Central Provident Fund (Investment Schemes) (Amendment No. 2) Regulations 2008

No. S 511

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Investment Schemes) (Amendment No. 2) Regulations 2008

In exercise of the powers conferred by section 77(1)(n) of the Central Provident Fund Act, Mr Gan Kim Yong, Senior Minister of State, charged with the responsibility of the Minister for Manpower, after consulting 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 No. 2) Regulations 2008 and shall come into operation on 1st November 2008.

Deletion and substitution of regulations 24 and 25

2. Regulations 24 and 25 of the Central Provident Fund (Investment Schemes) Regulations (Rg 9) (referred to in these Regulations as the principal Regulations) are deleted and the following regulations substituted therefor:

“Repayment from CPF Investment Account to ordinary account

24.—(1) Where a member has not operated his CPF Investment Account for a period of 2 months or such longer period as the Board may allow —

(a)	the member shall be obliged to repay into the Fund, on the expiry of that period, all moneys in his CPF Investment Account; and
(b)	the approved agent bank shall forthwith transfer all moneys in the member’s CPF Investment Account to the Board to be credited to the member’s ordinary account.

(2) Where a member has transferred the whole or part of the available amount in his ordinary account to his CPF Investment Account for the purpose of purchasing shares or bonds offered under an initial public offer under regulation 14 but is unsuccessful in making such purchase —

(a)	the member shall, upon that failure to purchase, be obliged to repay into the Fund such amount as is refunded to his CPF Investment Account by the company which made the initial public offer or its agent; and
(b)	the approved agent bank shall, not earlier than 3 working days before the last day of the month in which the amount was refunded to the member’s CPF Investment Account, transfer that amount from the CPF Investment Account to the Board to be credited to the member’s ordinary account.

Termination of CPF Investment Account

25.—(1) Where a member wishes to terminate his CPF Investment Account with an approved agent bank and does not intend to open a CPF Investment Account with another approved agent bank —

(a)

the member shall —

(i)

sell and dispose of all securities purchased or acquired by him under this Part; and

(ii)

be obliged to repay into the Fund, before the termination of his CPF Investment Account —

(A)	the total proceeds thereof; and
(B)	all other moneys in his CPF Investment Account; and

(b)

the approved agent bank shall forthwith transfer to the Board, to be credited to the member’s ordinary account, the total proceeds and other moneys referred to in sub-paragraph (a)(ii)(A) and (B).

(2) Paragraph (1) shall not apply in any case where regulation 40 applies.”.

New regulation 39A

3. The principal Regulations are amended by inserting, immediately after regulation 39, the following regulation:

“General obligation to repay into Fund proceeds and benefits of securities

39A. Except as otherwise provided in regulations 23A, 40 and 43, a member shall be obliged to repay into the Fund the proceeds and benefits of all securities purchased or acquired under these Regulations.”.

Deletion and substitution of regulation 40

4. Regulation 40 of the principal Regulations is deleted and the following regulation substituted therefor:

“Withdrawal under section 15 or 27 of Act

40.—(1) A member who is entitled to withdraw any sum standing to his credit in the Fund under section 15 or 27 of the Act may do either or both of the following:

(a)

apply to the Board for its approval for him —

(i)	to withdraw all moneys standing to his credit in his CPF Investment Account; and
(ii)	to withdraw, from every investment scheme introduced under Parts II and III pursuant to which he has purchased or acquired any securities, all securities so purchased or acquired by him under those Parts;

(b)

apply to the Board for its approval for him to withdraw, from any investment scheme introduced under Part IV pursuant to which he has purchased or acquired any securities, all securities so purchased or acquired by him pursuant to that investment scheme.

(2) The Board may —

(a)	require an application under paragraph (1)(a) or (b) to be made in such manner as the Board may determine; and
(b)	approve an application under paragraph (1)(a) or (b) subject to such terms and conditions as the Board may impose.

(3) The Board may refuse to approve a member’s application under paragraph (1)(a) or (b) if it is not satisfied that adequate provision has been made for the member —

(a)	to set aside or top-up the minimum sum applicable to him, or to set aside or top-up in his retirement account the amount referred to in section 15(2A)(a), (7B)(a) or (8A)(a) of the Act, as the case may be;
(b)	to set aside or top-up in his medisave account the prescribed amount referred to in section 16 of the Act; and
(c)	to pay or repay into the Fund every amount which, apart from regulation 39A, he is required under the Act to pay or repay into the Fund.

(4) A member shall not be obliged to repay into the Fund —

(a)	any moneys withdrawn from his CPF Investment Account with the approval of the Board under paragraph (1)(a)(i); and
(b)	any proceeds or benefits of any securities which he has withdrawn with the approval of the Board under paragraph (1)(a)(ii) or (b).”.

Amendment of regulation 43

5. The principal Regulations are amended by renumbering regulation 43 as paragraph (1) of that regulation, and by inserting immediately thereafter the following paragraphs:

“(2) A member’s obligation to repay into the Fund the proceeds and benefits of any securities which he has purchased or acquired pursuant to any investment scheme introduced under Part II or III, and which he has not withdrawn with the approval of the Board under regulation 40(1)(a)(ii), shall cease upon his death.

(3) Where —

(a)	a member has purchased or acquired pursuant to any investment scheme introduced under Part IV, and has not withdrawn with the approval of the Board under regulation 40(1)(b), any securities;
(b)	those securities are shares designated under section 26(1) of the Act; and
(c)	no person has been nominated by the member under section 25(1) of the Act to receive those securities or any portion thereof,

the member’s obligation to repay into the Fund the proceeds and benefits of those securities or of that portion thereof, as the case may be, shall cease upon his death.

(4) A member’s obligations under regulations 24 and 25 to repay into the Fund any moneys standing to his credit in his CPF Investment Account shall cease upon his death.”.

[G.N. Nos. S 723/2006; S 514/2007; S 704/2007; S 145/2008]

Made this 15th day of October 2008.

LEO YIP

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MMS 7/68 V53; AG/LEG/SL/36/2005/33 Vol. 1]

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

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