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
- Type: Subsidiary Legislation (SL)
- Authorising Act: Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
- Enacting power: Section 29B of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
- Commencement: 31 January 2022
- Key subject matter: Valuation methodology and reporting for determining amounts relevant to withdrawals from the DI Fund in support of resolution measures
- Key provisions (as extracted): Regulations 1–4
- Noted amendment: Amended by S 402/2024 (effective 10 May 2024)
- Current version status: Current version as at 27 March 2026 (per provided extract)
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”) set out the technical rules for how certain amounts are to be determined when the Deposit Insurance (“DI”) Fund is used to support resolution measures affecting a deposit-taking institution (“DI Scheme member”). In practical terms, the Regulations focus on valuation: they prescribe how an independent valuer must assess what the relevant agency would have been repaid from the DI Scheme member’s assets, had the institution not been subject to resolution.
Singapore’s deposit insurance framework is designed to protect eligible depositors and policy owners, while also enabling the financial regulator to manage failing institutions through resolution tools. When resolution measures are used, the DI Fund may be withdrawn to support those measures. However, to ensure fairness, transparency, and proper accounting of the DI Fund’s role, the law requires a counterfactual valuation—i.e., an estimate of what would have happened to the agency’s recoveries under a non-resolution scenario.
These Regulations therefore operationalise specific statutory provisions in the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (“DIPOPSA”). They do not themselves create the resolution regime; rather, they provide the valuation mechanics needed for the withdrawal and related repayment calculations referenced in section 29A(2) of DIPOPSA.
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 when assessing whether valuation reports and related processes were required to follow the Regulations from that date.
Regulation 2 (Determination of amounts for purposes of section 29A(2) of Act) provides the core procedural authority. It states that, for the purposes of section 29A(2) of DIPOPSA, the Authority may appoint an independent valuer to conduct a valuation in accordance with regulation 3. The valuation’s purpose is 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.
In other words, the independent valuer is not assessing the institution’s actual value under resolution. Instead, the valuer is tasked with determining a specific counterfactual recovery amount—what the Agency would have received if the statutory repayment mechanism under section 27 applied in a non-resolution scenario.
Regulation 3 (Principles for conducting valuation) is the most legally significant part of the Regulations because it constrains the valuer’s assumptions and methodology. It requires the independent valuer to conduct the valuation according to specified principles, and also allows the Authority to issue additional valuation principles by written notice.
First: the valuation must not take into account any financial support or assistance provided by the Government, certain public bodies, or public officers—except for financial support provided in the ordinary course of business. This principle prevents the valuation from being inflated by extraordinary public interventions that are not reflective of the institution’s stand-alone economic position.
Second: the valuation must be made on the assumption that the DI Scheme member is not subject to resolution measures under specified divisions of Part 8 of the Financial Services and Markets Act 2022 (Division 2, 4, 5, 6 or 9). This is the counterfactual anchor: the valuer must “turn off” resolution measures for valuation purposes.
Third: the valuation must be made on the assumption that the DI Scheme member is wound up under Parts 8 and 9 of the Insolvency, Restructuring and Dissolution Act 2018 or by a liquidator appointed under section 250 of that Act. This provides a concrete legal pathway for the counterfactual scenario. Practically, it means the valuation should reflect liquidation/winding-up outcomes under the relevant insolvency framework, rather than any resolution outcome.
For practitioners, these assumptions are critical when reviewing valuation reports for legal compliance. They also affect how valuers model asset recoveries, priority distributions, and timing—because the assumed legal process is liquidation under the Insolvency, Restructuring and Dissolution Act 2018.
Regulation 4 (Submission of valuation report) sets out the content requirements for the independent valuer’s report to the Authority. The report must specify:
- (a) Assessment of amounts: the independent valuer’s assessment of the amounts the Agency would have been repaid from or out of the DI Scheme member’s assets under section 27 of DIPOPSA.
- (b) Methodologies and assumptions: an explanation of the key methodologies and assumptions adopted, the reasons for adopting them, and the sensitivity of the assessment to those methodologies and assumptions.
- (c) Uncertainty: any source of uncertainty inherent in the valuation.
This reporting structure is designed to support regulatory decision-making and, importantly, to create an evidentiary record. The sensitivity analysis and identification of uncertainty are particularly useful for governance and potential disputes, because they show how robust the valuation is to changes in key inputs.
How Is This Legislation Structured?
The DI Fund Withdrawal Regulations are concise and structured around four regulations:
Regulation 1 covers citation and commencement. Regulation 2 addresses the Authority’s power to appoint an independent valuer and the valuation’s purpose (determining amounts for section 29A(2) of DIPOPSA). Regulation 3 sets out mandatory valuation principles and permitted additional principles via written notice. Regulation 4 prescribes the required contents of the valuation report submitted to the Authority.
Notably, the Regulations do not contain detailed procedural steps for appointment, timelines, or dispute resolution mechanisms in the extract provided. Instead, they focus on the valuation framework and deliverables—suggesting that the operational process is likely handled through the Authority’s administrative arrangements and the broader DIPOPSA scheme.
Who Does This Legislation Apply To?
In scope are the Authority (as defined under DIPOPSA), the independent valuer appointed by the Authority, and the DI Scheme member whose assets are relevant to the counterfactual valuation. While depositors are the ultimate beneficiaries of deposit insurance, the Regulations are not written as depositor-facing rules; they are regulatory and valuation rules.
For DI Scheme members and their advisers, the Regulations matter indirectly. When resolution measures are contemplated or implemented, the valuation assumptions—especially the exclusion of resolution measures and the assumption of winding up under the Insolvency, Restructuring and Dissolution Act 2018—will influence how the DI Fund’s withdrawal and related calculations are justified and documented.
Why Is This Legislation Important?
These Regulations are important because they operationalise the interface between deposit insurance funding and bank resolution. In resolution contexts, regulators must balance multiple objectives: protecting insured depositors, maintaining financial stability, and ensuring that the use of public or quasi-public funds is properly accounted for. The valuation principles in regulation 3 help ensure that the DI Fund’s withdrawal is supported by a disciplined counterfactual analysis rather than by hindsight or resolution-influenced outcomes.
From a practitioner’s perspective, the Regulations provide a clear compliance checklist for independent valuers and a review framework for legal counsel. Key legal constraints include: (i) excluding extraordinary government/public support (except ordinary-course support), (ii) assuming no resolution measures under specified provisions of the Financial Services and Markets Act 2022, and (iii) assuming winding up under specified parts of the Insolvency, Restructuring and Dissolution Act 2018. These constraints are not merely “guidance”; they are mandatory principles that shape the valuation’s legal validity.
Further, regulation 4’s emphasis on methodologies, sensitivity, and uncertainty supports accountability and auditability. If a valuation becomes contentious—whether in internal governance, regulatory review, or potential legal proceedings—these report requirements help demonstrate that the valuation was conducted transparently and with an articulated basis for key assumptions.
Related Legislation
- Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (DIPOPSA) — including sections 27, 29A(2), and 29B
- Financial Services and Markets Act 2022 — Part 8 (resolution measures), including the referenced divisions
- Insolvency, Restructuring and Dissolution Act 2018 — Parts 8 and 9 (winding up) and section 250 (liquidator appointment)
- Dissolution Act 2018 — referenced in the provided metadata (contextual relevance to dissolution framework)
- Markets Act 2022 — referenced in the provided metadata (contextual relevance to financial markets framework)
- Protection Schemes Act 2011 — referenced in the provided metadata (contextual relevance to protection schemes framework)
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.