34. Maintenance of books and records and furnishing accounts, etc., by futures trading adviser and futures pool operator
Feedback & supportLast amended by an amending law of 1995.
Every futures trading adviser and futures pool operator shall cause to be kept such books and records and file such reports, in such form and manner, as may be prescribed by the Authority.
futures trading adviser
“futures trading adviser” means any person who —(a)carries on the business of advising other persons (directly or indirectly, through any publication or writing, or by whatever means or media) concerning futures contracts, foreign exchange trading or leveraged foreign exchange trading, including advice on whether to engage in trading in futures contracts, foreign exchange trading or leveraged foreign exchange trading;(b)as part of a regular business, issues or promulgates any analysis or report concerning futures markets or foreign exchange markets; or(c)pursuant to a contract or an arrangement with a client, undertakes on behalf of the client (whether on a discretionary authority granted by the client or otherwise) trading in futures contracts, foreign exchange trading or leveraged foreign exchange trading for the purposes of managing the client’s funds,but does not include —(i)a bank that is licensed under the Banking Act or a merchant bank approved under the Monetary Authority of Singapore Act;(ii)an accountant or advocate and solicitor in practice whose carrying on of that business is solely incidental to the practice of his profession;(iii)a futures broker or futures pool operator (referred to in this sub-paragraph as the licensee) so long as any activity referred to in paragraph (a), (b) or (c) carried out by the licensee is wholly incidental to the carrying on of the business for which he is so licensed;(iv)a person who carries on the business of printing or publishing a newspaper and is the holder of a permit therefor issued under the Newspaper and Printing Presses Act (referred to in this definition as the proprietor) and the author of any advice, analysis or report published in that newspaper (referred to in this definition as the author) 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 analysis or report is issued or promulgated only through that newspaper;(C)the proprietor receives no commission or other consideration for giving the advice or for issuing or promulgating the analysis or report other than the consideration received from the sale of the newspaper and advertisements placed in the newspaper;(D)the author of the advice, analysis or report receives no commission or other consideration in respect of the advice, analysis or report other than the consideration received from the proprietor of the newspaper; and(E)the proprietor and the author of the advice, analysis or report has no interest, directly or indirectly, in any futures contract referred to in the advice, analysis or report; and(v)such other person carrying on such business as the Authority may by regulations prescribe, so long as any activity referred to in paragraph (a), (b) or (c) carried out by that person is wholly incidental to the carrying on of such prescribed business;
Every futures trading adviser and futures pool operator shall make full and complete disclosure to their subscribers, customers or participants of all open futures market positions and all open positions in foreign exchange trading and leveraged foreign exchange trading taken or held by the futures trading adviser or futures pool operator on their behalf or if a corporation by any director, manager or employee of the corporation, directly or indirectly.
futures pool operator
“futures pool operator” means any person who carries on a business, in the nature of a unit trust or other interest to which Division 6 of Part IV of the Companies Act applies, 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 futures contracts, foreign exchange trading or leveraged foreign exchange trading but does not include such persons as the Authority may by regulations prescribe;
Every futures pool operator shall furnish to each participant in his pool operations —
statements of account at such periodic intervals as the Authority may prescribe; and
an annual report.
Such statements and annual report shall be in such form and manner as may be prescribed by the Authority and shall include complete information as to the current status of all trading accounts in which such participant has an interest.
Any 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.
The provisions of this Part relating to the appointment of an auditor whether by the Authority or otherwise, removal of an auditor by the Authority, and powers and duties of an auditor and the filing of an auditor’s report shall, with the necessary modifications, apply to a Futures Exchange, a clearing house, a futures trading adviser and a futures pool operator as they apply to a futures broker under this Part.
auditor
“auditor” means an approved company auditor as defined in section 4 of the Companies Act;