Singapore legislation
Section 65
Section 65
Operation of trust account
(1)
An investment adviser shall make arrangements for a custodian to maintain a trust account for his clients in Singapore.
(2)
For the purpose of this Division, “custodian”, in relation to a client of an investment adviser means —
a financial institution appointed by the investment adviser with the prior written consent of that client; or
a financial institution appointed by that client.
(3)
In this Division, “trust account” means a current or deposit account or property account which —
is kept with a custodian; and
contains in its title the words “Trust Account/ Clients”.
(4)
An investment adviser shall pay client’s money or property into the trust account, maintained by a custodian, not later than the next bank business day following the day on which the investment adviser has received the client’s money or property.
(5)
Notwithstanding subsection (1), where money or property that is required by this section to be paid or deposited into a trust account is received by an investment adviser in a place outside Singapore, the investment adviser may pay that money or deposit that property into a trust account maintained by him in that place.
(6)
An investment adviser who withdraws any moneys from a trust account except for the purpose of making a payment —
to the person entitled thereto; or
that is otherwise authorised by law, 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.
(7)
An investment adviser who, with intent to defraud, withdraws money from a trust account shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $30,000 or to imprisonment for a term not exceeding 3 years or to both.
(8)
Except as otherwise provided in this Division, money or property held in a trust account shall not be available for payment of the debts of an investment adviser or liable to be paid or taken in execution under the order or process of a court.
(9)
The holder of an investment representative’s licence shall neither accept nor hold client’s money or property unless he does so on behalf of an investment adviser and in the course of employment under a contract of service with that investment adviser.
(10)
Nothing in this Division shall be construed as taking away or affecting any lawful claim or lien which any person has against or upon any money or property held in a trust account or against or upon any money or property received for the purchase or from the sale of securities before such money or property is paid into the trust account.
(11)
In this section, “property” includes securities.