Singapore legislation
Regulation 31
of Securities and Futures (Licensing and Conduct of Business) Regulations
Regulation 31
Customer agreement
Subregulation 1
Where the holder of a capital markets services licence is licensed to provide custodial services, the holder shall, before providing custodial services for its customer’s assets, notify the customer of the terms and conditions that would apply to the safe custody of the customer’s assets.
Subregulation 2
The terms and conditions that apply to the provision of custodial services by such a holder to its customer shall include —
the arrangements for the giving and receiving of instructions by or on behalf of the customer in respect of the services to be provided including, where applicable, the arrangements for the giving of authority by the customer to another person and the extent of that authority and any limitation thereto;
any lien over or security interest in the assets by the holder or a third party;
the circumstances under which the holder may realise the assets held as collateral to meet the customer’s liabilities to the holder; (d)where the customer’s assets are to be held with a custodian other than the holder, the liability of the holder in the event of default by the custodian;
where the holder intends to commingle the customer’s assets with those of other customers and maintain such assets with a custodian other than itself, a statement that the customer’s interest in the assets may not be identifiable by separate certificates, or other physical documents or equivalent electronic records, and a condition that the holder shall maintain records of the customer’s interest in the assets that have been commingled;
the person in whose name the assets are registered;
the arrangements in relation to claiming and receiving dividends, interest payments and other entitlements accruing to the customer, and the exercise of any right and power arising from ownership of the assets;
the arrangements for the provision of information relating to the custody of the asset to the customer; and
all applicable fees and costs for the custody of the assets.