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3.3.10 Segregation of Customers' Monies and Assets and Fiduciary Obligations

Past version: Effective from 01 Apr 2014 to 01 May 2016

Subject to Rule 3.3.10(b)(ii), the following requirements apply in relation to a Member's fiduciary obligations to its Customers:

(a) a Member shall discharge its fiduciary obligations to its Customers by:
(i) segregating Customers' monies and assets from the Member's monies and assets;
(ii) depositing Customers' monies and assets in trust or custody accounts; and
(iii) separately accounting for the monies and assets of each Customer;
and
(b) a Member shall comply with the following segregation requirements:
(i) in the case of a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member, all segregation requirements under the Act and the Conduct of Business Regulations. Except as allowed under those Regulations, the Member is prohibited from depositing or co-mingling its own monies and assets with its Customers' monies and assets; and
(ii) in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b), such segregation requirements as prescribed by the Relevant Regulatory Authority. The General Trading Member shall immediately notify the Exchange on any changes to such requirements. Notwithstanding the foregoing, the Exchange shall have the discretion to prescribe additional requirements.

"Customer" as used in this Rule 3.3.10 in relation to a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member does not include: (a) a director, officer, employee, Approved Trader or Registered Representative of the Member; or (b) a Related Corporation of the Member with respect to an account belonging to and maintained wholly for the benefit of that Related Corporation.

Amended on 1 April 20141 April 2014.