On 20/05/2013,
you requested for the version in force on 20/05/2013
incorporating all amendments published on or before 20/05/2013.
The closest version currently available is that of 02/05/1986.
PART III
LICENCES
10. Where a person would, but for this section, be liable to a penalty for not being licensed under this Part, he shall not be so liable —
(a)
until the expiration of a period of 6 months after the commencement of this Part; or
(b)
where, before the expiration of that period, he applies to be licensed, until —
(i)
he is licensed; or
(ii)
his application to be licensed is refused.
11.
—(1) Subject to any regulations made under this Act, no person, whether as principal or agent, shall —
(a)
carry on business as a futures broker; or
(b)
hold himself out as carrying on such a business,
unless such person —
(i)
is licensed as a futures broker under this Act; and
(ii)
trades in accordance with the business rules and practices of an Exchange or futures market on which the trading takes place.
(2) Subsection (1) shall not apply to a person who is a floor broker.
(3) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $30,000 or to imprisonment for a term not exceeding 3 years or to both.
12.
—(1) Subject to any regulations made under this Act, no person shall act as, or hold himself out as —
(a)
a futures broker’s representative;
(b)
a futures trading adviser;
(c)
a futures trading adviser’s representative;
(d)
a futures pool operator; or
(e)
a futures pool operator’s representative,
unless he is the holder of a licence issued under this Part that authorises him to act as such.
(2) The holder of a futures broker’s licence shall not be required to hold a futures trading adviser’s licence.
(3) (a) A futures broker’s licence and a futures pool operator’s licence shall only be granted to a corporation;
(b)
A futures trading adviser’s licence may be granted to an individual or a corporation; and
(c)
A futures broker’s representative’s licence, a futures trading adviser’s representative’s licence and a futures pool operator’s representative’s licence may only be granted to an individual.
(4) Any person who contravenes subsection (1)(b) and (d) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $30,000 or to imprisonment for a term not exceeding 3 years or to both, and any person who contravenes subsection (1)(a), (c) and (e) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or to both.
13.
—(1) An application for a licence or for the renewal thereof shall be made to the Authority in such form and manner as may be prescribed and shall be accompanied by the prescribed fee and, in the case of an application for renewal of a licence, shall be made within one month before the expiry of the licence.
(2) The Authority may require an applicant to provide it with such further information as it considers necessary in relation to the application.
(3) The Authority shall not refuse to grant or renew a licence without first giving the applicant an opportunity of being heard.
14. The Authority may refuse to grant or renew a licence under this Part —
(a)
in the case of an applicant who is an individual, on the grounds that —
(i)
the applicant has not provided the Authority with such information relating to him or any person employed by or associated with him for the purposes of his business, and to any circumstances likely to affect his method of conducting business, as may be prescribed under this Act;
(ii)
the applicant is an undischarged bankrupt or has committed an act of bankruptcy within the meaning of the Bankruptcy Act (Cap. 18) or has made a composition or arrangement with his creditors;
(iii)
it appears to the Authority that, by reason of the applicant, or any person employed by or associated with him for the purposes of his business, having been convicted, whether in Singapore or elsewhere, of an offence the conviction for which involved a finding that he acted fraudulently or dishonestly, or having been convicted of an offence under this Act, or having committed a breach of any regulations made under this Act relating to licensed persons, the applicant is not a fit and proper person to be licensed; or
(iv)
it appears to the Authority that, by reason of any other circumstances whatsoever which either are likely to lead to the improper conduct of business by, or reflect discredit on the method of conducting the business of, the applicant or any person employed by or associated with him for the purpose of his business, the applicant is not a fit and proper person to be licensed;
(b)
in the case of an applicant that is a corporation, on the grounds that —
(i)
the applicant has not provided the Authority with such information relating to it or any person employed by or associated with it for the purposes of its business, and to any circumstances likely to affect its method of conducting business, as may be prescribed under this Act;
(ii)
the applicant has at any time prior to the application entered into any composition or arrangement with its creditors;
(iii)
it appears to the Authority that, by reason of the applicant, or any of its directors or employees, having been convicted, whether in Singapore or elsewhere, of an offence the conviction for which involved a finding that it or he acted fraudulently or dishonestly, or having been convicted of an offence under this Act, or having committed a breach of any regulations made under this Act relating to licensed persons, the applicant is not a fit and proper person to be licensed; or
(iv)
it appears to the Authority that, by reason of any other circumstances whatsoever which either are likely to lead to the improper conduct of business by, or reflect discredit on the method of conducting the business of, the applicant or any of its directors or employees, the applicant is not a fit and proper person to be licensed.
16.
—(1) Subject to subsection (2), a licence shall be in force for a period of one year, with effect from the date of its issue.
(2) A licence that has been renewed in accordance with the provisions of this Part shall continue in force for a period of one year next succeeding the date upon which but for its renewal it would have expired.
17.
—(1) The holder of a futures broker’s licence, futures trading adviser’s licence or futures pool operator’s licence shall, upon any change in the address of the principal place of business at which he carries on the business in respect of which the licence is held, forthwith notify the Authority of the new address in the prescribed form and, upon ceasing to carry on the business, shall forthwith so notify the Authority in writing.
(2) The holder of a representative’s licence who ceases to be a representative of a futures broker, futures trading adviser or futures pool operator in relation to whom the representative’s licence was issued shall forthwith so notify the Authority in writing.
18. A person who, in connection with an application for a licence or for the renewal of a licence, wilfully makes a statement false or misleading in a material particular, knowing it to be false or misleading, or wilfully omits to state any matter or thing without which the application is misleading in a material respect, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or to both.
19.
—(1) The Authority shall keep in such form as it thinks fit a register of the holders of current licences specifying —
(a)
in relation to each holder of a futures broker’s licence, futures trading adviser’s licence or futures pool operator’s licence —
(i)
his name;
(ii)
the address of the principal place of business at which he carries on the business in respect of which the licence is held; and
(iii)
where the business is carried on under a name or style other than the name of the holder of the licence, the name or style under which the business is carried on; and
(b)
in relation to each holder of a representative’s licence —
(i)
his name;
(ii)
the name of the futures broker, futures trading adviser or futures pool operator in relation to whom the licence was issued; and
(iii)
where the business of that futures broker, futures trading adviser or futures pool operator is carried on under a name or style, other than the name of the futures broker, futures trading adviser or futures pool operator, the name or style under which that business is carried on.
(2) Any person may, upon payment of the prescribed fee, inspect and take extracts from the register kept under subsection (1) and any such extract, purporting to be signed by the Authority, shall be admissible as evidence in any legal proceedings.
20.
—(1) A licence shall be deemed to be revoked, in the case of —
(a)
an individual, if the individual dies;
(b)
a corporation, if the corporation is wound up.
(2) The Authority may revoke a licence —
(a)
in the case of a licensed person who is an individual —
(i)
on any ground on which the Authority may refuse to license under section 14(a);
(ii)
if a levy of execution in respect of him has not been satisfied;
(iii)
if he fails or ceases to carry on business for which he was licensed;
(iv)
if, in the case of a representative, the licence of the futures broker, futures trading adviser or futures pool operator, in relation to whom the licence was granted, is revoked;
(v)
if the Authority has reason to believe that the licensed person has not performed his duties efficiently, honestly or fairly; or
(vi)
if the licensed person contravenes or fails to comply with any condition or restriction applicable in respect of the licence;
(b)
in the case of a corporation —
(i)
on any ground on which the Authority may refuse to grant a licence under section 14(b);
(ii)
if it is being or will be wound up;
(iii)
if a levy of execution in respect of it has not been satisfied;
(iv)
if it has entered into any composition or arrangement with its creditors;
(v)
if it fails or ceases to carry on the business for which it was licensed;
(vi)
if the Authority has reason to believe that the licensed person, or any of its directors or employees, has not performed their duties efficiently, honestly or fairly; or
(vii)
if the licensed person contravenes or fails to comply with any conditions or restrictions applicable in respect of the licence.
(3) The Authority may revoke the licence of a person at the request of that person.
(4) The Authority shall not revoke the licence under subsection (2) without first giving such person an opportunity of being heard.
21.
—(1) The Authority may inquire into any allegation that a licensed person is or has been guilty of any misconduct or is no longer a fit and proper person to continue to remain licensed by reason of any other circumstances which have led, or are likely to lead, to the improper conduct of business by him or to reflect discredit on the method of conducting his business.
(2) If after inquiring into an allegation under subsection (1) against a licensed person, the Authority is of the opinion that the allegation is proved, it may if it thinks fit —
(a)
revoke the licence of the person;
(b)
suspend the licence of the person for such period, or until the happening of such event, as the Authority may determine; or
(c)
reprimand the person.
(3) The Authority shall, at the hearing of an inquiry into an allegation under subsection (1) against a licensed person, give the person an opportunity of being heard.
(4) Where the Authority is satisfied, after making an inquiry into an allegation under subsection (1), that the allegation has been made in bad faith or that it is otherwise frivolous or vexatious, it may by order in writing require the person who made the allegation to pay any costs and expenses involved in the inquiry.
(5) For the purposes of this section, “misconduct” means —
(a)
any failure to comply with the requirements of this Act with respect to licensed persons; and
(b)
any act or omission relating to the conduct of business of a licensed person which is or is likely to be prejudicial to the public interest.
22.
—(1) A person whose licence is revoked under section 20 or revoked or suspended under section 21 shall, for the purpose of this Part, be deemed not to be licensed from the date that the Authority revokes or suspends the licence, as the case may be.
(2) A revocation or suspension of a licence of a person shall not operate so as to —
(a)
avoid or affect any agreement, transaction or arrangement relating to the trading in futures contracts entered into by such person, whether the agreement, transaction or arrangement was entered into before or after the revocation or suspension of the licence; or
(b)
affect any right, obligation or liability arising under any such agreement, transaction or arrangement.
23. Where —
(a)
the Authority refuses to grant or renew a licence under section 14;
(b)
the Authority revokes a licence under section 20; or
(c)
the licence is revoked or suspended, or a licensed person is reprimanded, under section 21,
any person who is aggrieved by the decision of the Authority may, within one month after he is notified of the decision, appeal to the Minister whose decision shall be final.
24. Notwithstanding anything in this Part, no person shall be licensed as a futures broker unless he meets and can continue to meet such minimum financial requirements as are prescribed by the Authority, either generally or specifically, or provided in such business rules of an Exchange as has been approved by the Authority.