MAS Reprimands Newedge Financial Singapore Pte Ltd for Contravention of Regulation 18 of the Securities and Futures (Licensing and Conduct of Business) Regulations [“SF(LCB)R”]

1          On 8 January 2014, MAS reprimanded Newedge Financial Singapore Pte Ltd [the “Company”] for contravention of Regulation 18 of the SF(LCB)R.

2          Regulation 18 of the SF(LCB)R states that where the holder of a capital markets services licence opens a trust account with a financial institution [“FI”] specified in regulation 17(1)  , the holder shall, before depositing moneys received on account of its customer in the account, give written notice to the FI and obtain an acknowledgment from the FI that -

(a)   all moneys deposited in the trust account are held on trust by the holder for its customer and the FI cannot exercise any right of set-off against the moneys for any debt owed by the holder to the FI; and

(b)   the account is designated as a trust account, or a customer’s or customers’ account, which shall be distinguished and maintained separately from any other account in which the holder deposits its own moneys.

3          The Company has contravened regulation 18 of the SF(LCB)R as it had failed to give written notice to and obtain an acknowledgement from the FI before depositing moneys received on account of its customers into a trust account with the FI on 19 March 2012. In this regard, the Company has obtained the relevant acknowledgement from the FI on 10 May 2012.

MAS expects all holders of capital markets services licences to comply with  the  provisions of the Securities and Futures Act (Cap. 289), its regulations and all applicable regulatory requirements at all times.

Last Modified on 26/11/2016