Singapore legislation
Regulation 42
of Securities and Futures (Licensing and Conduct of Business) Regulations
Regulation 42
Contract notes
Subregulation 1
Subject to paragraph (1A), the holder of a capital markets services licence to deal in capital markets products shall, in respect of a sale or purchase of any capital markets products, after entering into the transaction —
give to the other party to the transaction a contract note which contains such information as may be prescribed; or
procure that such a contract note be given in its name.
Subregulation 1A
Paragraph (1) does not apply to any transaction of sale or purchase of securities, units in a collective investment scheme or exchange-traded derivatives contracts effected by the holder of a capital markets services licence through a member of an approved exchange or overseas exchange, if the holder gives, or arranges with that member to give, to the other party to the transaction a contract note, or a copy of a contract note, issued by that member in respect of the transaction, in accordance with the rules of that exchange or with any written law governing the issuance of contract notes by members of that exchange.
Subregulation 1AA
Paragraph (1) does not apply to any transaction of sale or purchase of OTC derivatives contracts, if the holder gives to the other party to the transaction a confirmation in respect of the transaction that states —
the name of the holder;
the name of the party to whom the confirmation is given;
where the holder is dealing in OTC derivatives contracts as a principal, a statement that is so acting;
the date on which the transaction is entered into; and
the type and notional value of the OTC derivatives contracts.
Subregulation 1B
The holder shall include, in every contract note to be given under paragraph (1), where applicable —
the name or style under which the holder carries on business in dealing in capital markets products, and the address of the principal place at which the holder carries on the business;
where the holder is —
dealing in capital markets products other than futures contracts as a principal; or
dealing in capital markets products that are futures contracts against its customer,a statement that it is so acting;
the name and address of the party to whom the contract note is given;
the date on which the transaction is entered into;
in respect of a sale or purchase of securities or units in a collective investment scheme, the number or amount, and description of the securities or units in a collective investment scheme that are the subject of the transaction;
in respect of a sale or purchase of derivatives contracts or a transaction connected with spot foreign exchange contracts for the purposes of leveraged foreign exchange trading, the quantity and type of the derivatives contract or the amount of spot foreign exchange contracts that is the subject of the transaction, as the case may be;
in respect of a sale or purchase of capital markets products, the price per unit of the transaction, the amount of the consideration for the transaction, the rate and amount of commission (if any) charged for the transaction by the holder and the amount of all stamp duties or other duties or taxes payable in connection with the transaction; and
in respect of a sale or purchase of capital markets products, if an amount is to be added to or deducted from the settlement amount in respect of the right to a benefit purchased or sold together with the capital markets products, the first-mentioned amount and the nature of the benefit.
Subregulation 2
The holder of a capital markets services licence shall, no later than the business day immediately following a sale or purchase of capital markets products, give to the other party to the transaction a contract note for the transaction.
Subregulation 2A
Notwithstanding paragraph (2), where any detail in a transaction that is required to be included in every contract note under paragraph (1B) becomes available or is only determined after the business day specified in paragraph (2), the holder of the capital markets services licence shall give to the other party to the transaction the contract note for the transaction no later than the business day immediately following the business day on which the information required to be included in every contract note in paragraph (1B) becomes available or has been determined.
Subregulation 3
Any person who, without reasonable excuse, contravenes any of the provisions of this regulation shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $5,000 for every day or part thereof during which the offence continues after conviction.