Central Provident Fund (Investment Schemes) Regulations 1996

No. S 543

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Investment Schemes) Regulations 1996

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

PART I

PRELIMINARY

Citation and commencement

1. These Regulations may be cited as the Central Provident Fund (Investment Schemes) Regulations 1996 and shall come into operation on 1st January 1997.

Definitions

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

“accounting year” means a period of 12 months commencing on 1st October 1993 and ending 30th September 1994 and subsequently for a period of 12 months ending on 30th September of each year or such other period as the Board may determine;

“approved bank” means any bank appointed by the Board for the purposes of these Regulations;

“approved corporation” means any corporation approved by the Minister for the purposes of these Regulations;

“available amount” means such amount of the moneys standing to the credit of a member in the Fund, including any balance in his CPF Investment Account, which the Board may, in accordance with any direction by the Minister, permit the member to withdraw for the purchase of gold or securities under Part II or III;

“bank” has the same meaning as in the Banking Act [Cap. 19];

“company” means a company incorporated under the Companies Act [Cap. 50] or any previous corresponding law;

“corporation” means —

(a)	any company which is incorporated in Singapore and wholly or partly owned by the Government, or any subsidiary of such a company which is incorporated in Singapore; and
(b)	any subsidiary of a statutory board which is incorporated in Singapore;

“CPF contributions” means the moneys standing to the credit of a member in the Fund;

“CPF Investment Account” means an account opened by a member with an approved bank from which money may be withdrawn for the purchase of gold or securities;

“endowment insurance policy” means an endowment insurance policy approved by the Board;

“fixed deposit account” means a fixed deposit account maintained by a member with an approved bank;

“fund management account” means an account maintained by a member with a fund manager approved by the Board;

“gold” includes gold bars, gold coins, gold certificates, gold savings accounts and gold of at least 999 fineness held by an approved bank on behalf of its customers;

“insurer” means any person registered under the Insurance Act [Cap. 142] to carry on insurance business in Singapore;

“net realised profit” means the net realised profit a member may withdraw in accordance with regulation 24;

“securities” means —

(a)	fully paid-up ordinary shares and loan stocks or bonds of companies on the list of companies maintained by the Board under regulation 4;
(b)	fully paid-up ordinary shares and loan stocks or bonds of companies quoted on the Stock Exchange of Singapore which the Minister may approve from time to time for the purposes of these Regulations;
(c)	units in any unit trust scheme which the Minister may approve from time to time for the purposes of these Regulations;
(d)	bonds issued by the Government;
(e)	receipts of fixed deposit accounts;
(f)	deposits in fund management accounts;
(g)	endowment insurance policies;
(h)	shares in an approved corporation; and
(i)	fully paid-up preference shares of companies quoted on the Stock Exchange of Singapore;

“SESDAQ” means the Stock Exchange of Singapore Dealing and Automated Quotation System;

“shares” means any securities other than units in a unit trust scheme, fixed deposit accounts, endowment insurance policies, fund management accounts, loan stocks or bonds;

“shares in an approved corporation” means such shares in an approved corporation as may be approved by the Minister for the purposes of Part III;

“Share Profit Account” means a Share Profit Account maintained by the Board for a member for the purposes of these Regulations;

“Stock Exchange of Singapore” includes SESDAQ;

“subsidiary”, in relation to a company, shall have the same meaning as in section 5 of the Companies Act [Cap. 50], whether or not, in the case of a statutory board, it is a corporation for the purposes of that Act;

“unit”, in relation to a unit trust scheme, means a right or interest, whether described as a unit, a sub-unit or otherwise, which may be acquired under the scheme;

“unit trust scheme” has the same meaning as in the Securities Industry Act.

(2) No member shall purchase or sell any shares under these Regulations except through the Stock Exchange of Singapore or through such person as the Board thinks fit.

(3) No member shall purchase or sell any unit in any unit trust scheme under these Regulations except through the manager of the unit trust scheme.

Appointment of banks

3. The Board may from time to time appoint any bank for the purpose of any investment scheme introduced by the Board under these Regulations to allow members to use their CPF contributions to invest in gold or securities in accordance with these Regulations.

List of companies

4.—(1) The Board shall maintain a list of companies that satisfy the following conditions:

(a)	the company is incorporated in Singapore and is listed on the Stock Exchange of Singapore; and
(b)	the company complies with paragraph 1 of Part IV of the First Schedule to the Trustees Act [Cap. 337].

(2) A company that satisfies the conditions of paragraph (1) may apply to the Board for inclusion into the list maintained under that paragraph.

(3) A company that no longer satisfies the conditions of paragraph (1) shall be deleted from the list maintained under that paragraph.

(4) The Board shall review the list maintained under paragraph (1) once every quarter of the year.

No withdrawal by member below age of 21 years

5. No member who is below the age of 21 years shall be permitted to make any withdrawal under these Regulations.

Undischarged bankrupts

6. Subject to regulation 30, no member who is an undischarged bankrupt shall be permitted to make any withdrawal for the purpose of investment under these Regulations.

Procedure prior to application under Part II

7.—(1) Before a member makes an application for the withdrawal of moneys under Part II, he shall first open a CPF Investment Account with an approved bank.

(2) Moneys in the CPF Investment Account shall bear interest at such rate as may be determined from time to time by the approved bank in which the account is opened.

(3) No member shall be entitled to operate more than one CPF Investment Account at any one time.

Made this 23rd day of December 1996.

MOSES LEE KIM POO

Permanent Secretary,
Ministry of Labour,
Singapore.

[ML. S2.4.3/80; AG/SL/19/95/8]

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

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