MAS Reprimands IG Asia Pte Ltd for Contravention of Regulations 24A(1) and 24A(2) of the Securities and Futures (Financial and Margin Requirements for the Holders of Capital Markets Services Licences) Regulations (RG.13) ["SF(FMR)REGS"]

1       On 5 July 2012, MAS reprimanded IG Asia Pte Ltd [“IG Asia”] for contravention of regulations 24A(1) and 24A(2) of the SF(FMR)REGS.

2       Regulation 24A(1) of the SF(FMR)REGS states that the holder of a licence who enters into a contract for differences with its customers shall obtain margin from each customer, in the form of acceptable collateral, for the purpose of trading in contracts for differences. Regulation 24A(2) of the SF(FMR)REGS further states that for the purpose of this regulation, margins deposited by customers with the holder of a licence shall be determined in accordance with Table 18 of the Fourth Schedule to the SF(FMR)REGS and such other requirements as the Authority may from time to time specify by notice in writing.  

3       IG Asia has contravened regulations 24A(1) and 24A(2) of the SF(FMR)REGS as it had failed to obtain the prescribed margin rate set out in Table 18 of the Fourth Schedule to the SF(FMR)REGS from its customers for the period of 17 June 2011 to 1 March 2012.

4       IG Asia has confirmed to MAS that they have since put in place policies and procedures to prevent future recurrence.

MAS expects all capital markets services licensees to ensure that they comply with the provisions of the Securities and Futures Act, its regulations and all applicable regulatory requirements at all times.

Last Modified on 26/11/2016