Singapore legislation
Section 49I
Section 49I
Application of fund
(1)
Subject to this Part, a fidelity fund shall be held and applied for the purpose of compensating any person, other than an accredited investor, who suffers pecuniary loss because of a defalcation committed in the course of, or in connection with, the trading of a futures contract which is cleared or to be cleared by a clearing house or a Futures Exchange in Singapore by a member of a Futures Exchange or by any director, officer, futures broker’s representative or employee, as the case may be, of the member of a Futures Exchange in relation to any money or other property which, after 1st April 1995 —
was entrusted to or received by that member or by any of its directors, officers, futures broker’s representatives or employees for or on behalf of any other person; or
was entrusted to or received by that member either as the sole trustee or trustees or as trustee or trustees with any other person or persons, or by any of its directors, officers, futures broker’s representatives or employees as trustee or trustees or for or on behalf of the trustees of that money or property.
(2)
Except as otherwise provided in this section, the total amount that may be paid under this Part to all persons eligible to claim compensation and who suffer loss through defalcations by a member of a Futures Exchange or through defalcations by any of the member’s directors, officers, futures broker’s representatives or employees shall not, in any event, exceed in respect of that member the sum of $500,000, but, for the purposes of this subsection, any amount paid from a fidelity fund shall, to the extent to which the fund is subsequently reimbursed therefor, be disregarded.
(3)
For the purposes of this section, “director” or “officer”, in relation to a member of a Futures Exchange, includes a person who has been, but at the time of any defalcation in question has ceased to be, a director or an officer of the member if, at the time of the defalcation, the person claiming compensation has reasonable grounds for believing that person to be a director or an officer of the member.
(4)
Nothing in this Part shall be construed as to allow a person to claim compensation against the fidelity fund of a Futures Exchange if —
the person has suffered pecuniary loss because of a defalcation committed by a member of the Exchange or by any director, officer, futures broker’ representative or employee of the member; and
such defalcation is in respect of moneys deposited by that person with the futures broker or moneys belonging to that person held by that futures broker, in connection with the trading of a contract which is not a futures contract that is cleared or to be cleared by a clearing house or a Futures Exchange in Singapore.