Children Development Co-Savings Regulations

Children Development Co-Savings Act

(Chapter 38A, Sections 3 and 7)

Rg 2

G.N. No. S 233/2001

REVISED EDITION 2003

(31st January 2003)

[26th April 2001]

Citation

1. These Regulations may be cited as the Children Development Co-Savings Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“adopted” means adopted in accordance with any written law relating to the adopting of children;

[S 603/2004 wef 01/10/2004]

“adoptive parent” means —

(a)	in relation to a child who is adopted by a couple who is married at the time of the adoption, the adoptive mother; and
(b)	in relation to a child who is adopted by a person who is divorced or widowed at the time of the adoption, that person;

[S 603/2004 wef 01/10/2004]

“child care centre” means any premises at which 5 or more children who are below the age of 7 years are habitually received for the purposes of care and supervision during part of the day or for longer periods;

“Director” means a Director of the Ministry of Community Development, Youth and Sports appointed by the Minister for the purposes of these Regulations;

[S 603/2004 wef 01/10/2004]

“early intervention centre” means an entity which provides any early intervention programme that is —

(a)	intended for children with one or more disabilities; and
(b)	registered with the National Council of Social Service ;

[S 424/2005 wef 01/07/2005]

“estimated delivery date” means the estimated date of delivery of a child as certified by a medical practitioner;

[S 603/2004 wef 01/10/2004]

“insurer” has the same meaning as in the Central Provident Fund (Private Medical Insurance Scheme) Regulations 2005 (G.N. No. S 428/2005);

[S 769/2005 wef 05/12/2005]

“integrated medical insurance plan” has the same meaning as in the Central Provident Fund (Private Medical Insurance Scheme) Regulations 2005;

[S 769/2005 wef 05/12/2005]

“managing agent” means a person appointed by the Minister as a managing agent under regulation 4;

“MediShield Scheme” means the MediShield Scheme established under section 53 of the Central Provident Fund Act (Cap. 36);

[S 769/2005 wef 05/12/2005]

“member” means a member of the Scheme;

“parent” includes an adoptive parent;

[S 603/2004 wef 01/10/2004]

“premium” means any premium payable in respect of —

(a)	insurance cover under the MediShield Scheme; or
(b)	an integrated medical insurance plan,

and includes any goods and services tax thereon;

[S 769/2005 wef 05/12/2005]

“relevant time”, in relation to —

(a)	a child who is not adopted, means the date on which he is born or the date on which he becomes a citizen of Singapore, whichever is the later; and
(b)	a child who is an adopted child, means the date on which he is adopted or the date on which he becomes a citizen of Singapore, whichever is the later.

[S 603/2004 wef 01/10/2004]

“Scheme” means the Children Development Co-Savings Scheme established under regulation 3;

“service agreement” means the agreement entered into between the Government and the managing agent in relation to the operation and administration of the Scheme;

“sibling” means the natural sibling, step-sibling or adopted sibling of a member;

“special education school” means a school which provides special education to pupils with mental or physical disabilities.

Establishment of Scheme

3. For the purposes of Part II of the Act, there shall be established a scheme to be called the Children Development Co-Savings Scheme.

Managing agent

4.—(1) The Minister may appoint a managing agent to operate and administer the Scheme for and on behalf of the Minister on such terms and conditions as may be specified in the service agreement.

(2) The managing agent shall have such powers and perform such duties as may be imposed by these Regulations or as may be specified in the service agreement.

(3) The managing agent shall, on the instruction of the Director, open and maintain for every member of the Scheme a bank account (referred to in these Regulations as the Children Development Account) —

(a)

into which shall be credited —

(i)	the co-investment sum contributed by the parent of the member or any person on behalf of the parent under regulation 6(1);
(ii)	the co-payment sum contributed by the Government under regulation 6(2); and
(iii)	interest to be paid by the managing agent on the amount standing to the credit of the member’s Children Development Account at such rate per annum and at such intervals as the managing agent may determine; and

(b)

out of which shall be met all withdrawals authorised under regulation 9.

(4) The managing agent may, with the approval of the Minister and by instrument in writing, delegate all or any of its powers and duties referred to in paragraph (2) to any person.

(5) Any power conferred on or duty imposed on the managing agent or delegated by the managing agent to another person shall be subject to the authority and directions of the Minister.

Eligibility for membership of Scheme

4A.—(1) Subject to regulation 4B, where a child was born on or after 1st April 2001 but before 1st August 2004, the child shall be eligible to become a member of the Scheme if the following conditions are satisfied:

(a)

he is a citizen of Singapore at the time of his birth or he becomes a citizen of Singapore within 6 years of his birth;

(b)

his mother —

(i)	is lawfully married to his natural father at the time he is conceived; or
(ii)	becomes lawfully married to his natural father after he is conceived, whether or not such marriage remains subsisting;

(c)

he is born alive to his mother ; and

(d)

he is the second or third child born alive to his mother.

(2) Subject to regulation 4B, where a child who is not adopted is born —

(a)	on or after 1st August 2004; or
(b)	before 1st August 2004, but the estimated delivery date of the child is a date on or after 1st August 2004,

the child shall be eligible to become a member of the Scheme if the following conditions are satisfied:

(i)

he is a citizen of Singapore at the time of his birth or he becomes a citizen of Singapore within 6 years of his birth;

(ii)

his mother —

(A)	is lawfully married to his natural father at the time he is conceived; or
(B)	becomes lawfully married to his natural father after he is conceived, whether or not such marriage remains subsisting;

(iii)

he is born alive to his mother; and

(iv)

he is the second, third or fourth child of his mother at the relevant time.

(3) Subject to regulation 4B, a child who is born, and adopted, on or after 1st August 2004 shall be eligible to become a member of the Scheme if the following conditions are satisfied:

(a)	he is a citizen of Singapore at the time of his adoption or he becomes a citizen of Singapore within 6 years of his birth;
(b)	his adoptive parent is a person who is lawfully married, or widowed or divorced, at the time he is adopted;
(c)	he is the second, third or fourth child of his adoptive parent at the relevant time; and
(d)	he is below 6 years of age at the time he is adopted.

[S 603/2004 wef 01/10/2004]

Determination or re-determination of birth order

4B.—(1) The status of a child referred to in regulation 4A(2) or (3) as the second, third or fourth child of his mother or adoptive parent, as the case may be, for the purposes of these Regulations shall be determined or re-determined, as the case may be, in accordance with this regulation.

(2) In determining or re-determining the status of a child referred to in regulation 4A(2) or (3) as the second, third or fourth child at the relevant time —

(a)

any step-child of his mother or adoptive parent, as the case may be, shall be disregarded;

(b)

where the child is adopted by a man who is divorced, any other child of the man, being a child who is —

(i)	his natural child; or
(ii)	an adopted child who is not solely adopted by him,

shall be disregarded;

(c)

any other child of his mother or adoptive parent, as the case may be, being a child who is not a citizen of Singapore at the relevant time shall be disregarded;

(d)

any other child of his mother or adoptive parent, as the case may be, being a child who has been adopted by another person (other than the spouse of the mother or adoptive parent) at the relevant time, shall be disregarded; and

(e)

any other child of his mother or adoptive parent, as the case may be, who is deceased at the relevant time shall be taken into account.

(3) Notwithstanding paragraph (2)(e), where the mother or adoptive parent of a child whose status is being determined or re-determined under this regulation has had 4 or more other children before the relevant time but fewer than 4 of those children are living at the relevant time, the child shall be treated as if he is a fourth child for the purposes of these Regulations.

(4) The determination of the status of a child referred to in regulation 4A(2) as the second, third or fourth child of his mother at the relevant time shall be based on the chronological order of —

(a)	his date of birth;
(b)	the date of birth of every other natural child of his mother, being a child who is a citizen of Singapore at the relevant time; and
(c)	where his mother has any adopted child, the date of adoption of that adopted child or the date on which that adopted child became a citizen of Singapore, whichever is the later.

(5) The determination of the status of a child referred to in regulation 4A(3) as the second, third or fourth child of his adoptive parent at the relevant time shall be based on the chronological order of —

(a)	the date of adoption of the child or the date on which the child becomes a citizen of Singapore, whichever is the later;
(b)	the date of birth of every other natural child of his adoptive parent, being a child who is a citizen of Singapore at the relevant time; and
(c)	where his adoptive parent has any other adopted child, the date of adoption of that other adopted child or the date on which that other adopted child became a citizen of Singapore, whichever is the later.

(6) Where after a child becomes a member of the Scheme, any of the following events occurs, the status of the child as the second, third or fourth child for the purposes of these Regulations shall be re-determined in accordance with paragraphs (7) to (11) where applicable:

(a)	any other child of his mother or adoptive parent, as the case may be, who was not a citizen of Singapore at the relevant time, becomes a citizen of Singapore;
(b)	the child is adopted by another person (not being his mother or his step-father);
(c)	his mother or, in the case of an adopted child, his adoptive mother dies.

(7) Where the event referred to in paragraph (6)(a) occurs in relation to a child referred to in regulation 4A(2), the status of the child as the second, third or fourth child shall be re-determined based on the chronological order of —

(a)	his date of birth;
(b)	the date of birth of every other natural child of his mother, being a child who is a citizen of Singapore at the time the event occurs; and
(c)	where his mother has any adopted child, the date of adoption of that adopted child or the date on which that adopted child became a citizen of Singapore, whichever is the later.

(8) Where the event referred to in paragraph (6)(a) occurs in relation to a child referred to in regulation 4A(3), the status of the child as the second, third or fourth child shall be re-determined based on the chronological order of —

(a)	the date of adoption of the child or the date on which the child became a citizen of Singapore, whichever is the later;
(b)	the date of birth of every natural child of his adoptive parent, being a child who is a citizen of Singapore at the time the event occurs; and
(c)	where his adoptive parent has any other adopted child, the date of adoption of that other adopted child or the date on which that other adopted child became a citizen of Singapore, whichever is the later.

(9) Where the event referred to in paragraph (6)(b) occurs in relation to a child referred to in regulation 4A(2) or (3), the status of the child as the second, third or fourth child shall be re-determined based on the chronological order of —

(a)	the date of adoption of the child;
(b)	the date of birth of every natural child of his adoptive parent, being a child who is a citizen of Singapore at the time the event occurs; and
(c)	where his adoptive parent has any other adopted child, the date of adoption of that other adopted child or the date on which that other adopted child became a citizen of Singapore, whichever is the later.

(10) Where the event referred to in paragraph (6)(c) occurs in relation to a child referred to in regulation 4A(2), the status of the child as the second, third or fourth child shall be re-determined based on the chronological order of —

(a)	his date of birth;
(b)	the date of birth of every other natural child of his father, being a child who is a citizen of Singapore at the time the event occurs; and
(c)	where his father has any adopted child, the date of adoption of that adopted child or the date on which that adopted child became a citizen of Singapore, whichever is the later.

(11) Where the event referred to in paragraph (6)(c) occurs in relation to a child referred to in regulation 4A(3), the status of the child as the second, third or fourth child shall be re-determined based on the chronological order of —

(a)	the date of adoption of the child or the date on which the child became a citizen of Singapore, whichever is the later;
(b)	the date of birth of every natural child of his adoptive father, being a child who is a citizen of Singapore at the time the event occurs; and
(c)	where his adoptive father has any other adopted child, the date of adoption of that other adopted child or the date on which that other adopted child became a citizen of Singapore, whichever is the later.

[S 603/2004 wef 01/10/2004]

Application for membership of Scheme

5.—(1) [Deleted by S 603/2004 wef 01/10/2004]

(3) A parent of a child who wishes to participate in the Scheme shall, within 6 years of the date of birth of the child —

(a)	make an application for the child to be a member of the Scheme in such form as the Director may provide;
(b)	nominate a person to be the trustee of any Children Development Account which may be opened for the child; and
(c)	together with that person (if that person is not a parent of the child), undertake to comply with such terms and conditions as the Director may impose with respect to the membership of the Scheme.

[S 769/2005 wef 05/12/2005]

(4) Upon receiving the application , the Director shall —

(a)	determine the eligibility of the child for membership of the Scheme; and
(b)	notify the parent of his determination.

[S 769/2005 wef 05/12/2005]

(4A) When the Director has determined that a child is eligible for membership of the Scheme, the child shall be treated as a member of the Scheme.

[S 769/2005 wef 05/12/2005]

[S 324/2008 wef 01/08/2008]

(5) All contributions paid by the Government under regulation 6(2) and all withdrawals authorised under regulation 9 shall be subject to these Regulations and the terms and conditions referred to in paragraph (3)(c).

(6) The Director may, by notice in writing, amend any of the terms and conditions referred to in paragraph (3)(c).

(7) If any parent of a member or the trustee of the member’s Children Development Account contravenes any provision of these Regulations or breaches any of the terms and conditions of membership referred to in paragraph (3)(c), the Director may, without prejudice to any penalty prescribed under the Act or any other remedy the Government may have in respect of such contravention or breach, do all or any of the following:

(a)	suspend or terminate the Children Development Account of the member;
(b)	cease all further contributions payable to the member under regulation 6(2);
(c)	revoke the member’s membership of the Scheme.

Contributions payable to members

6.—(1) Any parent of a member, or any person on behalf of the parent, may, from time to time within 6 years of the date of birth of the member and after a Children Development Account is opened for the member, deposit one or more co-investment sums into the Account.

(2) Subject to paragraph (3), the Government shall contribute in respect of each member, a co-payment sum equivalent to the co-investment sum contributed by the parent of the member or any person on behalf of the parent under paragraph (1).

(3) The co-payment contribution by the Government under paragraph (2) —

(a)

shall be payable within 6 years of the birth of the member;

(b)

shall be subject to a maximum of —

(i)	$6,000 in the case of a member who is a second child; and
(ii)	$12,000 in the case of a member who is a third or fourth child; and

(c)

shall be paid into the member’s Children Development Account by the last day of the month immediately following the month of the deposit of the co-investment sum by his parent or any person on behalf of his parent under paragraph (1).

[S 424/2005 wef 01/07/2005]

(3A) Notwithstanding paragraph (3)(b), where neither the mother nor the natural father of the member is a citizen of Singapore at the time of the birth of the member, the maximum specified in paragraph (3)(b) to which the co-payment contribution by the Government under paragraph (2) is subject shall be reduced by an amount that is proportionate to the period during which the member was not a citizen of Singapore.

[S 424/2005 wef 01/07/2005]

(4) Notwithstanding sub-paragraph (c) of paragraph (3), the Government may, where it is not practicable to make a co-payment contribution within the co-payment period referred to in that sub-paragraph, pay the co-payment contribution into the Children Development Account within such other period as the Minister may determine.

[S 603/2004 wef 01/10/2004]

[S 424/2005 wef 01/07/2005]

(5) Where the status of a member of the Scheme as the second, third or fourth child is re-determined under regulation 4B(6), any co-payment contribution by the Government which has not been paid in respect of the member shall be varied accordingly based on his re-determined status.

[S 424/2005 wef 01/07/2005]

Death of member or re-determination of status

7.—(1) Notwithstanding regulation 6, if a member —

(a)	dies at any time before attaining the age of 6 years; or
(b)	upon the re-determination of his status as the second, third or fourth child under regulation 4B(6), ceases to be the second, third or fourth child,

the member shall cease to be a member of the Scheme and the Government shall cease all further co-payment contributions payable to the member under regulation 6.

(2) Where a member ceases to be a member of the Scheme under paragraph (1)(a), the moneys standing to the credit of the member’s Children Development Account shall be disposed of in accordance with section 6 of the Act and the Account shall thereafter be closed.

(3) Where a member ceases to be a member of the Scheme under paragraph (1)(b), the moneys standing to the credit of the member’s Children Development Account may be withdrawn by his parent and the Account shall thereafter be closed.

[S 603/2004 wef 01/10/2004]

Change of custody, care and control

8.—(1) Where —

(a)	the custody, care and control or care and control of the member is granted under an order of court or by agreement between the parents of the member to a parent or person other than the person who is the trustee of the Children Development Account; or
(b)	the member is adopted by any person other than the trustee of the Children Development Account,

the trustee shall, as soon as practicable after he knows of the occurrence of such event, notify the Director of such event.

[S 603/2004 wef 01/10/2004]

(2) Any trustee of a Children Development Account who, without reasonable excuse, fails to comply with paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000.

Withdrawals from Children Development Account

9.—(1) A trustee may withdraw or cause the withdrawal of any moneys standing to the credit of a member in the member’s Children Development Account at any time for —

(a)	the payment of any fee to an approved institution in connection with any educational or developmental courses provided to the member or his sibling by the approved institution;
(b)	the payment of any premium payable in respect of insurance cover under the MediShield Scheme for the member or his sibling; and
(c)	the payment to an insurer of any premium payable in respect of any integrated medical insurance plan of the member or his sibling.

[S 769/2005 wef 05/12/2005]

(2) All withdrawals made from the Children Development Account by the trustee under paragraph (1) shall —

(a)	be made by inter-bank GIRO , unless the Director otherwise permits; and
(b)	if required by the Director, be supported by such evidence as the Director may specify.

(3) Where the trustee of a member’s Children Development Account wishes to withdraw the moneys standing to the credit of the member in the Account for a purpose other than that specified in paragraph (1) or for any other reason, he shall seek the approval of the Director for withdrawal of the moneys from the Account.

(4) The Director may, before approving the withdrawal referred to in paragraph (3), require the trustee to provide such information or documents as he considers necessary to support the trustee’s request for the withdrawal.

(5) The Director may approve the withdrawal of the whole or such part of the moneys standing to the credit of a member’s Children Development Account for a purpose other than that specified in paragraph (1) or for any other reason if he is satisfied that the circumstances of the case warrants such withdrawal.

(6) A withdrawal approved by the Director under paragraph (5) shall be effected by such means and in such manner as the Director may determine.

(7) Any trustee who, without the approval of the Director under paragraph (5), makes a withdrawal from the Children Development Account for any purpose other than that specified in paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.

Refunds to Children Development Account

9A.—(1) Where any approved person is liable to make any refund of any payment which has been made out of a member’s Children Development Account, that approved person shall, within one month from the date on which an agreement is reached between the trustee of the member’s Children Development Account and the approved person as to the amount to be refunded, arrange for that refund to be credited directly into —

(a)	the member’s Children Development Account; or
(b)	such other account in the name of the member as the Director may specify, if at the time of the refund the member’s Children Development Account has been closed.

(2) Where any premium paid to an insurer in respect of an integrated medical insurance plan has been paid from moneys standing to the credit of a member in the member’s Children Development Account, and that insurer is liable to make any refund of that premium, that insurer shall, within one month from the date on which the insurer becomes liable, under the Central Provident Fund (Private Medical Insurance Scheme) Regulations 2005 (G.N. No. S 428/2005), to make the refund, arrange for that refund to be credited directly into —

(a)	the member’s Children Development Account; or
(b)	such other account in the name of the member as the Director may specify, if at the time of the refund the member’s Children Development Account has been closed.

[S 769/2005 wef 05/12/2005]

Transfer of moneys to Edusave account

10.—(1) Subject to paragraphs (2), (3) and (4), the Children Development Account of a member shall be closed and any moneys standing to the credit of the member in the Account shall be transferred to his Edusave account —

(a)

where the member is born on 1st January in the year 2002 or any subsequent year, in the year he attains the age of 6 years if —

(i)	he has an Edusave account in that year; and
(ii)	all the co-payment contributions to which he is entitled under regulation 6(2) have been credited into his Children Development Account by that year; and

(b)

where the member is born on any other date, in the year he attains the age of 7 years if —

(i)	he has an Edusave account in that year; and
(ii)	all co-payment contributions to which he is entitled under regulation 6(2) have been credited into his Children Development Account by that year.

(2) If —

(a)	the member referred to in paragraph (1)(a) does not have an Edusave account by the year he attains the age of 6 years; or
(b)	all the co-payment contributions to which he is entitled under regulation 6(2) have not been credited into his Children Development Account by that year,

his Account shall remain open until the year he attains the age of 7 years.

(3) If —

(a)	the member referred to in paragraph (1)(a) or (b) does not have an Edusave account by the year he attains the age of 7 years; or
(b)	all the co-payment contributions to which he is entitled under regulation 6(2) have not been credited into his Children Development Account by that year,

his Account shall remain open until the year he attains the age of 8 years.

(4) If the member referred to in paragraph (1)(a) or (b) does not have an Edusave Account by the year he attains the age of 8 years, his Children Development Account shall nonetheless be closed in that year and any moneys standing to the credit of the member in his Account shall be transferred to a bank account nominated by the trustee.

(5) Any moneys transferred to the bank account nominated by the trustee shall be used for the benefit of the member or his sibling.

Approved persons

11.—(1) Any person who —

(a)

operates —

(i)	a child care centre which is licensed under section 4 of the Child Care Centres Act (Cap. 37A);
(ii)	a kindergarten or special education school which is registered under section 23 of the Education Act (Cap. 87); or
(iii)	an early intervention centre; and

(b)

wishes to offer educational or developmental courses provided by such child care centre, kindergarten, special education school or early intervention centre to a member or his sibling,

may apply to the Minister for approval as an approved person in respect of that child care centre, kindergarten, special education school or early intervention centre for the purposes of the Scheme.

[S 424/2005 wef 01/07/2005]

(2) An application by the person referred to in paragraph (1) shall be made by —

(a)

where the person is an individual, that individual;

(b)

where the person is a partnership —

(i)	all the partners;
(ii)	any partner applying on behalf of the partnership; or
(iii)	any other person who satisfies the Minister that he is authorised to make the application on behalf of the partnership;

(c)

where the person is a body corporate, a director, the secretary or other principal officer of the body corporate, or any other person who satisfies the Minister that he is authorised to make the application on behalf of the body corporate; or

(d)

where the person is an unincorporated body or association of persons, any person who satisfies the Minister that he is authorised to make the application on behalf of the unincorporated body or association of persons.

(3) Every application under paragraph (1) shall be made in such form as the Minister may provide and shall be accompanied by —

(a)	particulars of the bank account into which payment out of a member’s Children Development Account for any fees payable to the approved institution is to be credited in such form as the Minister may provide; and [S 603/2004 wef 01/10/2004]
(b)	such other information or documents as may be required by the Minister.

(4) The Minister may, on the application made by a person under paragraph (1) —

(a)	refuse to approve the person as an approved person; or
(b)	approve the person as an approved person, subject to such terms and conditions as the Minister may impose.

(5) Any child care centre, kindergarten, special education school or early intervention centre in respect of which approval has been granted to a person under paragraph (4)(b) shall be known as an approved institution.

(6) The Minister shall, on approval of a person as an approved person, issue a letter of approval to the approved person.

[S 603/2004 wef 01/10/2004]

[S 324/2008 wef 01/08/2008]

(7) An approved person shall —

(a)

display the letter of approval referred to in paragraph (6) in a conspicuous place at the approved institution;

(b)

verify that —

(i)	the person who makes or wishes to make the withdrawals from a member’s Children Development Account for the payment of any fee payable to the approved institution is the trustee of the Account; and
(ii)	the child in respect of whom payment is made is the member or the member’s sibling;

(d)

notify the Minister of any change in the particulars provided in his application under paragraph (1) within 7 days of such change; and

(e)

comply with such other terms and conditions as may be imposed by the Minister under paragraph (4)(b).

[S 603/2004 wef 01/10/2004]

(8) No approved person shall display the letter of approval referred to in paragraph (6) at any child care centre, kindergarten, special education school or early intervention centre which is not an approved institution.

(9) The Minister may, without prejudice to any other penalty prescribed under the Act or any other remedy the Government may have under the Act in respect of any breach or non-compliance of these Regulations or any terms and conditions subject to which approval of an approved person is granted, revoke the approval granted in respect of any approved institution if —

(a)	the approved person has made any false or misleading statement or furnished any document which he knows to be false or misleading in his application under paragraph (1);
(b)	the approved person is dead, bankrupt, wound-up or dissolved, as the case may be;
(c)	the approved institution is no longer in operation or licensed under the Child Care Centres Act (Cap. 37A) or registered under the Education Act (Cap. 87), or the approved institution ceases to be an early intervention centre, as the case may be;
(d)	the approved person breaches any provision of these Regulations or any of the terms and conditions subject to which approval is granted; or
(e)	the Minister considers that it is no longer in the public interest for the approved person to continue to participate in the Scheme.

(10) The Minister shall cause to be published on the website of the Ministry for Community Development, Youth and Sports at http://www.babybonus.gov.sg a list of approved persons and approved institutions, including any amendment or addition thereto from time to time.

[S 603/2004 wef 01/10/2004]

(11) Any approved person who contravenes paragraph (7)(a) or (b) shall be guilty of an offence and shall be liable on conviction —

(a)	in the case of an offence under paragraph (7)(a), to a fine not exceeding $1,000; and
(b)	in the case of an offence under paragraph (7)(b), to a fine not exceeding $5,000.

Prohibition against unauthorised withdrawals of moneys

12.—(1) No approved person shall —

(a)	accept any payment out of or collude with any trustee of a Children Development Account to make withdrawals from the Account for any purpose other than that specified in regulation 9(1);
(b)	cause or make withdrawals from a Children Development Account without the approval or authorisation of the trustee of that Account; or
(c)	cause or make withdrawals from a Children Development Account after he has ceased to be an approved person.

(2) Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.

Retention of records

13.—(1) Every approved person shall maintain records in such form as the Director may determine of —

(a)	the account number of the Children Development Account out of which payment for educational or developmental courses provided by the approved institution to a member or his sibling is made;
(b)	the particulars of the member or sibling in respect of whom the payment is made;
(c)	the amount paid out of the Children Development Account;
(d)	the purpose of the payment; and
(e)	the date of the payment.

(2) The records referred to in paragraph (1) shall —

(a)

be kept for a period of 3 years from the date of the withdrawal of the member or his sibling from the approved institution; and

(b)

be kept confidential and not be inspected by any person other than —

(i)	a person authorised by the Director;
(ii)	an employee of the approved person who has been authorised in writing by the approved person to inspect such records;
(iii)	the trustee of the Children Development Account or, where the parent of the member is not the trustee, the parent; and
(iv)	any other person empowered or authorised to inspect such records under any written law for the time being in force.

Duty of officers of approved person

14.—(1) Where an approved person is a body corporate or an unincorporated body or association of persons, every director, manager, secretary or other similar officer of the body corporate or unincorporated body or association of persons shall exercise reasonable diligence to ensure that the approved person complies with these Regulations and the terms and conditions imposed under regulation 11(4)(b).

(2) Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.

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