Singapore legislation

Regulation 18C

of Payment Services Regulations 2019

Regulation 18C

General requirements in respect of customer assets

Subregulation 1

A licensee that provides a digital payment token service —

(a)

must treat and deal with all assets received from, or on account of, a customer as belonging to the customer;

(b)

subject to paragraph (2), must not commingle assets belonging to a customer with other assets;

(c)

subject to paragraphs (3) and (4), must not transfer any right, interest, benefit or title in any assets that are deposited in a trust account to itself or any other person; and

(d)

must apply any assets belonging to a customer that are deposited in a trust account solely for any purpose that may be agreed to by the customer.

Subregulation 2

Despite paragraph (1)(b), a licensee may —

(a)

deposit any assets belonging to a customer in a trust account together with, and commingled with, assets belonging to —

(i)

other customers of the licensee; or

(ii)

customers of the safeguarding person with which the trust account is maintained (but not the licensee, even if the licensee is such a customer); and

(b)

deposit its own assets in a trust account together with, and commingled with, assets belonging to a customer in order to —

(i)

open the trust account; or

(ii)

facilitate the settlement of fees arising from a transaction carried out on behalf of a customer in accordance with the customer’s written instructions.

Subregulation 3

Despite paragraph (1)(c), a licensee may transfer any right, interest, benefit or title in any assets from a trust account to itself or another person if the transfer is authorised by the customer’s specific written instructions given before the transfer.

Subregulation 4

Despite paragraph (1)(c), a licensee may transfer its own assets deposited in a trust account in accordance with paragraph (2)(b), and any return arising on those assets, to itself.