MAS IMPOSES A COMPOSITION AMOUNT OF $7,500 ON CLSA SINGAPORE PTE LTD FOR CONDUCTING REGULATED ACTIVITY WITHOUT A LICENCE

1  On 31 October 2006, CLSA Singapore Pte Ltd [CLSAS] paid a composition amount of $7,500 for the contravention of section 82 of the Securities and Futures Act. CLSAS  conducted business in the regulated activity of providing custodial services for securities without the relevant Capital Markets Services[CMS] licence between 1 October 2002 and 20 November 2005.

2  CLSAS had provided custodial services for securities through sub-accounts maintained by the company for its customers in its capacity as a depository agent of the Central Depository Pte Ltd.

3.  At the time of the breach, CLSAS held a CMS licence for dealing in securities and trading in futures contracts.  CLSAS had since applied to add the regulated activity of providing custodial services for securities to its CMS licence.  The application was approved on 15 November 2005.

CMS licence holders should be mindful of the regulatory requirements when they take on new business activities, including additional regulated activities.  MAS expects CMS licence holders  and their senior management to put in place adequate internal controls to comply with all relevant legal requirements.