Customer Accounts and Assets

A Licensee shall keep records:
1. i) To explain the transactions and financial position of business
  1. ii) Enable records to be conveniently and properly audited
  2. iii) > 5 years
2. Any contravention shall be liable to:
  1. i) Fine not exceeding $50,000
    1. ii) $5,000 for every day for a continuing offence
A trading member, director or trading representative must:
1. i) Maintain complete and accurate records and audit trails
  1. ii) Not make any false and misleading entry in its business records, documents, accounts
    1. iii) Make all material entries in the relevant documents
      1. iv) Not alter or destroy any documents
        v) Ensure integrity, security and confidentiality in the transmission and storage of all records
Corporate Customer Accounts
1. Obtain particular of customers
2. Obtain a certified true copy of the certificate of incorporation of the customer
3. Obtain either:
  1. a) A copy of the directors' resolution
    1. b) A power of attorney
      1. c) a written note
Individual Customer Acccounts
Agency Account SGX-ST
1. i) The name of principal
  1. ii) Written evidence of the customer's authority to trade for the principal
Agency Account
1. A Trading member must have on file:
  1. a) the name of the principal
    1. b) written evidence of the customer's authority to trade for the principal
Joint Customer Account
1. 1. Trading Member allow customers to open:
  1. i) Joint securities account is opened with CDP
    1. ii) At least 18
      1. iii) not undischarged bankrupt
2. 2. Operated not more than 2 individual customers, but estate account may be operated by all personal representatives
3. 3. Trading member must maintain the information:
  1. i) particulars of holder
    1. ii) names of persons authorised to give trading order and settlement instruction
      1. iii) names of persons to whom payments are to be made
        iv) details of any customer accounts
        4. Joint customer account holder is jointly, severally, or jointly and severally liable for all debts incurred
Approval of Customer Accounts
1. At least ONE senior management staff independent of....
  1. Given BEFORE the execution of the first trade
    1. Be in WRITING
Risk Acknowledgement Statement
1. Customer is aware of the risk associated
  1. Does not apply to ACCREDITED INVESTOR
Unless SGX-ST decides otherwise, BROKERAGES & CHARGES are negotiable and must be accurately disclosed to the customer and agreed upon
Contract Notes
1. 1. Send by the next Market Day
  1. 2. Show separately
    1. 3. Customers' consent is needed to issue contract notes in electronic form
    2. i. Brokerage charged ii. Stamp duty iii. GST iv. other fees by Trading member v. other fees charged by other party
Statement of Account to Customers must send on regular basis and electronic statements may be sent with customer's revocable and informed consent (Retain evidence)
Amendment of Contract
1. 1. May amend contract with valid reason
  1. 2. At least 1 senior management staff independent of sales of dealing approve
    1. 3. Approval given before the contract is amended
Trading member must communicate directly with customers and not allow any person other than customer to collect anything , unless the person is authorised in writing
Handling of Customer Assets
1. a) Used in such a manner as agreed to by the customer
  1. b) Paid or deposited as prescribed by the customer
    1. c) Recorded and maintained in a separate book entry for each customer
Trust Account
1. Money shall be deposited no later than the next business day
  1. May commingle and deposit all is customers' money in same trust account
    1. Shall not commingle customer money with its own funds
      1. Intend to defraud:
        i) Fine not exceeding $150,000
        ii) <$15,000 everyday for continuing offence
        Other cases:
        i) Fine not exceeding $50,000
        ii) <$5,000 everyday for continuing offence
2. Maintained with:
  1. i) A bank under Banking Act
    1. Merchant Bank approved by MAS
      1. Finance company licensed under FCA
3. Withdrawal of Trust Money
  1. a) Payment to any person entitled
    1. b) Payment for customers securities dealings
      1. c) Payment for brokerage and other charges
        d) Payment to any person or account according to customers written instruction
        e) Reimburse trading member of any money advanced to customer account
        f) Making a deposit or payment or withdrawal that is authorised by law
4. Interest Arising from Trust Account
  1. a) All interest earned from the maintenance of customer's money, b) All returns from the investments received shall accrue to the customer
5. Placement of Licensee's Own Money in Trust Account
  1. a) Prevent customers trust account from being under-margined b) Maintain customers account with financial instituition
  2. Trading member may retain any interest earned and return that arise from monies that it had advanced to the account
CHEQUES to customers must be crossed
Delinquent (not paid or past due) account must be informed to SGX-ST
Custody Account
1. Maintenance of Custody Account with specified custodians
  1. 1. Deposit customer's assets
    1. 2. Licensee may maintain custody account itself where it is licensed under the act to provide custodial services
      1. 3. With custodian outside Singapore for foreign currency denominated assets
2. Suitability of Custodian
  1. a) Conduct due diligence as to the custodians suitability for licensee's customers b) Maintain Records of the grounds which it satisfied istelf of the suitability of the custodian

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Customer Accounts and Assets

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	Erstellt von Lilian Ang vor mehr als 5 Jahre