Clause 14

An investment adviser shall make arrangements for a custodian or custodians in Singapore to maintain one or more trust accounts in Singapore for his clients.(2) The custodian shall be appointed by —

an investment adviser with the prior written consent of the client concerned; or

the client concerned.(3) An investment adviser shall pay or deposit any moneys or property held by him on trust for a client into a trust account not later than the next bank business day following the day on which the investment adviser received the moneys or property.(4) Without prejudice to subsection (1), an investment adviser may make arrangements to establish and maintain a trust account for any of his clients with a foreign custodian which is appointed by —

the investment adviser with the prior consent of the client concerned; or

the client concerned.(5) An investment adviser who maintains a trust account for a client with a foreign custodian may pay or deposit into that trust account moneys or property in a currency, or denominated in a currency, other than the Singapore dollar, and no other moneys or property shall be paid or deposited into that trust account.(6) An investment adviser who withdraws any moneys from a trust account other than 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 12 months or to both.(7) An investment adviser who, with intent to defraud, withdraws any moneys 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, moneys or property held in a trust account shall not be available for payment of the debts of an investment adviser or be 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 moneys 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 is paid or property is deposited into the trust account.”.