27. Maintenance of books and records and furnishing accounts, etc., by trading adviser and pool operator

(1)

Every commodity trading adviser and commodity pool operator must cause to be kept such books and records and file such reports, in such form and manner, as may be prescribed by the Board.

(2)

Every commodity trading adviser and commodity pool operator (each called A) must make full and complete disclosure to A’s subscribers, customers or participants of all open commodity market positions taken or held by A on their behalf or if A is a corporation by any director, manager or employee of the corporation, whether directly or indirectly.

(3)

Every commodity pool operator must furnish —

(a)

statements of account, at such periodic intervals, as the Board may prescribe; and

(b)

an annual report, to each participant in the commodity pool operator’s pool operations.

(4)

The statements of account and annual report must be in such form and manner as may be prescribed by the Board and must include complete information as to the current status of all trading accounts in which the participant has an interest.

(5)

A person who, without reasonable excuse, contravenes subsection (1), or who knowingly or recklessly furnishes any information under subsection (2) or (3) which is false or misleading in a material particular, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 2 years or to both.

(6)

The provisions of this Part in relation to the appointment of an auditor whether by the Board or otherwise, the powers and duties of an auditor and the filing of an auditor’s report apply with the necessary modifications to a commodity market, a clearing house, a commodity trading adviser and a commodity pool operator as they apply to a commodity broker under this Part.

Terms defined in s 2

auditor
Defined · s 2
“auditor” means a public accountant within the meaning of the Companies Act 1967;
Open s 2
Board
Defined · s 2
“Board” means the Enterprise Singapore Board established by section 3 of the Enterprise Singapore Board Act 2018;
Open s 2
clearing house
Defined · s 2
“clearing house”, in relation to a commodity market, means a body corporate that —(a)clears and settles commodity contracts; and(b)makes adjustments to the contractual obligations arising out of those commodity contracts;
Open s 2
commodity broker
Defined · s 2
“commodity broker” means a person who (whether as principal or agent) carries on the business of soliciting, or accepting orders, for the purchase or sale of any commodity by way of or relating to any commodity contract, whether or not the business is part of, or is carried on in conjunction with, any other business;
Open s 2
commodity market
Defined · s 2
“commodity market” means —(a)a market, whether in Singapore or elsewhere, at which commodity contracts are regularly made; or(b)an electronic system, whether operating in Singapore or elsewhere, through which trading in commodity contracts is carried out, but excludes an electronic facility which merely provides price or other information relating to commodity contracts (whether that facility is part of or carried on in conjunction with the provision of any other information not related to commodity contracts) and which does not permit users of the facility to channel orders for, execute transactions in, or make markets in, commodity contracts;
Open s 2
commodity pool operator
Defined · s 2
“commodity pool operator” means any person who carries on a business in the nature of a collective investment scheme within the meaning of section 2 of the Securities and Futures Act 2001 and who, in connection therewith, accepts or receives from other persons funds, security or property, either directly or through capital contributions, the sale of shares or other forms of security or otherwise for the purpose of trading in commodity contracts but does not include any person that the Board may prescribe;
Open s 2
commodity trading adviser
Defined · s 2
“commodity trading adviser” means any person who —(a)carries on the business of advising others (directly or indirectly, through publications or writings, or by whatever means or media) on the making of commodity contracts, including the advisability of trading in any commodity contract made or to be made on, or subject to the business rules of, a commodity market;(b)as part of a regular business, issues or promulgates analyses or reports concerning the making of commodity contracts; or(c)pursuant to a contract or an arrangement with a customer or other person, undertakes on behalf of that customer or other person (whether on a discretionary authority or otherwise granted by the customer or other person) to make any commodity contract for the purposes of managing the client’s funds, but does not include —(i)a bank or merchant bank licensed under the Banking Act 1970;(ii)a commodity broker, commodity broker’s representative, commodity pool operator or commodity pool operator’s representative;(iii)a person who carries on the business of printing or publishing a newspaper and is the holder of a permit issued under the Newspaper and Printing Presses Act 1974 where —(A)insofar as the newspaper is distributed generally to the public it is distributed only to subscribers to, and purchasers of, the newspaper for value;(B)the advice is given or the analyses or reports are issued or promulgated only through that newspaper; and(C)that person receives no commission or other consideration for giving the advice or for issuing or promulgating the analyses or reports; and(iv)any other person that the Board may prescribe,if and only if the carrying on of the business by the abovementioned persons is solely incidental to the carrying on of their business;
Open s 2
corporation
Defined · s 2
“corporation” has the meaning given by the Companies Act 1967;
Open s 2
director
Defined · s 2
“director” has the meaning given by the Companies Act 1967;
Open s 2