Singapore legislation

Clause 11

Repeal and re-enactment of section 54

Section 54 of the principal Act is repealed and the following section substituted therefor:“Dealer or dealer’s representative to give priority to client’s orders54.—

(1)

Except as permitted by subsection (3) —

(a)

a dealer acting as principal or on behalf of a person associated with him; or

(b)

a dealer’s representative acting for his own account or on behalf of a person associated with him,shall not enter into a transaction for the purchase or sale of securities that are permitted to be traded on the stock market of a securities exchange if a client of that dealer or dealer’s representative, who is not associated with that dealer or dealer’s representative, has instructed that dealer or dealer’s representative to purchase or sell, respectively, securities of the same class and that dealer or dealer’s representative has not complied with the instruction.(2) A dealer or a dealer’s representative who 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 12 months or to both.(3) Subsection (1) does not apply in relation to the entering into of a transaction by a dealer as principal or on behalf of a person associated with him, or by a dealer’s representative for his own account or on behalf of a person associated with him, if —

(a)

the instructions from the client of that dealer or dealer’s representative, as the case may be, required the purchase or sale of securities on behalf of the client to be effected only on specified conditions at which the securities were to be purchased or sold and that dealer or dealer’s representative has been unable to purchase or sell the securities by reason of those conditions; or

(b)

the transaction is entered into in prescribed circumstances.”.

Read in full context — Securities Industry (Amendment) Bill →