PART III
FINANCIAL REQUIREMENT BEFORE
LICENSING, FUND SOLVENCY
REQUIREMENT AND CAPITAL
ADEQUACY REQUIREMENT
[S 238/2013 wef 18/04/2013]
Paid-up capital requirement
6.  For the purposes of section 8(3)(b) of the Act, the Authority shall not license an applicant as an SPRV unless the applicant has a paid-up ordinary share capital (or its equivalent recognised by the Authority as applicable to the applicant under the laws of the country or territory in which the applicant is incorporated, formed or established) of not less than $20,000.
[S 238/2013 wef 18/04/2013]
Fund solvency and capital adequacy requirements
7.—(1)  For the purposes of section 18(1)(a) of the Act, the fund solvency requirement in respect of an insurance fund established and maintained by an SPRV under the Act shall at all times be such that the assets of the fund are not less than the liabilities of the fund.
(2)  For the purposes of section 18(1)(b) of the Act, the capital adequacy requirement of an SPRV shall at all times be such that the assets of the SPRV are not less than the liabilities of the SPRV.
(3)  In computing the fund solvency requirement of an insurance fund and the capital adequacy requirement under paragraphs (1) and (2), respectively, an SPRV shall not include any exchange translation reserves resulting from the translation of financial statements from a non-Singapore dollar denominated functional currency to the presentation currency in Singapore dollar.
(4)  An SPRV shall immediately notify the Authority when the SPRV becomes aware that it has failed, or is likely to fail, to comply with paragraph (1) or (2).
Exemption from Insurance (Valuation and Capital) Regulations 2004
8.  An SPRV shall be exempt from regulations 3 and 4 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).