Singapore legislation
Clause 53
Clause 53
Certain moneys to be deposited with stock exchange
(1)
A stockbroker shall, out of the moneys that are received by him or by any member firm of which he is a partner or member company of which he is a director and that are required to be dealt with in accordance with section 36 —
cause to be deposited with the stock exchange of which he is a member, or by which his firm or company is recognised, on or before the prescribed day for the stockbroker, an amount that is not less than the prescribed part of the lowest balance in his or the firm’s or company’s trust account during the relevant period for the stockbroker; and
thereafter, during each period of twelve months ending on the 31st day of March, cause to be kept deposited with that stock exchange an amount that is not at any time less than the prescribed part of the aggregate of —
the amount that was the lowest balance in his, the firm’s or company’s trust account on any day during that period or the period of twelve months ending on the immediately preceding 31st day of March; and
an amount that, on the day on which the lowest balance or aggregate is ascertained for the purposes of sub-paragraph (i), was standing upon deposit by the stockbroker, member firm, or company with that stock exchange in accordance with this section.
(2)
Where two or more trust accounts are kept under section 36 on any day by a stockbroker or member firm or company, the aggregate of the balance of those trust accounts on that day shall, for the purposes of subsection (1), be deemed to be the balance in the trust account of that stockbroker or that member firm or company on that day.
(3)
The prescribed part of the amount, or aggregate of the amounts, referred to in subsection (1) shall be one-third of that amount or aggregate, or such lesser fraction as may be prescribed.
(4)
Nothing in this section requires a stockbroker —
to comply with paragraph (a) of subsection (1) if the lowest balance referred to therein is less than three thousand dollars; or
to comply with paragraph (b) of that subsection if the aggregate amount referred to therein is less than three thousand dollars.
(5)
Subject to subsection (4), where a stockbroker fails to comply with subsection (1) he and, if he is a partner in a member firm, each of the partners in the firm or if he is a member company each director of that company, shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding two thousand dollars and to a further fine not exceeding three hundred dollars for every day during which the offence continues after conviction.