Whole Section

  • 12.12 Customer's and Remisier's Assets

    • 12.12.1

      A Trading Member must comply with Part III, Divisions 3 and 4 of the Securities and Futures (Licensing and Conduct of Business) Regulations on customer's assets. For the purpose of this Rule, "customer" includes a Remisier, unless otherwise specified.

      Amended on 23 January 200923 January 2009.

    • 12.12.2

      Regulations 30, 33 and 34 of the Securities and Futures (Licensing and Conduct of Business) Regulations do not apply to a Remisier.

      Amended on 23 January 200923 January 2009.

    • 12.12.3

      A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 27 of the Securities and Futures (Licensing and Conduct of Business) Regulations for a customer or a Remisier as a trust account, or customer or Remisier account, as the case may be.

      Amended on 23 January 200923 January 2009.

    • 12.12.4

      A Trading Member must deposit assets of its customers in a separate custody account from Remisiers.

      Amended on 23 January 200923 January 2009.

    • 12.12.5

      A Trading Member must not commingle the assets of a customer or Remisier with its own assets.

    • 12.12.6

      A Trading Member must not withdraw a Remisier's assets from a custody account except to:—

      (1) return the assets to the Remisier;
      (2) use the assets to meet any amount due and payable by the Remisier to the Trading Member; or
      (3) make a transfer or withdrawal that is authorised by law.
    • 12.12.7

      A Trading Member must notify the Remisier of the withdrawal under Rule 12.12.6 by the next business day.

    • 12.12.8

      For the purpose of this Rule, "Remisier's assets" means any securities and assets (other than money) that are beneficially owned by a Remisier.