Please note that ‘Discretionary fund’ means any fund managed in-house by the manager, where the manager has substantial input in the investment management process or investment decision-making authority; ‘Excluded investment product’ has the same significance as that given in the Notice on Recommendations on Investment Products.

‘Hedging’ refers to the use of a combination of trades on transferable securities, money market instruments, units in other sub-funds, collective investment schemes or financial derivatives concluded solely for the purpose of offsetting the risks associated with positions taken by other transferable securities, money market instruments, units in other sub-funds, collective investment schemes, etc.

Please note that the ‘Investment-linked policy sub-fund’ (‘ILP sub-fund’) refers to each separate sub-fund within an ILP to which a policyholder may choose to allocate his or her premiums under the ILP.“Effective controller”, in relation to a trustee, means the natural person who ultimately owns or controls the settlor or trustee.

Please note that the duty of the manager is to be an insurer, if the insurer is fully or partly managing the ILP sub-fund itself, or a fund manager other than the insurer if the fund manager is fully managing the ILP sub-fund or the underlying collective investment scheme(s) in which the ILP sub-fund is fully invested.

‘Soft dollars’ refers to arrangements under which products or services are obtained from or through a broker in exchange for the direction by the manager of transactions to the broker in return for the broker’s transaction manager’s guidance. Soft dollars include consulting and consultancy services, economic and political analysis, portfolio analysis, market analysis, data and quotation services, and hardware and software used by managers with or in support of their investment processes.

Please acknowledge that the ‘Structured products’ means any product tailor-made for an ILP sub-fund such that the issuer(s) of the securities stands ready to unwind the products at prevailing market prices and rates in order to enable the ILP sub-fund to accept redemptions on each of the trading days.

Please note that the insurer shall appoint an external auditor to carry out an annual audit in compliance with one of the following methods:
(a) audit on the financial statements of each ILP sub-fund(‘first method audit’); or,
(b) internal control audit and the processes of the ILP sub-funds (‘the second method audit’).

Please learn that after the adjustment to the audit by the second form, the insurer shall not, make any change to the audit process without the Authority’s approval. Insurers can make any change to the audit method only with the approval of the Authority, upon the change to the audit by way of the second method. The Authority can, subject to such conditions as the Authority can deem fit to impose on the insurer, grant approval for any adjustment to the audit method and the insurer shall comply with the conditions imposed.

Please note that the Authority can, subject to such conditions as the Authority can deem fit to impose on the insurer, grant approval for any improvement in the audit method and the insurer shall comply with the conditions imposed. If the audit is carried out in compliance with the second method, the insurer shall ensure that the inaugural audit is completed not later than 3 months after the ILP sub-funds year endr of the ILP sub-fund.

It is stated that where the immediate financial year-end of the insurer after the completion of the inaugural audit is not more than 12 months from the date of the ILP sub-funds year-end, the insurer shall ensure that the audit by way of the second method is carried out by the following financial year-end of the insurer. The audit certificate shall be added in the Appendix to the list and definition of liabilities.

Where an audit by way of the second method is carried out, the insurer shall ensure that an audit report is prepared which includes the following objective/s: (a) outstanding unit holdings of the insurer’s ILP sub-funds are properly maintained, with subscriptions (including top-ups), (b) redemption (including partial redemption) and swapping of units of ILP sub-funds properly accounted for in the correct time. (c) units of the ILP sub-funds are properly priced in the correct period and allocated to the correct ILP sub-funds (d) existing assets and liabilities are properly accrued for each ILP sub-fund.

It is stated that for each sub-fund of the ILP that is terminated or matured, the insurer shall appoint an external auditor to prepare an audit certificate certifying that it has not been informed by the auditor during the audit that the insurer has not completed all the assets of the sub-fund of the ILP at the date of termination or maturity of the policy.

It is to be acknowledged that the list and description of liabilities, that have not been settled but have been accrued to the ILP sub-fund and excluded from the final distribution, shall be attached in the Appendix to the audit certificate.

It is to be learned that about the completion time of the audit certificate, the insurer shall ensure that it is completed within 6 months after the termination or maturity of the ILP sub-fund after the ILP sub-funds termination or maturity. The insurer shall give to the Authority a copy of the audit certificate for the ILP sub-funds which have been terminated or matured within 30 days of the completion of the audit

Please note that the insurer shall hold a copy of the ILP sub-funds audit certificate terminated or matured for a period of five years, from the date of termination or maturity of the ILP sub-funds. The insurer shall, within 30 days of the policyholder’s request, make an audit certificate available to the policyholder if that request is made within 5 years of the date of termination or maturity of the ILP sub-funds.

Please note that for any ILP issued on or after 8 October 2021, if such fees or charges are (a) deducted from premiums charged on the ILP; or (b) deducted by the cancellation of units in an ILP sub-fund, the insurer shall consolidate fees and charges other than insurance coverage charges imposed in advance (e.g. when the policyholder purchases the ILP and on top-ups).

It is to be acknowledged that that “payee” implies an individual who is the planning beneficiary of cash which has been the subject of an installment transaction; whereas “payer” implies an individual who hold a payment account and initiates, or consents to the initiation of, a payment order from that payment account.

It is stated that an “effective controller”, in relation to a settlor or a trustee, means the natural person who ultimately owns or controls the settlor or trustee, or the natural person on whose behalf business contact is established or maintained, and includes any person who exercises ultimate effective control over a legal person or legal arrangement.

It is to be acknowledged that the group that consists of a legal person or legal arrangement exercising control and coordinating functions over the rest of the group and its branches and subsidiaries, which are financial institutions as specified in the MAS Act or equivalent financial institutions outside of Singapore.

Please learn that a “government entity” signifies a government of a country or jurisdiction, or an agency specially established by such a government through written law. Whereas “legal person” means an entity other than a natural person that can establish a permanent relationship as a trust relevant party with a financial institution or otherwise own property.

It is to be acknowledged that in Singapore, only a bank incorporated in Singapore can issue covered bonds. A bank incorporated outside Singapore through its branch in Singapore must not issue any covered bonds.

Please note that it is the account holder’s duty to enable transaction notification alerts on any device used to receive transaction notifications from the responsible FI, to pick to receive all exchange notices for all active exchanges of (any sum) made from the account holder’s ensured account and to monitor the transaction notifications sent to the account contact.

It is stated that ‘MAS Bills’ are Any securities issued by the Monetary Authority of Singapore under the Monetary Authority of Singapore Act; whereas ‘Memorandum of Compliance’ means a memorandum prepared by a bank setting out how each of the conditions of the Notice has been complied with.

“Singapore Government Securities” means any security or equivalent instrument issued under the Government Securities Act and any Treasury bill or equivalent instrument issued under the Local Treasury Bills Act, and “SPV” means special purposes vehicle incorporated or established in Singapore for the primary purpose of issuing covered bonds or holding a cover pool in Singapore.

Please note that a bank incorporated in Singapore which issues covered bonds must use its own assets only and not those of other entities in its banking group to form a cover pool and must ensure that each of its subsidiaries intending to issue covered bonds uses the subsidiary’s own assets only.

At least one month prior the issuance of covered bonds, a bank incorporated in Singapore must furnish the Authority with written information on its covered bond policy, including the type of assets that will be included in the covered bond pool under the covered bond program and signed off by its board and senior management of the covered bond program.

For residential mortgage loans included in the cover pool, the bank or SPV, as the case may be, must at least valuate the residential property used to fund the loans on an annual basis. The bank or SPV must conduct the valuation on a more frequent basis, as the case may be, where the property market is subject to significant changes in terms and conditions.

The insurer shall, within one month from the notification of the availability of the new improvements, give its policyholders the option of requesting hardcopy statements and reports. The insurer shall, within two weeks of the request, make hard copies of the statements and reports available to any policyholder who requests them.

An insurer issuing an ILP or an ILP sub-fund must ensure that the ILP or ILP sub-fund advertisements comply with the requirements specified in Appendix F. The insurer shall not pay or cause or permit to be paid, out of the assets of the ILP sub-fund:

(a) any marketing or promotion expenses such as expenses for advertisements in the media, mailers, fact sheets;
(b) any fees from ILP sub-fund that have not been provided for in the product summary and policy contract

It is stated that the “e-money” implies any electronically stored monetary value that is denominated in any currency or pegged by the backer of the money related esteem to any cash that— (a) is issued on receipt of cash that has been paid in development for the purpose of making installment exchanges through the utilize of a payment account; (b) is acknowledged by an individual other than the individual that issues the e-money, and (c) speaks to a claim on the individual that issues the e-money; but does not incorporate any store acknowledged in Singapore, from any individual in Singapore.