Singapore legislation
Regulation 47E
of Securities and Futures (Licensing and Conduct of Business) Regulations
Regulation 47E
Risk disclosure by certain persons
Subregulation 1
The holder of a capital markets services licence to deal in capital markets products shall not open a trading account for the purposes of trading in futures contracts, spot foreign exchange contracts for the purposes of leveraged foreign exchange trading or FX OTC derivatives contracts for a retail customer who is not a related corporation of the holder unless it —
furnishes the customer with a separate written risk disclosure document in Form 13; and
receives from the customer an acknowledgment signed and dated by the customer that he has received and understood the nature and contents of the risk disclosure document in Form 13.
Subregulation 2
The holder of a capital markets services licence for fund management shall not solicit or enter into an agreement with a prospective retail customer who is not a related corporation of the holder for the purpose of —
managing the retail customer’s trading account for the purposes of trading in futures contracts, spot foreign exchange contracts for the purposes of leveraged foreign exchange trading or FX OTC derivatives contracts; or
guiding the retail customer’s trading account for the purposes of trading in futures contracts, spot foreign exchange contracts for the purposes of leveraged foreign exchange trading or FX OTC derivatives contracts,by means of a systematic programme that recommends specific transactions unless, at or before the time the holder engages in the solicitation or enters into the agreement (whichever is the earlier), the holder —
delivers or causes to be delivered to the prospective retail customer who is not a related corporation of the holder a risk disclosure document in Form 14; and
receives from the prospective retail customer who is not a related corporation of the holder an acknowledgment signed and dated by him that he has received and understood the nature and contents of the risk disclosure document in Form 14.
Subregulation 3
Paragraph (2) shall not apply to collective investment schemes that are approved under Division 2 of Part 13 of the Act.
Subregulation 4
The holder of a capital markets services licence shall ensure that copies of Forms 13 and 14 delivered to its prospective retail customer who is not a related corporation of the holder are kept in Singapore.
Subregulation 5
Any person who 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 $100,000 or to imprisonment for a term not exceeding 12 months or to both.