Central Provident Fund (Investment Schemes) (Amendment) Regulations 2001

No. S 468

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Investment Schemes) (Amendment) Regulations 2001

In exercise of the powers conferred by section 77(1)(m) of the Central Provident Fund Act, the Minister for Manpower, after consultation with the Central Provident Fund Board, hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Central Provident Fund (Investment Schemes) (Amendment) Regulations 2001 and shall come into operation on 27th September 2001.

Amendment of regulation 2

2. Regulation 2 of the Central Provident Fund (Investment Schemes) Regulations 2000 (G.N. No. S 609/2000) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by inserting, immediately after the definition of “CPF Investment Account”, the following definition:

“ “exchange traded fund interest” means any interest —

(a)

in a scheme or arrangement which is made for the purpose, or having the effect, of providing facilities for the participation by persons as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of a portfolio of predetermined constituent assets in predetermined proportions, which constituent assets principally comprise securities listed for quotation on any stock exchange; and

(b)

that is —

(i)	listed for quotation, or has received approval in-principle for listing and quotation, on any stock exchange; and
(ii)	created and redeemed in blocks of interests in exchange for the constituent assets in the portfolio, including cash as necessary to accomplish such exchange; and
(iii)	approved by the Board for the purposes of these Regulations,

whether or not the interest is an interest in a unit trust;”; and

(b)

by inserting, immediately after paragraph (h) of the definition of “securities”, the following paragraph:

“(i)	exchange traded fund interest;”.

New regulation 18A

3. The principal Regulations are amended by inserting, immediately after regulation 18, the following regulation:

“Exchange traded fund interest

18A.—(1) A member who wishes to use the whole or part of the available amount in his ordinary account to purchase an exchange traded fund interest through the Singapore Exchange or from an approved fund manager shall apply to the Board to withdraw the amount required.

(2) An application made by a member under paragraph (1) may be approved subject to such terms, conditions and procedures as the Board may impose.

(3) Upon the sale of the exchange traded fund interest purchased by a member under this regulation, all proceeds of the sale shall be transferred forthwith to the CPF Investment Account of the member.”.

Amendment of regulation 19

4. Regulation 19 of the principal Regulations is amended by inserting, immediately after paragraph (2), the following paragraph:

“(3) Any exchange traded fund interest purchased with CPF contributions withdrawn under this Part through the Singapore Exchange or from an approved fund manager shall be held in the name of a nominee company of the approved agent bank or a nominee company of the approved fund manager, as the case may be.”.

Amendment of regulation 24

5. Regulation 24 of the principal Regulations is amended by deleting the words “paragraphs (b), (c), (d), (e) and (g)” and substituting the words “paragraphs (b), (c), (d), (e), (g) and (i)”.

New regulation 29A

6. The principal Regulations are amended by inserting, immediately after regulation 29, the following regulation:

“Exchange traded fund interest

29A.—(1) A member who wishes to use the whole or part of the available amount in his special account to purchase an exchange traded fund interest through the Singapore Exchange or from an approved fund manager shall apply to the Board to withdraw the amount required.

(2) An application made by a member under paragraph (1) may be approved subject to such terms, conditions and procedures as the Board may impose.

(3) Upon the sale of the exchange traded fund interest purchased by a member under this regulation, all proceeds of the sale shall be transferred forthwith to the special account of the member.”.

Amendment of regulation 34

7. Regulation 34 of the principal Regulations is amended —

(a)

by inserting, immediately after the word “year” in the last line of paragraph (1), the words “in accordance with this regulation”; and

(b)

by deleting paragraph (5) and substituting the following paragraphs:

“(5) A member shall, before 1st October 2003, be entitled to withdraw the net realised profits arising from the purchase of securities under Part II or IV of any accounting year in the following accounting year.

(5A) A member shall be entitled to withdraw only 50% of the net realised profits (including accumulated profits) of the accounting year commencing on 1st October 2001.

(5B) No member shall, on or after 1st October 2003, withdraw any net realised profits arising from the purchase of securities under Part II or IV.”.

Made this 26th day of September 2001.

TAN CHIN NAM

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MM S 2.4.3/80 V3; AG/LEG/SL/36/97/1 Vol. 2]

(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).

Search within Legislation