Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
SGX-ST Rules
Section D — Regulatory Framework
Chapter 12 — Operational Requirements
Rule Amendments

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  • 12.3 Customer Accounts

    • 12.3.1 Individual Customer Account

      Before opening an individual customer account on its books, a Trading Member must:—

      (1) obtain particulars of the customer (and any person authorised to trade for the customer), including the full name, a copy of the identity card/passport, specimen signature, residential and mailing addresses, telephone numbers, occupation, and the name, address and telephone number of the customer's employer, and investment objectives (if applicable); and
      (2) take suitable steps to verify the customer's identity and intention if the customer does not open the account in person.

      Refer to Practice Note 12.3.1, Practice Note 12.3.1, 12.3.2 and Practice Note 12.3.1, 12.3.4.

      Amended on 1 July 2016.

    • 12.3.2 Corporate Customer Account

      Before opening a corporate customer account on its books, a Trading Member must:—

      (1) obtain particulars of the customer, including the full name, registered and mailing addresses, names and signatures of persons authorised to trade, and investment objectives (if applicable);
      (2) obtain a certified true copy of the certificate of incorporation of the customer; and
      (3) obtain either:—
      (a) a copy of the directors' resolution of the customer approving the opening of a corporate customer account with the Trading Member and empowering specific directors and officers to:—
      (i) trade in securities or futures contracts for the corporate customer account; and
      (ii) execute all documentation for trading and settlement in the corporate customer account;
      (b) a power of attorney (in English) certified by a notary public, authorising identified persons to open a corporate customer account and trade on behalf of the corporate customer; or
      (c) note in writing the basis upon which it believes the corporate customer may open the corporate customer account and engage in transactions and that the persons acting for the corporate customer have been duly authorised to trade on the corporate customer's behalf.

      Refer to Practice Note 12.3.1, 12.3.2.

      Amended on 3 April 2008, 1 July 2016 and 8 October 2018.

    • 12.3.3 Agency Customer Account

      For an agency customer account carried on the books of a Trading Member, the Trading Member must have on file:—

      (1) the name of the principal; and
      (2) written evidence of the customer's authority to trade for the principal.

      Amended on 1 July 2016.

    • 12.3.4 Joint Customer Account

      (1) A Trading Member may allow customers to open a joint customer account carried on its books if:—
      (a) a joint securities account is opened with CDP;
      (b) each joint customer account holder is at least 18 years old; and
      (c) no joint customer account holder is an undischarged bankrupt.
      (2) A joint customer account may be operated by not more than 2 individual customers. However, if it is an estate account, it may be operated by all personal representatives acting on behalf of the estate of the deceased.
      (3) A Trading Member must maintain the following information:—
      (a) particulars of each joint customer account holder;
      (b) the names of persons authorised to give trading orders and settlement instructions and receive scrip from the Trading Member;
      (c) the names of persons to whom payments by the Trading Member are to be made; and
      (d) details of any customer accounts carried on the books of the Trading Member held in an individual capacity by a joint customer account holder.
      (4) A Trading Member must require each joint customer account holder to specify whether the joint customer account holder is jointly, severally, or jointly and severally liable for all debts incurred in a joint customer account.

      Refer to Practice Note 12.3.1, 12.3.4.

      Amended on 14 May 2009 and 1 July 2016.

    • 12.3.5 Approval of Customer Accounts

      (1) At least 1 senior management staff independent of sales or dealing of a Trading Member, or a senior management staff of a related corporation of that Trading Member charged with the customer account approval function, must approve the opening of a customer account carried on the books of the Trading Member.
      (2) The approval must:—
      (a) be given before the execution of the first trade for the customer; and
      (b) be in writing which includes secured electronic record; and
      (c) form part of the permanent records of the Trading Member.

      Amended on 1 July 2016.

    • 12.3.6 Risk Acknowledgement Statement

      A Trading Member must ensure that the customer is aware of and must obtain a written acknowledgement from the customer that the customer is aware of and understands the risks associated with holding and trading securities and futures contracts in accordance with:

      (i) in the case of a Trading Member that holds a Capital Markets Services Licence, Regulation 47DA of the SFR (Licensing and Conduct of Business); and
      (ii) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), contain such requirements as may be prescribed by the Relevant Regulatory Authority. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

      Amended on 3 April 2008, 18 September 2012, 19 May 2014, 29 December 2014 and 8 October 2018.

    • 12.3.7 Separate Trading Accounts and Account Designation

      (1) A Trading Member must maintain separate Trading Accounts for each customer or each group of joint customers (as the case may be) whose account is carried on the books of the Trading Member.
      (2) Each Trading Account must be identified and designated by the full name of the of the customer(s) whose account is carried on the books of the Trading Member and by a unique Trading Account code, both of which must be reported to SGX-ST before the Trading Account is used to send in any orders.

      Amended on 18 September 2012, 26 April 2013 and 1 July 2016.

    • 12.3.8

      In this Rule 12.3, a customer account on the books of a Trading Member includes an account of a Trading Representative.

      Amended on 1 July 2016.

    • 12.3.9 [Rule has been deleted.]

      Deleted on 1 July 2016.