Singapore legislation
Regulation 27A
of Securities and Futures (Licensing and Conduct of Business) Regulations
Regulation 27A
Disclosure to customers in relation to assets received on account of customers
A holder of a capital markets services licence must, before depositing assets received on account of a retail customer in a custody account mentioned in regulation 27, disclose in writing to the retail customer —
that the retail customer’s assets will be held on behalf of the customer in accordance with regulation 27; (b)that the holder may withdraw the retail customer’s assets from the custody account and deposit the assets with an approved clearing house, a recognised clearing house, a member of a clearing facility or a member of an organised market for any of the purposes specified in regulation 30;
whether or not the retail customer’s assets will be deposited in a custody account with, and commingled with, the assets of the holder’s other customers;
if the retail customer’s assets will be deposited in a custody account together with, and commingled with, the assets of the holder’s other customers, the risks of such commingling; (e)the consequences for the retail customer’s assets if the custodian with which the custody account is maintained becomes insolvent; and
if the custody account will be maintained with a custodian outside Singapore in accordance with regulation 27(3) —
the fact that the laws and practices relating to custody accounts in the jurisdiction under which the custodian is licensed, registered or authorised may be different from the laws and practices in Singapore relating to custody accounts; and
the fact that any such differences may affect the ability of the customer to recover the assets deposited in the custody account.