Offences and Penalties under Part 11 of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011: An In-Depth Analysis
Part 11 of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (the “Act”) sets out the offences, penalties, and enforcement mechanisms designed to uphold the integrity of Singapore’s deposit insurance and policy owners’ protection frameworks. This Part is crucial in ensuring compliance by individuals and corporate entities, deterring misconduct, and providing clear legal recourse for breaches. This article examines the key provisions, definitions, penalties, and cross-references within Part 11, explaining their purposes and legal implications.
Section 66: Offences Committed by Corporate and Other Entities
Section 66 establishes the principle of vicarious liability for offences committed by bodies corporate, partnerships, limited liability partnerships, and unincorporated associations. It holds not only the entity liable but also the officers or members who consented to, connived in, or were negligent in preventing the offence.
"Where an offence under this Act committed by a body corporate is proved—(a) to have been committed with the consent or connivance of an officer; or (b) to be attributable to any act or default on the officer’s part, the officer as well as the body corporate shall be guilty of the offence and shall be liable to be proceeded against and punished accordingly." — Section 66(1)
Verify Section 66 in source document →
Purpose: This provision exists to prevent corporate entities from evading liability by hiding behind the corporate veil. It ensures that individuals in positions of authority who facilitate or fail to prevent offences are held accountable, thereby promoting responsible governance and oversight.
Section 66(6) further clarifies key definitions:
"In this section— “body corporate” and “partnership” exclude a limited liability partnership within the meaning of the Limited Liability Partnerships Act 2005; “officer”— (a) in relation to a body corporate, means any director, member of the committee of management, chief executive officer, manager, secretary or other similar officer of the body corporate and includes any person purporting to act in any such capacity; and (b) in relation to an unincorporated association (other than a partnership), means the president, the secretary, or any member of the committee of the unincorporated association, or any person holding a position analogous to that of president, secretary or member of such a committee and includes any person purporting to act in any such capacity; “partner” includes a person purporting to act as a partner." — Section 66(6)
Purpose: These definitions ensure clarity on who may be held liable under Section 66, preventing ambiguity about the scope of responsibility within various organisational structures.
Section 67: Prohibition on False or Misleading Statements
Section 67 prohibits any person from knowingly or recklessly making false or misleading statements concerning membership in the Deposit Insurance (DI) Scheme or Policy Owners’ Protection (PPF) Scheme, or the status of deposits and policies as insured.
"No person may, knowingly or recklessly, make a false or misleading statement as to whether or not—(a) any person is a DI Scheme member; (b) any person is a PPF Scheme member; (c) any deposit or product is an insured deposit; or (d) any policy is an insured policy." — Section 67(1)
Verify Section 67 in source document →
Penalties for contravention are severe:
"Any person who contravenes subsection (1) shall, even though a contract does not come into being, be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction." — Section 67(2)
Verify Section 67 in source document →
Purpose: This provision protects consumers and the public from deceptive practices that could mislead them about the protection afforded to their deposits or policies. It maintains trust in the financial system and the credibility of the DI and PPF schemes.
Section 68: Liability of Officers for Compliance and Accuracy
Section 68 targets officers of full banks, finance companies, or relevant insurers, imposing a duty to take all reasonable steps to ensure compliance with the Act and the accuracy of statements submitted to the Authority or Agency.
"Any officer of a full bank, finance company or relevant insurer who fails to take all reasonable steps to secure—(a) compliance by the full bank, finance company or relevant insurer (as the case may be) with any provision of this Act; or (b) the accuracy and correctness of any statement submitted to the Authority, the Agency or such other person as may be required under this Act, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both." — Section 68(1)
Verify Section 68 in source document →
However, imprisonment is only applicable if the offence was committed wilfully:
"A person shall not be sentenced to imprisonment for any offence under subsection (1) unless, in the opinion of the court, he or she committed the offence wilfully." — Section 68(3)
Verify Section 68 in source document →
Purpose: This provision enforces accountability at the senior management level, ensuring that officers actively oversee compliance and the integrity of information submitted under the Act. It deters negligence and wilful misconduct that could undermine the protection schemes.
Section 69: Duty Not to Provide False or Misleading Information
Section 69 imposes a duty on any person providing information to the Authority or Agency to exercise due care to avoid false or misleading information.
"Any person who provides the Authority or the Agency with any information under or for the purposes of any provision of this Act must use due care to ensure that the information is not false or misleading in any material particular." — Section 69(1)
Verify Section 69 in source document →
Failure to comply attracts penalties similar to those in Section 68:
"Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both." — Section 69(3)
Verify Section 69 in source document →
Purpose: This provision ensures the Authority and Agency receive reliable information necessary for effective regulation and enforcement. It safeguards the regulatory process from being compromised by inaccurate data.
Section 70: General Penalty for Offences Without Express Penalties
Section 70 provides a default penalty framework for offences under the Act where no specific penalty is prescribed.
"Any person who is guilty of an offence under this Act for which no penalty is expressly provided shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction." — Section 70
Verify Section 70 in source document →
Purpose: This provision ensures that all breaches of the Act are punishable, preventing gaps in enforcement and reinforcing the Act’s overall deterrent effect.
Section 71: Enhanced Penalties for Corporations
Section 71 allows courts to impose fines on corporations up to twice the maximum amount prescribed for the offence.
"Where a corporation or body corporate is convicted of an offence under this Act, the penalty that the court may impose is a fine not exceeding 2 times the maximum amount that the court could, but for this subsection, impose as a fine for that offence." — Section 71(1)
Verify Section 71 in source document →
Purpose: This provision recognises the greater capacity of corporations to cause harm and the need for stronger financial deterrents against corporate misconduct.
Section 72: Jurisdiction of the District Court
Section 72 clarifies that the District Court has jurisdiction to try offences under the Act and can impose the full range of penalties.
"Despite any provision to the contrary in the Criminal Procedure Code 2010, a District Court has jurisdiction to try any offence under this Act and has power to impose the full penalty or punishment in respect of the offence." — Section 72
Verify Section 72 in source document →
Purpose: This provision streamlines enforcement by empowering the District Court to handle these offences, facilitating timely and effective prosecution.
Section 73: Compounding of Offences
Section 73 empowers the Authority to compound certain offences by collecting a sum of money instead of pursuing prosecution.
"The Authority may compound any offence under this Act that is prescribed as a compoundable offence by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine that is prescribed for the offence." — Section 73(1)
Verify Section 73 in source document →
Purpose: This mechanism allows for efficient resolution of minor offences, reducing the burden on courts and enabling quicker enforcement outcomes.
Cross-References to Other Legislation
Part 11 also cross-references other statutes to clarify definitions and procedural matters:
- Limited Liability Partnerships Act 2005: Section 66(6) excludes limited liability partnerships from the definitions of “body corporate” and “partnership” for the purposes of this Part, recognising their distinct legal status.
- Criminal Procedure Code 2010: Section 72 overrides any conflicting provisions to vest jurisdiction in the District Court for offences under the Act.
"“body corporate” and “partnership” exclude a limited liability partnership within the meaning of the Limited Liability Partnerships Act 2005;" — Section 66(6)
Verify Section 66 in source document →
"Despite any provision to the contrary in the Criminal Procedure Code 2010, a District Court has jurisdiction to try any offence under this Act and has power to impose the full penalty or punishment in respect of the offence." — Section 72
Verify Section 72 in source document →
Conclusion
Part 11 of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 establishes a comprehensive legal framework to deter, penalise, and remedy offences related to the administration and representation of the DI and PPF schemes. By assigning liability to both individuals and corporate entities, prescribing stringent penalties, and enabling efficient enforcement mechanisms, the Act safeguards the integrity of Singapore’s financial protection schemes. The clear definitions and cross-references further enhance legal certainty and enforcement efficacy.
Sections Covered in This Analysis
- Section 66: Offences by bodies corporate, partnerships, and unincorporated associations
- Section 67: False or misleading statements regarding DI and PPF schemes
- Section 68: Liability of officers for compliance and accuracy
- Section 69: Duty not to provide false or misleading information
- Section 70: General penalty for offences without express penalties
- Section 71: Penalty for corporations
- Section 72: Jurisdiction of District Court
- Section 73: Compounding of offences
Source Documents
For the authoritative text, consult SSO.