Singapore legislation

Clause 25

Accounts to be kept by futures brokers

(1)

A futures broker shall —

(a)

cause to be kept such accounting and other records as will sufficiently explain the transactions and reflect the financial position of the business of trading in futures contracts carried on by him and as will enable true and fair profit and loss accounts and balance-sheets to be prepared from time to time; and

(b)

cause those records to be kept in such a manner as will enable them to be conveniently and properly audited.

(2)

Without prejudice to the generality of subsection (1), a futures broker shall cause records to be kept —

(a)

in sufficient detail to show particulars of —

(i)

all amounts received and paid by the futures broker, including amounts paid to and disbursed from a segregated trust account kept under section 37; and

(ii)

all purchases and sales of futures contracts made by the futures broker, and the charges and credits arising from them; and

(b)

in sufficient detail to show separately particulars of all transactions by the futures broker with, or for the account of —

(i)

the customer of the futures broker; and

(ii)

the futures broker himself.

(3)

A futures broker shall retain for a period of not less than 6 years —

(a)

the records kept in accordance with this section; and

(b)

(i)a copy of each futures contract made out by him as agent of a customer; and

(ii)

each futures contract received by him or made out to himself as principal.

(4)

Records required to be kept by a futures broker by this section shall be kept either by making entries in a bound book, or by recording or storing the relevant matters in any other manner as may be approved by the Authority, and anything so entered, recorded or stored shall be deemed to have been effected by, or with the authority of, the futures broker.

(5)

The futures broker shall take reasonable precautions for guarding against falsification and damage or loss and for facilitating discovery of any falsifications.

(6)

Any futures broker who, without reasonable excuse, contravenes 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 — Futures Trading Bill →