Statute Details
- Title: Deposit Insurance and Policy Owners’ Protection Schemes (Withdrawal from DI Fund in Support of Resolution Measures) Regulations 2022
- Act Code: DIPOPSA2011-S59-2022
- Legislation Type: Subsidiary legislation (SL)
- Enacting Formula / Power Source: Made under section 29B of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (“DIPOPSA 2011”)
- Commencement: 31 January 2022
- Key Provisions (as extracted): Regulations 1–4
- Status / Versioning: Current version as at 27 March 2026; amendment noted: S 402/2024 (effective 10 May 2024)
- Primary Regulatory Subject: Valuation mechanics for determining amounts relevant to section 29A(2) of DIPOPSA 2011
What Is This Legislation About?
The Deposit Insurance and Policy Owners’ Protection Schemes (Withdrawal from DI Fund in Support of Resolution Measures) Regulations 2022 (“DI Fund Withdrawal Regulations”) are technical rules that govern how certain valuations must be carried out when the Deposit Insurance and Policy Owners’ Protection Schemes framework is used in the context of bank or financial institution resolution.
In plain language, the legislation addresses a specific question: when the relevant authority withdraws money from the Deposit Insurance (DI) Fund to support resolution measures, how should the system calculate the “amounts” that would otherwise have been repaid to the Agency from the assets of a distressed DI Scheme member? The Regulations do not themselves create the resolution regime; rather, they provide the valuation methodology and procedural requirements needed to support decisions under DIPOPSA 2011.
The Regulations therefore sit at the intersection of (i) deposit insurance and policy owners’ protection, (ii) resolution planning and execution under the Financial Services and Markets Act 2022 (“FSMA 2022”), and (iii) insolvency outcomes under the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA 2018”). Their core function is to ensure that valuations used for these cross-framework calculations are consistent, independent, and insulated from assumptions that would distort the comparison between resolution and non-resolution outcomes.
What Are the Key Provisions?
Regulation 1 (Citation and commencement) is straightforward. It confirms the name of the Regulations and that they come into operation on 31 January 2022. For practitioners, this matters because it fixes the temporal scope for when the valuation rules apply to relevant DI Fund withdrawal and resolution-related calculations.
Regulation 2 (Determination of amounts for purposes of section 29A(2) of Act) is the gateway provision. It authorises the Authority (Monetary Authority of Singapore, “MAS”) to appoint an independent valuer to conduct a valuation, in accordance with Regulation 3, to determine the amounts that the Agency would have been repaid from or out of the assets of the DI Scheme member under section 27 of the Act.
Two practical points flow from this. First, the valuation is not performed by the Authority directly; it is performed by an independent valuer, which is intended to support credibility and reduce conflicts of interest. Second, the valuation is tied to a specific statutory counterfactual: what the Agency would have received under section 27 (i.e., the repayment position that would have applied absent the resolution-support withdrawal context).
Regulation 3 (Principles for conducting valuation) sets out the substantive valuation rules. It requires the independent valuer to follow the listed principles and any additional principles MAS may specify by written notice. The Regulations include three key principles (as reflected in the extract):
(a) Exclusion of certain government or public support (subject to an ordinary-course carve-out). The valuation must not take into account any financial support or assistance provided to the DI Scheme member by the Government, a public body established for public purposes, or a public officer—except for financial support provided in the ordinary course of business. This principle is designed to prevent the valuation from being inflated by extraordinary public interventions that are not reflective of the underlying asset position.
(b) Resolution-measure “neutrality” (assumption that the member is not subject to specified resolution measures). The valuation must be made on the assumption that the DI Scheme member is not the subject of any resolution measure under specified divisions of Part 8 of FSMA 2022 (Division 2, 4, 5, 6 or 9). This is a counterfactual assumption: the valuation is meant to represent the position if resolution measures of those types were not applied. The effect is to ensure that the valuation used for DI Fund withdrawal calculations does not double-count benefits or distortions created by the resolution process itself.
(c) Insolvency/winding-up assumption (wound up under IRDA 2018 or by an appointed liquidator). The valuation must assume the DI Scheme member is wound up under Parts 8 and 9 of IRDA 2018 or by a liquidator appointed under section 250 of that Act. This anchors the valuation to a defined legal pathway for liquidation, ensuring that the valuation reflects a consistent insolvency framework rather than an open-ended “what might happen” scenario.
Regulation 4 (Submission of valuation report) imposes reporting obligations on the independent valuer. The independent valuer must submit a valuation report to MAS specifying:
- (a) the valuer’s assessment of the amounts that the Agency would have been repaid from or out of the DI Scheme member’s assets under section 27 of the Act;
- (b) an explanation of the key methodologies and assumptions used, the reasons for adopting them, and the sensitivity of the assessment to those methodologies and assumptions; and
- (c) any source of uncertainty inherent in the valuation.
For legal practitioners, Regulation 4 is particularly important because it creates an evidentiary record. If the valuation is later challenged—whether in administrative review contexts, in disputes involving affected parties, or in litigation concerning resolution outcomes—the report’s methodology, assumptions, sensitivity analysis, and uncertainties will be central to assessing whether the valuation was conducted properly and transparently.
How Is This Legislation Structured?
The Regulations are structured as a short instrument with four regulations in the extract provided:
- Regulation 1 sets the citation and commencement.
- Regulation 2 provides the mechanism for appointing an independent valuer and links the valuation to section 29A(2) and section 27 of DIPOPSA 2011.
- Regulation 3 provides the valuation principles (exclusion of certain support, resolution-measure neutrality, and insolvency/winding-up assumptions).
- Regulation 4 sets out the content requirements for the valuation report submitted to MAS.
Although the instrument is brief, it is legally significant because it operationalises cross-references to the main DIPOPSA 2011 provisions and to other major financial stability statutes (FSMA 2022 and IRDA 2018).
Who Does This Legislation Apply To?
The Regulations primarily apply to the Authority (MAS) and to any independent valuer appointed by MAS under Regulation 2. The DI Scheme member is not directly regulated by these procedural rules; rather, the DI Scheme member’s financial position is the subject matter of the valuation that the independent valuer must prepare.
In practice, the Regulations will be relevant to stakeholders involved in resolution and deposit insurance outcomes—such as the Agency responsible for deposit insurance/policy owner protection functions, DI Scheme members facing resolution, and parties who may be affected by the calculation of amounts relevant to DI Fund withdrawals. The counterfactual assumptions in Regulation 3 (no specified resolution measures; winding up under IRDA 2018) mean that the valuation will be framed in a way that can affect how resolution-support decisions are justified and how repayment expectations are assessed.
Why Is This Legislation Important?
Although the DI Fund Withdrawal Regulations are technical, they play a critical role in maintaining the integrity of the deposit insurance and resolution framework. Resolution decisions often require comparisons between different outcomes: what would have happened under insolvency versus what happens under resolution. If valuations were conducted inconsistently—or if they improperly incorporated effects of resolution measures or extraordinary public support—the resulting calculations could undermine fairness, accountability, and confidence in the system.
The Regulations promote independence (through the appointment of an independent valuer), consistency (through mandatory valuation principles and defined legal assumptions), and transparency (through reporting requirements covering methodologies, assumptions, sensitivity, and uncertainty). These features are particularly important where the valuation is used to support withdrawals from a fund in connection with resolution measures—an area where stakeholders may scrutinise the basis for decisions.
From an enforcement and compliance perspective, the Regulations also create a clear compliance pathway for valuers: they must follow the specified principles, and they must produce a report with sufficient detail to allow MAS to rely on the valuation. For practitioners advising valuers or affected parties, the Regulations indicate what will likely be expected in any valuation documentation and what issues may be probed if the valuation is challenged.
Related Legislation
- Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (including sections 27, 29A and 29B)
- Financial Services and Markets Act 2022 (Part 8, including the referenced divisions of resolution measures)
- Insolvency, Restructuring and Dissolution Act 2018 (Parts 8 and 9; section 250)
- Dissolution Act 2018 (listed in the statute metadata as related)
- Markets Act 2022 (listed in the statute metadata as related)
Source Documents
This article provides an overview of the Deposit Insurance and Policy Owners’ Protection Schemes (Withdrawal from DI Fund in Support of Resolution Measures) Regulations 2022 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.