Singapore legislation

Clause 128

Risk disclosure by certain persons

(1)

The holder of a capital markets services licence to trade in futures contracts or carry out leveraged foreign exchange trading shall not open a futures trading account or leveraged foreign exchange trading account for a customer unless he —

(a)

furnishes the customer with a separate written risk disclosure document which shall be in such form and contain such information as the Authority may prescribe; and

(b)

receives from the customer an acknowledgment signed and dated by the customer that he has received and understood the nature and contents of the risk disclosure document.

(2)

The holder of a capital markets services licence for fund management shall not solicit or enter into an agreement with a prospective customer for the purpose of —

(a)

managing the customer’s futures trading account or foreign exchange trading account; or

(b)

guiding the customer’s futures trading account or foreign exchange trading account,by means of a systematic programme that recommends specific transactions unless, at or before the time the holder engages in the solicitation or enters into the agreement (whichever is the earlier), the holder —

(i)

delivers or causes to be delivered to the prospective customer a risk disclosure document in respect of that purpose which shall be in such form and contain such information as the Authority may prescribe; and

(ii)

receives from the prospective customer an acknowledgment signed and dated by him that he has received and understood the nature and contents of the risk disclosure document.

(3)

Subsection (2) shall not apply to collective investment schemes that are approved under Division 2 of Part XIII.

Read in full context — Securities and Futures Bill →