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OUR MISSION
OUR OBJECTIVES
 
Supervision
Inspections and
Supervisory Reviews
New Legislation
Enhancing Regulatory Frameworks
Market and Business Conduct
Risk Management
B THE FINANCIAL SECTOR: KEY SUPERVISORY
AND REGULATORY INITIATIVES
 
  New Legislation 41
 
Strengthening Corporate Governance Regulations
 
& Guidelines  
41
 
 
Box 5 – Enhancing Corporate Governance Framework  
41
 
Box 6 – Deposit Insurance Scheme  
42
 
Box 7 – Nomination of Beneficiaries Framework  
43
 
Box 8 – New Framework for Trust Companies
 
to Facilitate Wealth Management  
44
 
  NEW LEGISLATION

Box 7 Nomination of Beneficiaries Framework
 

Presently, there are no provisions in the Insurance Act (IA) to govern the nomination of beneficiaries (NoB) to the proceeds from insurance policies. However, a nomination by the policyholder of his spouse and/or children on his 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 IA to bring under its purview a NoB framework. This is to accord policyholders greater choice and flexibility in the disbursement of their policy proceeds, and to make the process of nominating beneficiaries clearer. Section 73 of the CLPA will be correspondingly repealed.

The new NoB framework will:
Deal with both revocable and irrevocable nominations.
Govern disbursement of proceeds from insurance policies.
Clarify the legal standing of nominations vis-à-vis wills and other legal instruments.

Following the feedback from the public consultation conducted in December 2005, MAS will draft the provisions of the NoB framework into the IA for implementation by the first quarter of 2007.