Singapore legislation
Section 49L
Section 49L
Power of Futures Exchange to settle claims
(1)
A Futures Exchange may, subject to this Part, allow and settle any proper claim for compensation from a fidelity fund at any time after the commission of the defalcation in respect of which the claim arose.
(2)
Subject to subsection (3), a person shall not commence proceedings under this Part against a Futures Exchange without the consent of the Exchange unless —
the Exchange has disallowed his claim; and
the claimant has exhausted all relevant rights of action and other legal remedies for recovery of the money or other property, in respect of which the defalcation was committed, available against a member of the Exchange in relation to whom or to which the claim arose and all other persons liable in respect of the loss suffered by the claimant.
(3)
A person who has been refused consent by a Futures Exchange may apply for leave to a Judge of the High Court in chambers who may make such order in the matter as he thinks fit.
(4)
A Futures Exchange after disallowing (whether wholly or partly) any claim for compensation from a fidelity fund shall serve notice of such disallowance in the prescribed form on the claimant or his solicitor.
(5)
No proceedings against a Futures Exchange in respect of a claim which has been disallowed by the Exchange shall be commenced after the expiration of 3 months after service of notice of disallowance under subsection (4).
(6)
In any proceedings brought to establish a claim, evidence of any admission or confession by, or other evidence which would be admissible against, the member of a Futures Exchange or other person by whom it is alleged a defalcation was committed shall be admissible to prove the commission of the defalcation, notwithstanding that the member or other person is not the defendant in or a party to those proceedings, and all defences which would have been available to that member or person shall be available to the Exchange.
(7)
A Futures Exchange or, where proceedings are brought to establish a claim, the High Court, if satisfied that the defalcation on which the claim is founded was actually committed, may allow the claim and act accordingly, notwithstanding that the person who committed the defalcation has not been convicted or prosecuted therefor or that the evidence on which the Exchange or the High Court, as the case may be, acts would not be sufficient to establish the guilt of that person upon a criminal trial in respect of the defalcation.