Singapore legislation
Regulation 3
Regulation 3
Participants to open settlement account
Subregulation 1
Every participant (A) must —
open a settlement account with a settlement institution; or
appoint another participant (B) that has opened a settlement account with a settlement institution (called in these Regulations a settlement agent),to settle all payment obligations due from A to any other participant (including B) arising out of any clearing in each day.
Subregulation 2
A participant who appoints a settlement agent must, before allowing the settlement agent to settle any payment obligations mentioned in paragraph (1), give to the operator a written notice —
that the participant has appointed the settlement agent; and
that is accompanied by a written confirmation from the settlement agent of its appointment.
Subregulation 3
A participant who intends to terminate the appointment of its settlement agent must give to the operator a written notice of the intended termination at least 7 days before the date of termination of that appointment.
Subregulation 4
The operator must give to the Authority a written notice of —
the appointment of a settlement agent by a participant under paragraph (1)(b); or
any intended termination of appointment of a settlement agent by a participant under paragraph (3),as soon as practicable after the operator is so notified by the participant concerned.
Subregulation 5
A participant who fails to comply with any requirement in paragraph (2) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
Subregulation 6
In a prosecution for an offence under paragraph (5), it is not necessary for the prosecution to prove that the defendant intended to commit the offence.
Subregulation 7
The offence under paragraph (5) is a strict liability offence.