Singapore legislation

Clause 19

Certain moneys received by dealers to be paid into a trust account

(1)

A dealer shall establish and keep in a bank or banks in Singapore one or more trust accounts designated or evidenced as such into which he shall pay —

(a)

all amounts (less any brokerage and other proper charges) that are received from or on account of any person (other than a stock broker) for the purchase of securities and that are not attributable to securities delivered to the dealer before or within three bank trading days after receipt of those amounts; and

(b)

all amounts (less any brokerage and other proper charges) that are received for or on account of any person (other than a stock broker) from the sale of securities and that are not paid to that person or as that person directs within three bank trading days after receipt of such amounts.

(2)

Moneys required by subsection (1) of this section to be paid into a trust account shall be so paid within three bank trading days after they are received by the dealer.

(3)

A person who —

(a)

contravenes or fails to comply with any provision of this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding two thousand dollars; or

(b)

with intent to defraud contravenes or fails to comply with any provision of this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding three thousand dollars or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.

Read in full context — Securities Industry Bill →