Chapter 12 — Operational Requirements

12.1.1

A Trading Member, Director or Trading Representative must:—

(1) maintain complete and accurate records and audit trails to evidence compliance with

(a) in the case of a Trading Member that holds a Capital Markets Services Licence, the Rules, and in accordance with the requirements in the Securities and Futures Act, and/or Securities and Futures Regulations or the Rules; and

(b) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), such requirements as may be prescribed by the Relevant Regulatory Authority and the Rules. 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;

(2) not make, or cause to be made, a false or misleading entry, in hardcopy, or electronic form, in any books, records, slips, documents, statements relating to the business, affairs, transactions, conditions, assets or accounts ("the Documents") of a Trading Member;

(3) make all material entries in any of the Documents; and

(4) not alter or destroy any of the Documents without a valid reason.

Refer to Directive No. 4.

Amended on 18 September 2012 18 September 2012, 19 May 2014 19 May 2014 and 29 December 2014 29 December 2014.

12.1.2

A Trading Member must ensure the integrity, security and confidentiality in the transmission and storage of all records.

12.1.3

A Trading Member must make records available to SGX-ST at such time as SGX-ST requires.

Added on 18 September 2012 18 September 2012.

12.2 Confidentiality of Customer's Information

12.2.1

A Trading Member and its Trading Representative must maintain confidentiality of a customer's information, unless:—

(1) the prior consent of the customer for the disclosure of the information is obtained;

(2) the disclosure is for the effective execution of the customer's order;

(3) the disclosure is necessary for the operations and risk management of the Trading Member if these functions have been outsourced by the Trading Member; or

(4) the disclosure is required under the law or under the Rules.

12.2.2

A Trading Member must ensure that a person to whom it discloses a customer's information under Rules 12.2.1(2) and (3) maintains confidentiality of such information.

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 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 3 April 2008, 1 July 2016 1 July 2016 and 8 October 2018 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 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 14 May 2009 and 1 July 2016 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 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 3 April 2008, 18 September 2012 18 September 2012, 19 May 2014 19 May 2014, 29 December 2014 29 December 2014 and 8 October 2018 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 18 September 2012, 26 April 2013 26 April 2013 and 1 July 2016 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 1 July 2016.

12.3.9 [Rule has been deleted.]

Deleted on 1 July 2016 1 July 2016.

12.3A Customer Education

12.3A.1

Save for Accredited Investors and Institutional Investors, a Trading Member must provide its Internet Trading customers with adequate information, guidance and training on:—

(1) prohibited trading practices;

(2) potential limitations and risks of Internet Trading;

(3) system functionalities and order management procedures; and

(4) market conventions such as minimum bid sizes and board lot sizes.

With respect to Accredited Investors and Institutional Investors, a Trading Member's obligation relates solely to the provision of adequate information in relation to prohibited trading practices.

Added on 18 September 2012 18 September 2012.

12.4 Trading Authority

12.4.1

Before accepting any orders from a third party, a Trading Member must obtain written authorisation from the customer empowering the third party to trade for the customer's account carried on the books of the Trading Member.

Amended on 1 July 2016 1 July 2016.

12.5 Brokerages and Charges

12.5.1

Unless SGX-ST decides otherwise, the commission rate chargeable for the purchase or sale of securities or futures contracts is negotiable.

Amended on 3 April 2008 3 April 2008 and 8 October 2018 8 October 2018.

12.5.2

All charges and expenses, including any fees imposed by CDP and/or SGX-ST, stamp duty and Goods and Services Tax, to be borne by the customer (whether included as part of the brokerage or otherwise) must be accurately disclosed to the customer and agreed between the customer and the Trading Member.

Amended on 1 July 2016 1 July 2016.

12.6 Contract Notes

12.6.1

A Trading Member must send its customer a contract note for the purchase or sale of securities or futures contracts.

Refer to Practice Note 12.6.1.

Amended on 3 April 2008 3 April 2008, 19 May 2014 19 May 2014, 1 July 2016 1 July 2016 and 8 October 2018 8 October 2018.

12.6.2

The contract note must state that the contract is subject to the Rules and Directives of SGX-ST if the trade is:—

(1) transacted on or through the Trading System; or

(2) reported to SGX-ST.

Amended on 3 April 2008 3 April 2008.

12.6.3

In the case of a Trading Member that holds a Capital Markets Services Licence<:

(1) A contract note must:

(a) be sent by the next market day;

(b) contain the information specified in Regulation 42(1B) of the Securities and Futures (Licensing and Conduct of Business) Regulations; and

(c) show separately, where applicable:

(i) brokerage charged by the Trading Member;

(ii) [deleted];

(iii) stamp duty;

(iv) Goods and Services Tax;

(v) any other fees in addition to the brokerage charged by the Trading Member; and

(vi) any other fees charged by any other party (including CDP and/or SGX-ST) and borne by the customer in addition to the brokerage charged,

unless otherwise prescribed by SGX-ST from time to time,

(2) before issuing contract notes in electronic form, the Trading Member must obtain the customer's prior revocable and informed consent. The Trading Member must retain evidence of the customer's consent. To constitute an informed consent, a customer must be told of the manner of delivery and retrieval of the electronic record and any costs that may be incurred.

Amended on 23 January 2009 23 January 2009, 19 May 2014 19 May 2014, 29 December 2014 29 December 2014 and 1 July 2016 1 July 2016.

12.6.4

In the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), a contract note must comply with such requirements as may be prescribed by the Relevant Regulatory Authority, including requirements relating to a customer's contract note in electronic form. 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 19 May 2014 19 May 2014.

12.6.5

[Rule has been deleted.]

Deleted on 19 May 2014 19 May 2014.

12.6.6

[Rule has been deleted.]

Deleted on 19 May 2014 19 May 2014.

12.6.5

If asked by SGX-ST, a Trading Member must produce the contract notes in substantially the same form and containing the same trading information as were given to customers.

Amended on 19 May 2014 19 May 2014.

12.7 Statement of Account to Customers

12.7.1

A Trading Member must send its customer statements of account on a regular basis in accordance with:

(a) in the case of a Trading Member that holds a Capital Markets Services Licence, Regulation 40 of the SFR (Licensing and Conduct of Business); and

(b) in the case of a Trading Member that holds a licence specified Rule 4.1.1(1)(b), such requirements as may be prescribed by the Relevant Regulatory Authority, including requirements relating to a customer's statement of account in electronic form. 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 19 May 2014 19 May 2014, 1 July 2016 1 July 2016 and 8 October 2018 8 October 2018.

12.7.2

[Rule has been deleted.]

Deleted on 8 October 2018 8 October 2018.

12.7.3

[Rule has been deleted.]

Deleted on 19 May 2014 19 May 2014.

12.7.4

[Rule has been deleted.]

Deleted on 19 May 2014 19 May 2014.

12.7.5

If asked by SGX-ST, a Trading Member must produce the statement of accounts in substantially the same form and containing the same information as were given to customers.

12.8 Amendment of Contract

12.8.1

A Trading Member may amend a contract if there is a valid reason for the amendment.

12.8.2

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 contract amendment function, must approve the amendment of contract.

12.8.3

The approval must be given before the contract is amended.

12.9 Communication with Third Parties

12.9.1

A Trading Member must communicate directly with its customers in respect of statements, contract notes, or all other information, whether in writing or electronically, unless the customer has authorised otherwise in writing.

12.9.2

A Trading Member must not allow any person other than the customer to collect any cash, share certificates, contract notes, credit or debit notes, cheques or statements, unless the customer has authorised that person in writing.

12.10 Payment to Customers

12.10.1

All cheques to customers must be crossed, unless:—

(1) the payee customer requests otherwise in writing; and

(2) a 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 payment function, authorises in writing the request.

12.10.2

A Trading Member must not accept a house cheque (a crossed cheque issued by the Trading Member in favour of a customer) from a customer unless:—

(1) the customer is the payee of the cheque; and

(2) the cheque is used to settle an amount owing by the customer to the Trading Member or is deposited into a trust account under Rule 12.11, as directed by the customer.

12.10A Customer's Money and Assets

12.10A.1

Subject to Rule 12.10A.2, a Trading Member must discharge its fiduciary obligations to its Customers by:

(1) segregating Customers' monies and assets from the Trading Member's monies and assets;

(2) depositing Customers' monies and assets in trust or custody accounts; and

(3) separately accounting for the monies and assets of each Customer.

Added on 19 May 2014 19 May 2014.

12.10A.2

A Trading Member shall:

(1) in the case of a Trading Member that holds a Capital Markets Services Licence, comply with such requirements prescribed in Rules 12.11 and 12.12; and

(2) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), comply with 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.

Added on 19 May 2014 19 May 2014 and amended on 29 December 2014 29 December 2014.

12.11 Customer's and Remisier's Money

12.11.1

A Trading Member must comply with Part III, Divisions 2 and 4 of the Securities and Futures (Licensing and Conduct of Business) Regulations on customer's money. For the purpose of this Rule, "customer" includes a Remisier, unless otherwise specified.

Amended on 23 January 2009 23 January 2009.

12.11.2

Regulation 16(1)(b) of the Securities and Futures (Licensing and Conduct of Business) Regulations does not apply to a Remisier. A Trading Member must deposit all money received on account of a Remisier in a trust account.

Amended on 23 January 2009 23 January 2009.

12.11.3

A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 17 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 2009 23 January 2009.

12.11.4

A Trading Member must deposit money received on account of customers in a separate trust account from Remisiers.

Amended on 23 January 2009 23 January 2009.

12.11.5

A Trading Member must not commingle money received on account of its customers or its Remisiers with its own funds. However, a Trading Member may deposit its own funds into a trust account under the circumstances specified in Regulation 23(1) of the Securities and Futures (Licensing and Conduct of Business) Regulations.

Amended on 23 January 2009 23 January 2009.

12.11.6

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

(1) pay the Remisier;

(2) meet any amount due and payable by the Remisier to the Trading Member;

(3) reimburse the Trading Member money advanced to the trust account, and any interest and returns that the Trading Member is entitled to, provided the withdrawal does not result in the trust account becoming under-funded; or

(4) make a payment or withdrawal that is authorised by law.

12.11.7

A Trading Member must notify the Remisier of the withdrawal made under Rule 12.11.6 by the next business day.

12.11.8

This Rule shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

Added on 19 May 2014 19 May 2014.

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 2009 23 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 2009 23 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 2009 23 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 2009 23 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.

12.12.9

This Rule shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

Added on 19 May 2014 19 May 2014.

12.13 Reporting of Delinquent Accounts

12.13.1

A Trading Member that holds a Capital Markets Services Licence must inform SGX-ST (or any third party to whom SGX-ST has outsourced its operational functions) of the particulars of any customer account carried on the books of the Trading Member that it considers to be a delinquent account. SGX-ST (or the third party) may disseminate such information to all other Trading Members that holds a Capital Markets Services Licence.

Amended on 19 May 2014 19 May 2014, 29 December 2014 29 December 2014 and 1 July 2016 1 July 2016.

12.14 Separation of Front Office and Back Office Functions

12.14.1

A Trading Member must have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions to prevent any conflict of interests.

Amended on 18 September 2012 18 September 2012.

12.15 Stock Account

12.15.1

All purchases and sales of securities or futures contracts by a Trading Member for its proprietary account must be made under a separate Stock Account of the Trading Member.

Amended on 3 April 2008 3 April 2008 and 8 October 2018 8 October 2018.

12.15.2

A Stock Account must be operated by a Director, or his designate, who is licensed to trade.

Amended on 3 April 2008 3 April 2008.

12.15.3

A Trading Member must not allow a Remisier to operate a Stock Account.

Amended on 3 April 2008 3 April 2008.

12.16 [Rule has been deleted.]

Deleted on 1 July 2016 1 July 2016.

12.16.1 [Rule has been deleted.]

Amended on 3 April 2008 3 April 2008 and 23 January 2009 23 January 2009 and deleted on 1 July 2016 1 July 2016

12.16.2 [Rule has been deleted.]

Deleted on 1 July 2016 1 July 2016.

12.16.3 [Rule has been deleted.]

Deleted on 1 July 2016 1 July 2016.

12.16.4 [Rule has been deleted.]

Deleted on 1 July 2016 1 July 2016.

12.17 Trading by Employees and Agents

12.17.1

A Trading Member must require a Director, Officer, Dealer and employee to obtain the prior written approval of a 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 approval function, for each trade in his or her personal account or an account over which he or she has control or influence (other than a customer's Discretionary Account) (such account(s) being an account carried on the books of the Trading Member).

Refer to Practice Note 12.17.1.

Amended on 3 April 2008 3 April 2008 and 1 July 2016 1 July 2016.

12.17.2

A Trading Representative of the Trading Member must not execute an order for an account referred to in Rule 12.17.1, unless the order is authorised in writing as required under Rule 12.17.1.

12.17.3

A Trading Member must require a Director, Officer, Trading Representative or employee of the Trading Member to trade through it. However, if this is impractical, the Trading Member meets this Rule if it has procedures to monitor such trades and it documents the circumstances that give rise to the impracticality.

12.17.4

A Trading Member must not knowingly buy or sell securities or futures contracts for a Director, Officer, Trading Representative or employee of another Trading Member, except with the prior written approval of the other Trading Member.

Amended on 3 April 2008 3 April 2008 and 8 October 2018 8 October 2018.

12.17.5

A Trading Member must have in place procedures to ensure that agents who are privy to confidential information relating to dealing in securities or trading in futures contracts, do not use such information to trade for their own benefit.

Amended on 3 April 2008 3 April 2008 and 8 October 2018 8 October 2018.

12.17.6

A Trading Member must have in place procedures to monitor the trading activities of its Directors, Officers, Trading Representatives and employees.

Refer to Practice Note 12.17.1.

12.18 Compliance Review

12.18.1

A Trading Member must carry out checks from time to time to ensure compliance with:

(1) the regulatory requirements of such Relevant Regulatory Authority;

(2) the Rules, Directives; and

(3) its policies and procedures.

Amended on 19 May 2014 19 May 2014.

12.18.2

The checks must be carried out by an internal audit or compliance department/person whose reporting line is independent of dealing, sales and operations.

Added on 19 May 2014 19 May 2014.

12.18A Broker-linked balances

12.18A.1

A Trading Member linked to a broker-linked balance must have a written agreement with the holder of the broker-linked balance setting out (a) the circumstances under which the Trading Member may cause securities to be delivered or transferred into the broker-linked balance; and (b) the conditions to which the Trading Member's rights over the securities in the broker-linked balance are subject. The Trading Member must provide the written agreement to SGX-ST for inspection if requested.

Added on 10 December 2018 10 December 2018.

12.18A.2

The Trading Member shall act in accordance with the written agreement, the Rules and the Act, save that nothing in the Rules shall prevent a Trading Member from releasing securities from the broker-linked balance linked to it into the customer's main balance.

Added on 10 December 2018 10 December 2018.

12.18A.3

Subject to Rule 12.18A.4, a Trading Member must approve the release of securities from the broker-linked balance linked to it by the end of the Market Day following the day on which it receives the customer's request for such release. SGX-ST may, at its discretion, waive or vary this timeline. In accordance with Rule 12.1.1, a Trading Member must maintain proper, complete and accurate records of each customer's requests and its response to such requests.

Added on 10 December 2018 10 December 2018.

12.18A.4

A Trading Member may withhold approval for the release of any securities from a broker-linked balance linked to it only to the extent necessary to secure an obligation owed to it by the holder of the broker-linked balance.

Added on 10 December 2018 10 December 2018.

12.18A.5

A Trading Member that does not approve a customer's request for release of any securities must:

(a) by the end of the Market Day following the day on which it receives the customer's request, inform the customer that the request has been rejected and the securities will not be released;

(b) provide the reason(s) for not releasing the securities, including details of the obligation(s) which is owed by the customer to the Trading Member, including the value thereof, if so requested by the customer, by the Market Day following the day on which it receives the customer's request for reason(s) and/or details; and

(c) provide the customer with such information and by such time as SGX-ST may prescribe from time to time.

SGX-ST may, at its discretion, waive or vary any of the timelines in this Rule.

In accordance with Rule 12.1.1, a Trading Member must maintain proper, complete and accurate records of each customer's requests and its response to such requests.

Added on 10 December 2018 10 December 2018.

12.18A.6

SGX-ST may, in respect of any Securities Account that is maintained directly with it:

(a) transfer securities out of a broker-linked balance into the main balance, notwithstanding that the Trading Member linked to the broker-linked balance has not approved the transfer, if SGX-ST is of the view that the Trading Member has failed to comply with the Rules;

(b) refuse to transfer securities into a broker-linked balance if the Trading Member linked to the broker-linked balance has had its trading rights ceased, is suspended, or has been terminated under the Rules.

Added on 10 December 2018 10 December 2018.

12.18A.7

A resigning Trading Member must, in respect of each customer that has a broker-linked balance linked to it, release all securities in the broker-linked balance into the customer's main balance by the effective date of resignation.

Added on 10 December 2018 10 December 2018.

12.19 Advertising

12.19.1

A Trading Member must ensure that any advertising or publicity:—

(1) is accurate;

(2) is not misleading;

(3) does not contain claims that are not externally verifiable; and

(4) does not tend to bring SGX or its related corporations, or other Trading Members, into disrepute.

12.19.2

A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall not direct any advertising or publicity to deal in securities or futures contracts on SGX-ST to customers domiciled in Singapore or to the extent that it may be acted upon by customers in Singapore.

Added on 19 May 2014 19 May 2014 and amended on 8 October 2018 8 October 2018.

12.20 Soft Dollar Commissions

12.20.1

A Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker if:—

(1) the goods and services can reasonably be expected to assist in the provision of services to the customer;

(2) records of the goods and services received are maintained; and

(3) there are appropriate internal controls and procedures for such arrangements.

Refer to Practice Note 12.20.1.

12.20.2

A Trading Member may pay for goods and services to customers for directing business to the Trading Member if:—

(1) records of such payments are maintained;

(2) there are procedures to control such arrangements; and

(3) the arrangements do not violate any law, regulation or professional code of ethics on the part of the recipients.

Refer to Practice Note 12.20.1.

12.21 Use of Office Premises

12.21.1

A Trading Member must not allow any unauthorised person to use, or operate out of, its office premises.

12.22 Use of Prescribed Forms

12.22.1

A Trading Member must use forms that SGX-ST prescribes.

12.23 Application of Chapter 12

12.23.1

The following Rules shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

Rule	Heading
12.3.1, 12.3.2, 12.3.3, 12.3.4, 12.3.5	Customer Accounts
12.3A	Customer Education
12.4	Trading Authority
12.8.2, 12.8.3	Amendment of Contract
12.9	Communications with Third Parties
12.10	Payment to Customers
12.15	Stock Account
[Deleted]	[Deleted]
12.17	Trading by Employees and Agents

Added on 19 May 2014 19 May 2014 and amended on 1 July 2016 1 July 2016.

12.23.2

A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to the areas set out in Rule 12.23.1.

Added on 19 May 2014 19 May 2014.