Singapore legislation

Section 57

Accounts to be kept by dealers

(1)

A dealer shall keep or cause to be kept in the English language such accounting and other records as will sufficiently explain the transactions and financial position of his business and enable true and fair profit and loss accounts and balance-sheets to be prepared from time to time and shall cause those records to be kept in such a manner as to enable them to be conveniently and properly audited.

(2)

A dealer shall be deemed not to have complied with subsection (1) in relation to records unless those records —

(a)

are kept in sufficient detail to show particulars of —

(i)

all moneys received or paid by the dealer, including moneys paid to, or disbursed from, a trust account;

(ii)

all purchases and sales of securities made by the dealer, the charges and credits arising from them, and the names of the buyer and seller, respectively, of each of those securities;

(iii)

all income received from commissions, interest, and other sources, and all expenses, commissions, and interest paid, by the dealer;

(iv)

all the assets and liabilities (including contingent liabilities) of the dealer;

(v)

all securities that are the property of the dealer, showing by whom the securities, or the documents of title to the securities, are held and, where they are held by some other person, whether or not they are held as security against loans or advances;

(vi)

all securities that are not the property of the dealer and for which the dealer or any nominee controlled by the dealer is accountable, showing by whom, and for whom, the securities or the documents of title to the securities are held and the extent to which they are either held for safe custody or deposited with a third party as security for loans or advances made to the dealer;

(vii)

all purchases and sales of options made by the dealer and all fees (being option moneys) arising from them;

(viii)

all arbitrage transactions entered into by the dealer; and

(ix)

all underwriting transactions entered into by the dealer;

(b)

are kept in sufficient detail to show separately particulars of every transaction by the dealer;

(c)

specify the day on which or the period during which each transaction by the dealer took place; and

(d)

contain copies of acknowledgments of the receipt of securities or of documents of title to securities received by the dealer from clients for sale or safe custody clearly showing the name or names in which the particular securities are registered.

(3)

Without affecting the operation of subsection (2), a dealer shall keep records in sufficient detail to show separately particulars of all transactions by the dealer with, or for the account of —

(a)

clients of the dealer;

(b)

the dealer himself; and

(c)

employees of the dealer.

(4)

An entry in the accounting and other records of a dealer required to be kept in accordance with this section shall be deemed to have been made by, or with the authority of, the dealer.

(5)

Notwithstanding any other provision of this section, a dealer shall not be deemed to have failed to keep a record referred to in subsection (1) by reason only that the record is kept as a part of, or in conjunction with, the records relating to any business other than dealing in securities that is carried on by him.

(6)

The Authority may exempt a dealer who is not a member company from complying with all or any of the requirements of this section so long as the dealer complies with such other requirements relating to the keeping of books, accounts and records as may be prescribed.

(7)

A dealer who contravenes or fails to comply with any of the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or to both.

Read in full context — Securities Industry Act →