MAS: Annual report 2006 / 2007
CONTENTS
HOME
 
ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE 25
Changes to Capital Requirements for Singapore-incorporated Banks 25
Enhancing MAS’ Role in Bank Resolution 25
Changes to Rules on Unsecured Credit 25
Shift Towards Large Exposures Regime 26
Introduction of Asset Maintenance for Foreign Banks 26
Box 3 - An Update On Basel II Implementation In Singapore 26
Legislative Amendments to Securities and Futures Act and Financial Advisers Act 27
Box 4 - Monograph On Supervisory Framework For Financial Institutions 27
T rust Companies 28
Self-assessment Initiative 28
Anti-Money Laundering & Countering the Financing of Terrorism 28
Building Confidence in E-payments and Internet Banking Systems 28
Insurance Securitisation 29
Nomination of Beneficiaries to Insurance Policies 29
Policy Owners’ Protection Fund 29
Box 5 - Supervision Of New Initiatives in the  
  Singapore Capital Markets - Jade And AsiaClear 30
Mortgage Insurance 30
Thematic Approach to Market Conduct Supervision 30
Box 6 - Market Manipulation 31
Mystery Shopping on Practices in the Financial Advisory Industry 31
Review on Switching of Investment Products 31
Enhancing Market Discipline 31
Corporate Governance of Listed Companies 32
Amendment to Code on Collective Investment Schemes 32
Implementation of Payment Systems (Oversight) Act 2006 32
 
Nomination of Beneficiaries to Insurance Policies
Presently, there are no provisions in the Insurance Act governing the nomination of beneficiaries (NoB) to the proceeds from insurance policies. However, a nomination by the policyholder of a spouse and/or children as beneficiaries to the proceeds of a life insurance policy is governed by section 73 of the Conveyancing and Law of Property Act (CLPA). This will automatically create a statutory trust in favour of the nominees. Some insurers and policyholders are concerned about the apparent ambiguities in the application and effect of section 73 of the CLPA.

MAS will be amending the Insurance Act to include a NoB framework. This is to give policyholders greater choice and flexibility in the disbursement of their policy proceeds, and make the process of nominating beneficiaries clearer. Section 73 of the CLPA will then be repealed.

The new NoB framework will:

  • provide for both revocable and irrevocable nominations;
  • govern the disbursement of proceeds from insurance policies for which nominations have been made; and
  • clarify the legal standing of nominations vis-a-vis wills and other legal instruments

MAS is drafting the amendments to the Insurance Act to incorporate provisions for the NoB framework following feedback from the public consultation conducted in December 2005. Implementation is expected by the end of 2007.