings may be commenced or continued by or against the licensed insurer in respect of any business of the licensed insurer; | | (c) | that no enforcement order, distress or other legal process may be commenced, levied or continued against any property of the licensed insurer; [Act 25 of 2021 wef 01/04/2022] | | (d) | that no steps may be taken to enforce any security over any property of the licensed insurer or to repossess from the licensed insurer any goods under any hire‑purchase agreement, chattels leasing agreement or retention of title agreement; | | (e) | that no steps may be taken by any person, other than a person specified in the order, to sell, transfer, assign or otherwise dispose of any property of the licensed insurer. [16/2011; 11/2013; 40/2019] |
| (2) Any sale, transfer, assignment or other disposition of any property of the licensed insurer in contravention of any order made under subsection (1)(e) is void. [16/2011; 11/2013] |
| (3) Any order made under subsection (1) is valid for a period not exceeding 6 months. [41E [16/2011] |
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| Interpretation of sections 102 to 107 |
108. In sections 102 to 107, unless the context otherwise requires —| “business” includes affairs and property; |
| “office-holder”, in relation to a licensed insurer, means any person acting in relation to the insurer as its liquidator, provisional liquidator, receiver, receiver and manager or an equivalent person; |
| “property” includes property, right and power of every description; |
“relevant business” means any business of a licensed insurer —| (a) | which the Authority has assumed control of under section 102; or | | (b) | in relation to which a statutory manager has been appointed under section 102; |
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| “relevant person” means a licensed insurer or an insurance intermediary; |
| “statutory manager” means a statutory manager appointed under section 102. [41F [16/2011; 11/2013] |
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