Singapore legislation
Regulation 51
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 51
Criteria for determining whether director or executive officer failed to discharge duties
For the purposes of section 81P(4) of the Act, the Authority must, in determining whether a director or an executive officer of an approved clearing house or a Singapore recognised clearing house has failed to discharge the duties of his or her office or employment, have regard to whether that individual has taken reasonable steps to discharge the following duties:
ensure the proper functioning of the approved clearing house or Singapore recognised clearing house (as the case may be);
ensure the compliance of the approved clearing house or Singapore recognised clearing house (as the case may be) with all relevant legislation (including instruments, however described, having legislative effect) of any jurisdiction in which it is incorporated or in which it operates;
set out and ensure compliance with written policies on all operational areas of the approved clearing house or Singapore recognised clearing house (as the case may be), including its financial policies, accounting and internal controls, internal auditing and compliance with all legislation (including instruments, however described, having legislative effect), whether of Singapore or of any other jurisdiction in which it is incorporated or in which it operates, and all business rules, governing its operations;
identify, monitor and address the risks associated with the business activities of the approved clearing house or Singapore recognised clearing house (as the case may be);
ensure that the business activities of the approved clearing house or Singapore recognised clearing house (as the case may be) are subject to adequate internal audit;
oversee the financial undertakings and exposure (to risks of any nature) of the approved clearing house or Singapore recognised clearing house (as the case may be), by setting out proper delegation limits and risk management controls; and
ensure —
that the approved clearing house or Singapore recognised clearing house (as the case may be) maintains written records of the steps taken by it to monitor compliance with its policies, the limits on discretionary powers and its accounting and operating procedures; and
that every report, return or statement submitted by the approved clearing house or Singapore recognised clearing house (as the case may be) to the Authority is complete and accurate.