Designation of SDIC by Minister
The SDIC is a company limited by guarantee that is designated by the Minister to be the deposit insurance and policy owners’ protection fund agency. As SDIC is a company limited by guarantee, it has no shareholders but it has members who were appointed by the Minister.
Scope of Responsibilities and Powers Clearly Defined
The scope of responsibilities and powers of the SDIC are clearly defined under the Deposit Insurance and Policy Owners’ Protection Schemes Act. Under the DI Scheme, the objectives of the SDIC are to administer the DI Scheme as well as to administer and manage the Deposit Insurance Fund. In regards to the DI Scheme, the SDIC’s functions are to collect premium contributions from DI Scheme members, make payment of compensation to insured depositors and educate the public on the DI Scheme. In respect of policy owners’ protection, the objectives of the SDIC are to administer the Policy Owners’ Protection (PPF) Scheme. In this regard, SDIC’s main functions are to manage the Policy Owners’ Protection Life Fund and Policy Owners’ Protection General Fund, collect levies from PPF Scheme members, make payment of compensation to policy owners or relevant beneficiaries and third parties, and educate the public on the PPF Scheme. The SDIC is vested with the powers to take any action for the purpose of discharging its functions under the Deposit Insurance and Policy Owners’ Protection Schemes Act.
Independent Board of Directors
Under the Deposit Insurance and Policy Owners’ Protection Schemes Act, the Board of Directors shall consist of a Chairman and not less than 4 but not more than 9 other directors. To avoid any conflict of interest, no person can be a director if he is a substantial shareholder, director or an employee of any DI Scheme or PPF Scheme member or its related corporation. The Board of Directors is accountable to the Minister for its acts and decisions. The salaries, fees and allowances to be paid to directors have to be approved by the Minister.
The Board of Directors sets the directions and the policies of the SDIC and appoints the Chief Executive Officer to be responsible for the day-to-day administration and management.
Accountability to the Minister
The board of directors of SDIC is accountable to the Minister for its acts and decisions. This accountability is exercised in the following manner:
- All three-year estimates of income and expenditure of the Deposit Insurance (DI) Fund, the Policy Owners’ Protection (PPF) Life Fund, the Policy Owner’s Protection (PPF) General Fund and SDIC are required to be presented to the Minister for approval.
- Investment of the DI Fund, PPF Life Fund and PPF General Fund in assets other than those prescribed in the Deposit Insurance and Policy Owners’ Protection Schemes Act. is required to be approved by the Minister.
- An annual report of SDIC’s activities is required to be submitted to the Minister.
- Any amendment to SDIC’s memorandum and articles of association has to be approved by the Minster.
Independent Audit
The accounts of SDIC, the DI Fund, the PPF Life Fund and the PPF General Fund are required to be audited by an auditor appointed annually by the SDIC. The SDIC is required to submit the audited financial statements and auditors’ report of SDIC, the DI Fund, the PPF Life Fund and the PPF General Fund to the Minister.
Whistleblowing Policy & Procedure
The policy is intended to promote good corporate governance practices and a culture of accountability, transparency and integrity. Further, it provides an avenue for employees and external parties to raise their concerns about reportable incidents. Employees will be protected from reprisals or victimisation for whistleblowing in good faith. Good faith refers to reports made without malice, personal benefits or personal grievances.
Reporting Mechanisms:
The Receiving Officer is the Chairman of SDIC’s Audit and Risk Management Committee. To ensure confidentiality, concerns should be emailed to the following address: whistleblowing@sdic.org.sg