9. The principal Regulations are amended by inserting, immediately after regulation 14, the following regulations:| “Deduction of investment from balance in SRS account |
14A.—(1) An SRS operator may approve an application by an SRS member for a deduction of an investment from the balance in an SRS account in accordance with this regulation.(2) Subject to paragraph (3), an SRS member may, in the manner specified by the member’s SRS operator, apply to the SRS operator to approve a deduction of an investment from the balance in the member’s SRS account in the following circumstances:| (a) | where the deduction would amount to a withdrawal referred to in section 10L(3)(a), (b) or (c) of the Act; or | | (b) | at any time after any balance remaining in the member’s SRS account is deemed withdrawn under section 10L(6) or (7) of the Act, or the sums standing in the member’s SRS account are deemed withdrawn under section 10L(9) of the Act. |
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| (3) No application for a deduction of any investment that is a life annuity may be made under paragraph (2)(b). |
(4) The SRS operator must not approve an SRS member’s application made under paragraph (2) if the SRS operator is not satisfied that —| (a) | the sums representing the investment to be deducted from the balance in the SRS account can be separately identified; and | | (b) | the investment to be deducted from the balance in the SRS account can be separately valued in accordance with regulation 14B. |
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(5) Where the SRS operator approves an SRS member’s application made under paragraph (2), the date of approval is taken to be —| (a) | where the SRS member is a citizen of Singapore, the application receipt date; and | | (b) | where the SRS member is not a citizen of Singapore, the date on which the SRS operator has collected tax from the SRS member in accordance with section 45EA of the Act. |
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| (6) An SRS operator who fails to comply with paragraph (4) shall be guilty of an offence. |
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| Valuation of investment deducted from balance of SRS account |
14B.—(1) This regulation states what the value of an investment that is deducted from the balance in an SRS account is for the purposes of sections 10L(1), (2), (3), (3D) and (3E) and 45EA of the Act.(2) Where an investment is deducted pursuant to an application under regulation 14A in the circumstances set out in regulation 14A(2)(a), the investment is to be valued as follows:| (a) | in the case of listed shares, warrants, loan stocks and bonds, the closing price of the investment as at the application receipt date; | | (b) | in the case of listed shares, warrants, loan stocks and bonds that are suspended, the last traded price of the investment before the application receipt date; | | (c) | in the case of unlisted shares, the net asset value of the shares as at the application receipt date; | | (d) | in the case of unit trusts, the published price or last available price of the unit trusts as at the application receipt date; | | (e) | in the case of fixed deposits with financial institutions maturing after the date of the application receipt date, the principal amount of the fixed deposits; | | (f) | in the case of deposits with financial institutions (other than fixed deposits), the principal amount of the deposits plus all interest that has accrued up to the application receipt date; | | (g) | in the case of insurance products, the surrender value of the products as at the application receipt date; or | | (h) | in the case of any other investment, the market value of the investment on the application receipt date. |
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| (3) For the purposes of paragraph (2), if the investment is in a foreign currency, the SRS operator must reflect the value of the investment in Singapore dollars using the exchange rate prevailing on the application receipt date. |
| (4) Where an investment is deducted pursuant to an application under regulation 14A in the circumstances set out in regulation 14A(2)(b), the investment is to be valued for the purposes of section 45EA of the Act in accordance with regulation 15(2) and (3). |
| (5) Despite paragraphs (2) and (3), if the SRS operator is unable to value the investment under paragraphs (2) and (3), the SRS operator must inform the Comptroller who may determine the value of the investment using any other reasonable basis. |
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| Information to be provided by SRS operator following application made under regulation 14A |
14C.—(1) If the SRS operator does not approve an application by an SRS member who is a citizen of Singapore for a deduction of an investment from the balance in the member’s SRS account under regulation 14A(2), the SRS operator must inform the SRS member of that fact and the reason why the application was not approved.(2) If the SRS operator approves an application by an SRS member who is a citizen of Singapore for a deduction of an investment from the balance in the member’s SRS account under regulation 14A(2), the SRS operator must inform the SRS member of that fact, the date of approval of the application as determined under regulation 14A(5) and —| (a) | where the application was made in the circumstances referred to in regulation 14A(2)(a) —| (i) | the application receipt date; and | | (ii) | the value of the investment as determined under regulation 14B(2) and (3), or regulation 14B(5), whichever may be applicable; or |
| | (b) | where the application was made in the circumstances referred to in regulation 14A(2)(b) —| (i) | the date of the deemed withdrawal under section 10L(6), (7) or (9) of the Act, as the case may be; and | | (ii) | the value of the investment as determined under regulation 14B(4). |
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| (3) If the SRS operator does not propose to approve an application by an SRS member who is not a citizen of Singapore for a deduction of an investment from the balance in the member’s SRS account under regulation 14A(2), the SRS operator must inform the SRS member of that fact and the reason why the application will not be approved. |
(4) If the SRS operator proposes to approve an application by an SRS member who is not a citizen of Singapore for a deduction of an investment from the balance in the member’s SRS account under regulation 14A(2), the SRS operator must, before the SRS operator approves the application, inform the SRS member of the following:| (a) | that it proposes to approve the application; | | (b) | that the application will only be approved by the SRS operator after the SRS operator has collected tax from the SRS member in accordance with section 45EA of the Act; and | | (c) | either —| (i) | where the application was made in the circumstances referred to in regulation 14A(2)(a) —| (A) | the application receipt date; and | | (B) | the value of the investment as determined under regulation 14B(2) and (3), or regulation 14B(5), whichever may be applicable; or |
| | (ii) | where the application was made in the circumstances referred to in regulation 14A(2)(b) —| (A) | the date of the deemed withdrawal under section 10L(6), (7) or (9) of the Act, as the case may be; and | | (B) | the value of the investment as determined under regulation 14B(4). |
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| (5) If the SRS operator approves an SRS member’s application for a deduction of an investment under regulation 14A(2), the SRS operator must also provide such information to any financial product provider as may be agreed between them as will enable the financial product provider to exclude the investment for the purpose of complying with regulation 12(1). |
| (6) An SRS operator who fails to comply with paragraph (1), (2), (3), (4) or (5) shall be guilty of an offence. |
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| Definitions for regulations 14A, 14B and 14C |
14D.—(1) In regulations 14A, 14B and 14C —| “application receipt date” means the date on which an SRS member’s application under regulation 14A(2) is received by the SRS operator; |
| “SRS member” includes, in the case of an SRS member who is deceased, the legal personal representative of the SRS member. |
| (2) For the purposes of regulations 14A, 14B and 14C, a reference to a deduction of an investment from the balance in an SRS account is a reference to a deduction of the sums representing that investment from the balance in that account.”. |
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