Singapore Broker-dealer License

Introduction

Broker-dealers are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the SFA.

The scope of a broker-dealer's activities may include:

• Acquiring, disposing, subscribing or underwriting capital markets products on behalf of any person;
• Inducing any person to acquire, dispose, subscribe or underwrite capital markets products;
• Providing financing to another person to buy or subscribe for capital markets products; and/or
• Providing custodial services for securities.

Legal Requirements

Categories

Entity Requirements

The entity making the application is a Singapore:
a) A company,
b) Sole proprietor
c) Foreign owned company,
d) Partnerships,

Director’s Requirements

At least one Executive Director of the applicant is a Singapore citizen or permanent resident.

Shareholder requirements

Every Singapore License will need at least one shareholder.

Compliance Officer

The License must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.

Local Office

The applicant must have premises in the island acceptable to the commission prior to operating the business. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.

Ongoing Obligations

• Annual obligations: Maintain such accounting records and financial statements available for examination by the Registrar or any person authorized under his hand at its principal place of business or registered office in Labuan;
• Notify Minister within a reasonable period of any of the following changes:
  • Changes in any Key Functionary in the Fund.
  • Change in the registered office address
  • Change of its agent in Labuan
  • Change in name or address of-
    • each director of the fund, if the fund is a company
    • each trustee of the fund, if the fund is a trust
    • Each general partner of the fund, if the fund is a limited partnership.
    • Appointment, resignation or removal of a Director or officer
• The License must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.