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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
 
  Enhancing Regulatory Frameworks 45
 
Regulations for Islamic Finance  
45
 
Revision to Requirements on Submission of  
Annual Audited Accounts  
45
 
Revision to Regulatory Framework for Money
 
Changers/Remittance Agents  
46
 
Box 9 – Policy Owners’ Protection Fund Scheme  
46
 
Phase II Amendments to the Securities
 
Futures Act and Financial Advisors Act  
47
 
Keeping Pace with Product Innovation  
49
 
Reviewing the Authorisation Framework for Representatives  
49
 
Establishing Sound Risk Management Guidelines  
49
 
Box 10 – Enhancing Internet Banking Security  
50
 
  ENHANCING REGULATORY FRAMEWORKS

Box 9 Policy Owners’ Protection Fund Scheme
 

The policy owners’ protection fund (PPF)scheme is a privately funded compensation scheme for policy owners. It is aimed at reducing the financial impact on individuals in the event of an insurer failure or default. This scheme will enhance policy owners’ confidence in the insurance industry and limit the potential disruption to society and the economy.

MAS reviewed the PPF scheme, as provided for in the IA since 1986 to ensure that the existing PPF scheme was still relevant in light of market developments.

There are two phases in the review. The first phase of the review, which covers issues on membership, coverage and funding of the PPF scheme has been completed. MAS has finalised details of the recommendations, taking into account the feedback received from the public consultation in December 2005.

Some of the key changes to the PPF scheme include:
Extending PPF coverage to all Accidental & Health policies written in the life or general insurance fund.
Extending PPF coverage to certain selected personal lines insurance policies such as personal motor insurance, personal property insurance and foreign domestic maid insurance.
Setting up a credible pre-funded PPF through imposing risk-based levies on participating insurers.
Allowing risk-based levies to be charged to the shareholders’ fund, subject to certain limits.

The second and final phase of the review will focus on the implementation details of the PPF scheme. This covers the structure, organisation and mandate of the PPF administrator, the payout procedures and public education. MAS will conduct further public consultations on these issues before the implementation of the revised PPF scheme.