The decision whether to register a representative or to revoke a registration depends on the following:
1. The seriousness or severity of circumstances surrounding the person’s failure to meet a specific criteria;
2. The relevance of the unfulfilled criteria in relation to the duties that are, or are
to be performed and the responsibilities that are, or are to be assumed by the person; and
3. The amount of time that has lapsed since the person’s failure to meet a specific criteria.

The status of an appointed, provisional or temporary representative in respect of any regulated activity is valid until it ceases under the following circumstances:
1. The principal notifies MAS of such cessation;
2. The appointed representative has ceased to act as a representative for a continuous period of one month, and his principal has not notified MAS of his cessation as a representative;
3. MAS has revoked the status of the appointed representative;
4. The principal ceases to carry on business in that type of regulated activity; or
5. The licence of his principal lapses, the licence is revoked by MAS, or a prohibition order is issued by MAS against his principal prohibiting it from carrying out that type of regulated activity.

Registered Representatives (RRs) perform a sales and advisory function, rather than trade execution.
Registered Representatives are permitted to:
(a) Solicit customers, solicit or accept orders from customers, and give advice to customers for the purchase or sale of contracts; and
(b) In connection with the purchase or sale of contracts provide feedback on market sentiment or market conditions, quote prices, and provide confirmation to customers regarding orders which have been executed.

A Member must immediately notify SGX if any of its Approved Traders or Registered Representatives have:
1. Ceased to be a representative under the SFA or had its exemption from registration in the Public Register of Representatives withdrawn
2. Become of unsound mind;
3. Become bankrupt;
4. Become subject to a composition or scheme of arrangement with his creditors, whether in or out of Singapore;
5. Any judgment debt entered against them which remains unsatisfied in whole or in part; or
6. Ceased to transact business through the Member or ceased to be sponsored by the Member.

SFA 99D(8), 99E(4), 99F(4)
Offences are punishable with a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.

SFA 99D(3), 99E(4), 99F(4)
Offences are punishable with a fine not exceeding $50,000.

SGX-DT may suspend an Approved Trader or Registered Representative for a period of up to 1 year if:
1. The sponsoring Member’s trading privileges are suspended;
2. His application for registration contains material errors or omissions or is misleading in a material respect;
3. He is found guilty in a court of law of misconduct or wilful neglect in a manner contrary to the SFA;
4. He is convicted of an offence involving fraud or dishonesty;
5. He files a petition for bankruptcy;
6. His licence from or registration with the MAS is suspended;
7. Conditions or restrictions are placed by MAS on him, where he was previously exempted from licensing or registration;
8. He fails to pay any fee, levy or charge as prescribed by the Exchange from time to time; or
9. He acts in a manner which impairs the goodwill or reputation of SGX or any markets; or impairs the operation of a fair, orderly and transparent market by SGX.

Members, Approved Traders and Registered Representatives are required to observe high standards of integrity, market conduct and fair dealing in all trading activities. They must also act with due skill, care and diligence and refrain from any act or course of conduct which is likely to harm the reputation of the financial markets or institutions.

The advertisements must:
1. Contain only information that the advertiser knows or believes to be true;
2. Not make any promise of profits. If profits are mentioned, there must also be mention of the possibility of losses;
3. Not misrepresent the advertiser’s Membership, registration, or the privileges they enjoy; and
4. Not misrepresent the authorisation, licence or permission, if any, which they possess from the regulating bodies (such as MAS and SGX).

The advertisements must:
1. Not refer to specific profitable recommendations it made in the past. If past recommendations are referred to, the advertisement must:
(a) List ALL the recommendations, both profitable and unprofitable, that it made in at least the 12 months immediately before the date of the advertisements; and
(b) State the name of each instrument recommended, the date and nature of the recommendation, the market price at that time, the price at which the recommendation was to be acted upon, and the current market price of the instrument; and
(c) Contain a statement, in as large a font as the largest font used in the body of the advertisement, that explains that past results of instruments in the list does not guarantee similar results in the future.
2. Not directly or indirectly claim that any chart, formula, strategy or device
referred to in the advertisement can be used to determine which instruments to buy or sell, or when to buy or sell them, without disclosing its limitations and difficulties in usage.
3. Not claim that any report, analysis or other service will be provided free of charge, unless it is in fact provided, in its complete form, without any condition or obligation.
4. Not contain any inaccurate, misleading or exaggerated statement or presentation that is designed to exploit the audience’s lack of experience and knowledge.
5. Not claim that its abilities or qualifications have in any way been approved by the Authority.

Examples of SIPs listed on an exchange:
– Certain exchange traded funds and notes
– Structured warrants
– Futures
– Certificates

Examples of SIPs not listed on an exchange:
Structured notes (e.g. equity-linked structured notes, credit linked structured notes)
– Certain unit trusts
– Certain investment-linked life insurance policies

When conducting the CAR or CKA, a retail customer would be deemed to have sufficient knowledge if he:
1. Holds a diploma or has higher qualifications in accountancy, actuarial science, business / business administration / business management / business studies, capital markets, commerce, economics, finance, financial engineering, financial planning, computational finance and insurance;
2. Has professional finance-related qualification, such as CFA or ACCA;
3. For CAR: Has transacted in SIPs which are listed or quoted on a securities or futures exchange at least 6 times in the last 3 years; or
For CKA: Has invested or transacted in unlisted collective investment
schemes (CIS) or ILPs at least 6 times in the preceding 3 years; or in unlisted SIPs (excluding CIS and ILPs) at least 6 times in the preceding 3 years; or
4. Has a minimum of 3 consecutive years of working experience in the past 10 years, in the development of, structuring of, management of, sale of,
trading of, research on or analysis of investment products, or the provision of training in investment products. Work experience in accountancy, actuarial science, treasury or financial risk management activities will also be considered relevant experience.

If the customer intends to proceed to open a SIP trading, the CMS licence holder or exempt financial institution shall:
1. Inform the customer in writing of the outcome of the CAR;
2. Obtain the customer’s written confirmation that he still intends to proceed with the opening of the SIP trading account despite not being in possession of knowledge or experience in derivatives;
3. Explain to the customer the general features and risks associated with investing in derivatives and provide the customer a written statement of the explanation given; and
4. Inform the customer in writing that it is the customer’s responsibility to ensure that he understands any capital markets product(s) that he intends to transact using the SIP trading account.

A CMS licence holder or exempt financial institution shall document every CAR and CKA conducted for each customer. The documentation must include:
1. Information collected from a customer on his educational qualification, work experience and investment experience;
2. An assessment of the customer’s knowledge and experience in derivatives or unlisted SIPs, as the case may be;
3. The outcome of the CAR or the CKA; and
4. The approval of its senior management to open the customer’s SIP trading account, where applicable.

I & II.
Approved Traders (ATs) are permitted to execute trades for:
(a) His own account, in the case of an individual Trading Member;
(b) The House Account of his sponsoring corporate Member;
(c) A Customer Account on the instruction of a Registered Representative; or
(d) A Customer Account on the instruction of a customer, if the Approved Trader is also registered as a Registered Representative.

III & IV.
Prior to appointing an individual as
its representative, the CMS licence holder is expected to carry out the following due
diligence checks on the proposed representatives41:
1. Probity checks on representative’s identity by obtaining a copy of his current identity documentation (e.g. National Registration Identity Card, Foreign Identification Number or Passport) and verify his identity.
2. Probity checks of representative’s past records which includes conducting reference checks with the proposed representative’s previous employers to confirm that he has not been dismissed or asked to resign, and to ask if he has any material adverse record taken by the previous employer. CMS licence holders are also expected to check the Public Register of Representatives (refer to Section
– Probity checks on the representative’s financial status.

II & III.
Whether the person:
1. Has been refused the right or restricted in his right to carry on any trade,
business or profession for which a specific licence, registration or other authorisation is required by the law in any jurisdiction;
2. Has been the subject of any investigations or disciplinary proceedings or been issued a warning or reprimanded by MAS or any other regulatory authority, an operator of a market or clearing facility, any professional body or government agency, whether in Singapore or elsewhere;
3. Has been convicted of any offence or is being subject to any pending proceedings which may lead to such a conviction under any law in any jurisdiction;
4. Has any judgement debt (in particular that associated with a finding of fraud, misrepresentation or dishonesty) entered against the person in any civil proceedings or is a party to any pending proceedings which may lead to such a judgement under the law in any jurisdiction.

I & III.
To be eligible for registration as a Representative, an applicant must fulfill all the following conditions:
1. Be at least 21 years old.
2. Have a minimum education level equivalent to:
– At least 4 GCE ―O‖ Level credit passes; or
– At least 2 GCE ―O‖ Level credit passes if he has 3 continuous years of relevant working experience over the last 5 years.
3. Have satisfied the CMFAS examination requirements for those regulated activities he will deal in.
4. Be a fit and proper person, which includes:
– Possessing qualities of honesty, integrity and sound reputation;
– Competence and capability;
– Financial soundness, e.g. not being an undischarged bankrupt, whether in or out of Singapore.

I & IV.
Risk Warning Statement
The risk warning statement highlights the key risks that customers should be aware of when trading overseas-listed investment products, such as:
– Level of investor protection and safeguards afforded in the relevant foreign jurisdiction;
– Differences between the legal systems in foreign jurisdiction and Singapore;
– Tax implications, currency risks, and additional transaction costs that may be incurred;
– Exposure to counterparty and correspondent broker risks;
– Political, economic and social developments that may influence overseas markets.

II & IV.
2.6.5.1 Responsibility
Members are required to put in place internal controls to ensure that the Form BC4A has been properly approved by the Chief Executive Officer (“CEO”) or authorised senior executives (e.g. Deputy CEO, General Manager or Operations Manager) before submission. For operational reasons, the submission of Form BC4A may be delegated to senior executives who must be of at least a supervisory grade. Approved staff, including the authorised senior executives, should not be directly involved in trading activities. Despite this delegation, the primary responsibility for ensuring the accuracy of the Form BC4A submitted still falls on the CEOs of the respective Member firms.

III & IV.
A Risk Disclosure Statement highlights the risks associated with trading in leveraged instruments, including futures and options. The SFA prescribes Form 13 for use as the Risk Disclosure Statement. A Member must furnish the customer with a separate Risk Disclosure Statement, and obtain a signed and dated acknowledgement from a customer on the Risk Disclosure Statement, before the Member can proceed to allow the client to begin trading. The acknowledgement must state that the customer understands the highlighted risks and issues. The Risk Disclosure Statement, signed by the customer, must be delivered to the customer, and a copy kept by the Member in Singapore. Members are required to keep the signed copies of the Risk Disclosure Statements in Singapore.

I & II.
Information is not to be released to 3rd parties unless:
1. It is with the prior consent of the customer;
2. The disclosure is required for the effective execution of the customers’ order;
3. The disclosure is necessary for the operations and risk management of the intermediary and for the purpose of audit by internal and external auditors, lawyers, or consultants approved or engaged by the intermediary; and
4. The disclosure is required under any law or rules for investigating or prosecuting an offence alleged or suspected to have been committed under any written law.

II & III.
Any person who contravenes of shall be guilty of an offence and shall be liable on conviction:
1. In the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or
2. In any other case, to a fine not exceeding $250,000.

I & III.
Data protection is an aspect of privacy protection that deals with control over the collection, storage, accuracy, use and dissemination of personal
information. The purpose of data protection is to ensure that personal data is not used without the knowledge or consent of the individual concerned. The PDPA also aims to prevent the processing of incorrect or inaccurate personal data about a specific individual.

III & IV
Customer Instructions
A Member shall communicate directly, only with the customer, in regards to:
– Accepting and executing orders for the customer’s account; and
– Statements, contract notes, or any other information relating to the activities of that customer.
Unless Power of Attorney has been granted, a Member should only accept orders from a customer directly, and only execute trades in accordance with those orders.

I & II.
Potential limitations and risks of Internet trading
These include:
– The possibility of delays in order transmission and confirmation of order execution, and what to do in case of such delays;
– Not being able to withdraw erroneous orders in time due to the speed of electronic trading; and
– The danger of unauthorised access to a customer’s Internet Trading account and recommended preventive security measures in relation to matters such as the protection of passwords and leaving an Internet Trading screen unattended.

II & IV.
System functionalities and order management procedures
These relate to the functionality available in the Order Management System (OMS) and procedures for trading, including how and who to contact if customers face issues with the OMS. Some examples include:
– System access requirements;
– How to place, modify and withdraw orders;
– Types of trading controls e.g. types of error-prevention alerts and how to interpret system alerts; and
– Types of credit controls e.g. types of trading limits and how the trading limits are compute

I & IV.
Contract Specifications, which include:
 Contract size;
 Ticker symbol;
 Contract months;
 Minimum price fluctuation; and
 Settlement basis.

II & III.
Following a transaction, Members shall give its customers a contract note which contains the following information:
1. The name under which the Member carries on its business of trading in derivatives contracts, and the address of the principal place of business;
2. A statement informing the customer that the Member is taking the opposite side
of the customer’s trade, if the Member is doing so.
3. The name and address of the recipient of the contract note;
4. The date of the transaction;
5. The quantity and type of the derivative contract that was transacted;
6. The price per unit of the transaction;
7. The total amount of money involved in settling the transaction;
8. Any amounts that are to be added or deducted from the transaction;
9. The rate and amount of commission (if any) charged; and
10. The amount of all stamp duties or other duties or taxes payable in connection with the transaction.