Rule 6 — Duties and Obligations of Depository Agents in respect of Sub-Accounts

CDP Depository Rules

Rule Violation		Whether composition may be offered	Composition Amount that may be offered by the Depository, where the Depository has determined the Depository Agent to be in volation			Mandatory minimum penalty imposable by the DC
Rule Number	Brief Description of Rule	Whether composition may be offered	1st Violation	2nd Violation	3rd Violation	Mandatory minimum penalty imposable by the DC
Rule 6 — Duties and Obligations of Depository Agents in respect of Sub-Accounts
6.1	Segregation of Deposited Securities
6.1.3	Depository Agent to at all times segregate the Deposited Securities held in each Sub-Account from those held in other Sub-Accounts.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.1.4	Depository Agent to at all times segregate Deposited Securities held for its own account from Deposited Securities held for its clients.	Not Compoundable	Not Compoundable			$10,000
6.1A	Disclosure of Account Structure to Retail Sub-Account Holders
6.1A	Depository Agent to disclose to Retail Sub-Account Holder information on account structure before depositing securities received on account of that Sub-Account Holder.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.1C	Transactions in Deposited Securities held for Sub-Account Holders
6.1C.1	Depository Agent not to carry out any transaction in respect of the Deposited Securities held for a Sub-Account Holder unless authorised by the Sub-Account Holder to do so.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.1C.2	Depository Agent not to use the Deposited Securities held for the Sub-Account Holder to settle any obligations of another Sub-Account Holder unless as permitted under the CDP Rules.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.1D	Notification of Transactions in Deposited Securities
6.1D	Depository Agent to notify a Sub-Account Holder of any transaction carried out on behalf of the Sub-Account Holder in respect of Deposited Securities.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.1E	Statement of Account
6.1E.1	Unless otherwise provided in the CDP Rules, Depository Agent to furnish to each Sub-Account Holder a statement of account in respect of the Deposited Securities held on that Sub-Account Holder’s behalf on a periodic basis (at least monthly).	Not Compoundable	Not Compoundable			$10,000
6.1E.2	Depository Agent to furnish to a Sub-Account Holder a statement of account upon request.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.2	Records
6.2.1	Depository Agent to maintain proper, complete, accurate and up-to-date records, containing the prescribed information, of Sub-Account Holders and the Deposited Securities held for each Sub-Account Holder.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.2.2	Depository Agent to, on each business day, reconcile its books and records with the Depository’s records in relation to the Deposited Securities that are held in each Sub-Account, and if there is any discrepancy, to inform the Depository and if required rectify the discrepancy immediately.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.3	Disclosure of Sub-Account Holders' Information and Other Action Required
6.3	Depository Agent to disclose to the Depository such information, provide such assistance or take such action as the Depository may require in relation to Sub-Account Holders.	Not Compoundable	Not Compoundable			$10,000
6.4	Audit Certification
6.4	Depository Agent to, within five calendar months after the close of each financial year, obtain and submit to the Depository an independent audit certification in a manner acceptable to the Depository, that it has compiled with its obligations under the prescribed CDP Rules and/or such other obligation or condition as prescribed by the Depository.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.5	Failure to Submit within Deadlines
6.5.2	Depository Agent to request for an extension of time for the submission of an audit certification at least seven business days before the expiry of the prescribed deadline.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8	Facilitation of Sub-Account Holders’ Shareholder Rights
6.8.1(a)	Depository Agent to distribute to Sub-Account Holders in accordance with their respective holdings in the Sub-Accounts as at the Record Date any cash, property or other rights that may be received from an Issuer through the Depository.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.1(b)	Unless otherwise provided in the CDP Rules, Depository Agent to keep each Sub-Account Holder duly informed of relevant information which may from time to time be issued by the Issuer or by the Depository in respect of his relevant holdings in a Sub-Account.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.1(c)	Depository Agent to furnish to each Sub-Account Holder such information as the Depository shall specifically direct, promptly after receipt of such direction from the Depository.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.1(d)	Depository Agent to give notice in writing to the Depository immediately upon the breach of any one or more of the representations and warranties referred to in the Depository Agent Agreement.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.2(a)	Unless the Individual Sub-Account Holder has expressly opted out of being so notified, Depository Agent to disseminate to the Individual Sub-Account Holder notice of any meeting of the Issuer or any meeting of any class of members of the Issuer or holders of the Deposited Securities, and notify the Individual Sub-Account Holder of the right of the Individual Sub-Account Holder to be appointed as proxy to attend and vote at such meeting.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.2(b)	Unless the Individual Sub-Account Holder has expressly opted out of being so notified, Depository Agent to disseminate to the Individual Sub-Account Holder notice of any corporate action event that carries a right of election.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.2(c)	Depository Agent to appoint the Individual Sub-Account Holder as the Depository Agent’s proxy to attend and vote at any meeting of the Issuer or meeting of any class of members of the Issuer or holders of the Deposited Securities, if requested by the Individual Sub-Account Holder to do so.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.2(d)	Depository Agent to submit to the Issuer any voting instruction received from the Individual Sub-Account Holder.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.2(e)	Depository Agent to submit to the Issuer any corporate action election received from the Individual Sub-Account Holder.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.2(f)	Depository Agent to assist the Individual Sub-Account Holder to requisition or call a meeting of the Issuer, or to requisition the circulation of resolutions, if requested by the Individual Sub-Account Holder to do so.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.3	Depository Agent to give each Individual Sub-Account Holder sufficient time, in any case within such timelines as the Depository may prescribe, to give the instructions or make the elections or requests contemplated in Rules 6.8.2(c) to (e).	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.8.4	Depository Agent to reflect the aggregate value of votes “for” and the aggregate value of votes “against” in such manner as the Depository may specify in its submission of voting instructions received from Individual Sub-Account Holders to the Issuer.	Compoundable	$500	$1,000	$2,000	N.A.
6.8.5	Depository Agent to, prior to onboarding a Individual Sub-Account Holder, disclose all fees chargeable by the Depository Agent, and notify Individual Sub-Account Holders of any changes to such fees.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.9	Business Continuity Requirements
6.9.1	Depository Agent to maintain adequate business continuity arrangements.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.9.2	Depository Agent to document the business continuity arrangements in a business continuity plan.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.9.3	Depository Agent to test and review the business continuity plans regularly.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.10	Outsourcing Conditions
6.10.1	Depository Agent to comply with any guidance or requirements on outsourcing as prescribed by MAS or the Depository.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.10.2	Depository Agent to have in place adequate audit trails of the activities performed by the service provider.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.10.3	Depository Agent to ensure that the service provider provides the Depository with any information, including records of the work done by the service provider and any other records maintained by the service provider, at the Depository’s request.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.10.4	Depository Agent to ensure that the service provider provides the Depository access to all relevant records and systems and that the Depository is able to perform on-site inspections of the outsourced operations in the same way as if the outsourced operations were residing in the Depository Agent and without any costs to the Depository.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.10.5	Depository Agent to inform the Depository promptly of any disciplinary actions taken against the service provider, or any issues raised by internal or external auditors or any authority that regulates the service provider pertaining to the activities outsourced to the service provider.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.10.6	Depository Agent to ensure that any internal audit requirements prescribed by the Depository are also complied with in relation to the outsourced operations.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.11	Internal Control Systems
6.11	Depository Agent to establish and maintain adequate internal control systems, commensurate with the nature, scale and complexity of the business of the Depository Agent.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.
6.12	Reporting of Adverse Events
6.12	Depository Agent to immediately inform the Depository of the occurrence of any of the prescribed events.	Compoundable	$2,000 – $4,000	$4,000 – $7,000	$7,000 – $10,000	N.A.

Added on 15 July 2026.