18. Notification and acknowledgment from specified financial institutions

Where the holder of a capital markets services licence opens a trust account with a financial institution specified in regulation 17(1), the holder shall, before depositing moneys received on account of its customer in the account, give written notice to the financial institution and obtain an acknowledgment from the financial institution that —

all moneys deposited in the trust account are held on trust by the holder for its customer and the financial institution cannot exercise any right of set-off against the moneys for any debt owed by the holder to the financial institution; and

the account is designated as a trust account, or a customer’s or customers’ account, which shall be distinguished and maintained separately from any other account in which the holder deposits its own moneys.

Where the holder of a capital markets services licence opens a trust account with a custodian outside Singapore in accordance with regulation 17(2), the holder must, before depositing moneys received on account of its customer in the trust account, give written notice to the custodian and obtain an acknowledgment from the custodian that —

all moneys deposited in the account are held by the holder for its customer and the custodian cannot exercise any right of set off against the moneys for any debt owed by the holder to the custodian; and

the account is designated as a trust account, a customer’s account or a customers’ account, and is distinguished and maintained separately from any other account in which the holder deposits its own moneys.

Where the holder of a capital markets services licence opens a trust account with a financial institution specified in regulation 17(1), the holder shall, before depositing moneys received on account of its customer in the account, give written notice to the financial institution and obtain an acknowledgment from the financial institution that —

all moneys deposited in the trust account are held on trust by the holder for its customer and the financial institution cannot exercise any right of set-off against the moneys for any debt owed by the holder to the financial institution; and

the account is designated as a trust account, or a customer’s or customers’ account, which shall be distinguished and maintained separately from any other account in which the holder deposits its own moneys.

Where the holder of a capital markets services licence opens a trust account with a custodian outside Singapore in accordance with regulation 17(2), the holder must, before depositing moneys received on account of its customer in the trust account, give written notice to the custodian and obtain an acknowledgment from the custodian that —

all moneys deposited in the account are held by the holder for its customer and the custodian cannot exercise any right of set off against the moneys for any debt owed by the holder to the custodian; and

the account is designated as a trust account, a customer’s account or a customers’ account, and is distinguished and maintained separately from any other account in which the holder deposits its own moneys.