Commodity broker’s licence
Open ↗12.—(1) No person, whether as principal or agent, may —(a)
carry on business as a commodity broker; or
(b)
hold the person out as carrying on such a business, unless the person —(i)
is licensed as a commodity broker under this Act; and
(ii)
trades in accordance with the business rules and practices of a commodity market on which the trading takes place.
(2) As from 8 October 2018, subsection (1) ceases to apply to any person who commences business as a commodity broker on or after that date.[4/2017]
(3) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 3 years or to both.
Other licences
Open ↗13.—(1) Subject to section 14A, no person may act as, or hold the person out as —(a)
a commodity broker’s representative;
(b)
a commodity trading adviser;
(c)
a commodity trading adviser’s representative;
(d)
a commodity pool operator; or
(e)
a commodity pool operator’s representative,
unless the person is the holder of a licence granted under this Part that authorises the person to act as such.
(2) As from 8 October 2018, subsection (1) ceases to apply to any person who —(a)
in relation to subsection (1)(a), is a commodity broker’s representative of a commodity broker mentioned in section 12(2) who does not hold a transitional licence;
(b)
in relation to subsection (1)(b), commences business as a commodity trading adviser on or after that date;
(c)
in relation to subsection (1)(c), is a commodity trading adviser’s representative of a commodity trading adviser mentioned in paragraph (b) who does not hold a transitional licence;
(d)
in relation to subsection (1)(d), commences business as a commodity pool operator on or after that date; or
(e)
in relation to subsection (1)(e), is a commodity pool operator’s representative of a commodity pool operator mentioned in paragraph (d) who does not hold a transitional licence.[4/2017]
(3) A holder of a commodity broker’s licence is not required to hold a commodity trading adviser’s licence.
(4) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction —(a)
for an offence under subsection (1)(b) or (d) to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 3 years or to both;
(b)
for an offence under subsection (1)(a), (c) or (e) to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both.
(5) In this section, “transitional licence” has the meaning given by section 66.[4/2017]
Licence for spot commodity trading
Open ↗13A.—(1) Subject to section 14A, no person may act as, or hold the person out as —(a)
a spot commodity broker;
(b)
a spot commodity broker’s representative;
(c)
a spot commodity pool operator; or
(d)
a spot commodity pool operator’s representative,
unless the person is the holder of a licence granted under this Part that authorises the person to act as such.
(2) The Board may, with the approval of the Minister, make regulations for or with respect to —(a)
the activities of, and standards to be maintained by, spot commodity brokers, spot commodity broker’s representatives, spot commodity pool operators and spot commodity pool operator’s representatives;
(b)
accounts or other records to be kept by spot commodity brokers and spot commodity pool operators;
(c)
the powers of the Board in examining any accounts or records kept by spot commodity brokers and spot commodity pool operators, including the appointment of an auditor to audit the accounts or records;
(d)
the segregation of customer’s funds by spot commodity brokers; and
(e)
the powers of the Board —(i)
to order the production of any books, accounts or records kept by spot commodity brokers and spot commodity pool operators;
(ii)
to order the provision of any information relating to the business of spot commodity brokers and spot commodity pool operators;
(iii)
to carry out investigations with respect to any contravention against this Act; and
(iv)
to issue directions to any spot commodity broker, spot commodity broker’s representative, spot commodity pool operator or spot commodity pool operator’s representative to cease contravention of any provision in this Act.
(3) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction —(a)
for an offence under subsection (1)(a) or (c), to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 3 years or to both; or
(b)
for an offence under subsection (1)(b) or (d), to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both.
Power of Board to grant licences and impose conditions, etc.
Open ↗14. The Board may grant or renew a licence under this Part subject to such conditions or restrictions as it thinks fit and for such period as the Board may determine.
Exemption from this Part
Open ↗14A.—(1) Subject to such conditions as the Board may impose, the persons specified in the Schedule are exempted, to the extent specified in the Schedule, from any provision of this Part.
(2) The Board may, by order in the Gazette, amend the Schedule.
Grounds for refusal to grant or renew licences
Open ↗15.—(1) Where an applicant is an individual, the Board may refuse to grant or renew a licence under this Part on the ground that —(a)
the applicant has not provided the Board with such information relating to him or her or any person employed by or associated with him or her for the purposes of his or her business, and to any circumstances likely to affect his or her method of conducting business, as may be prescribed under this Act;
(b)
the applicant is an undischarged bankrupt or has made a composition or arrangement with his or her creditors;
(c)
it appears to the Board that, by reason of the applicant, or any person employed by or associated with him or her for the purposes of his or her business, having been convicted, whether in Singapore or elsewhere, of an offence the conviction for which involved a finding that he or she 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;
(d)
the Board reasonably believes that there may be any circumstance that is likely to lead to the improper conduct of business by, or the reflection of discredit on the method of conducting such business by, the applicant or any person employed by or associated with him or her for the purpose of his or her business;
(e)
the applicant is, in the view of the Board, not a fit and proper person to be licensed;
(f)
the Board is not satisfied that the educational or other qualifications or experience of the applicant would enable him or her to carry out all the duties of a licensee;
(g)
the Board has reason to believe that the applicant will not be able to perform the functions of a licensee in an efficient, honest and fair manner;
(h)
the Board has reason to believe that the applicant may not be able to act in the best interests of his or her customers or subscribers, having regard to his or her reputation, character, financial integrity or reliability;
(i)
the financial standing of the applicant is, in the view of the Board, unsatisfactory;
(j)
the past performance or expertise of the applicant is, in the view of the Board, unsatisfactory; or
(k)
the Board is of the opinion that it is in the public interest to do so.
(2) Where an applicant is a corporation, the Board may refuse to grant or renew a licence under this Part on the ground that —(a)
the applicant has not provided the Board 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;
(b)
the applicant has at any time prior to the application entered into any composition or arrangement with its creditors;
(c)
it appears to the Board 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 or she 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;
(d)
it appears to the Board that, by reason of any other circumstances 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;
(e)
the financial standing of the applicant or its substantial shareholder or the manner in which its business is conducted is, in the view of the Board, unsatisfactory;
(f)
the record of past performance or expertise of the applicant is, in the view of the Board, unsatisfactory, having regard to the nature of the business which the applicant may carry on under the licence;
(g)
the Board reasonably believes that there may be any circumstance that is likely to lead to the improper conduct of business by, or the reflection of discredit on the method of conducting such business by, the applicant or its substantial shareholder or any of its directors, officers or employees; or
(h)
the Board is of the opinion that it is in the public interest to do so.
(3) Despite anything in this Part, the Board may refuse to grant or renew a licence under this Part where the applicant fails to meet such minimum financial requirements as are prescribed by the Board or provided in such business rules of a commodity market as have been approved by the Board.
(4) In subsection (2), “substantial shareholder”, in relation to an applicant which is a body corporate, has the meaning given by the Companies Act 1967.
Regulations relating to licences
Open ↗16. The Board may, with the approval of the Minister, make regulations —(a)
for the form and manner in which an application for a licence or for the renewal of a licence under this Part is to be made;
(b)
prescribing fees payable to the Board in respect of the licences;
(c)
requiring such information as it considers necessary in relation to the application;
(d)
for the imposition of any conditions or restrictions as it thinks fit;
(e)
prescribing the appropriate standards with respect to the qualifications, experience and training of applicants for licences under this Part;
(f)
for establishing and maintaining a register of licensed persons; and
(g)
for requiring the holder of a licence under this Part to notify the Board of such change of particulars and information as may be prescribed.
False statements
Open ↗17. A person who, in connection with an application for a licence or for the renewal of a licence, wilfully makes a statement which is 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 12 months or to both.
Revocation of licence
Open ↗18.—(1) A licence is 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) Where a licensed person is an individual, the Board may revoke a licence —(a)
on any ground on which the Board may refuse to grant a licence under section 15(1) or (3);
(b)
if an enforcement order in respect of the licensed person has not been satisfied;[Act 25 of 2021 wef 01/04/2022]
(c)
if the licensed person fails or ceases to carry on business for which he or she was licensed;
(d)
if, in the case of a representative, the licence of the commodity broker, commodity trading adviser or commodity pool operator, in relation to whom the licence was granted, is revoked;
(e)
if the Board has reason to believe that the licensed person has not performed his or her duties efficiently, honestly or fairly; or
(f)
if the licensed person contravenes or fails to comply with any of the conditions or restrictions applicable in respect of the licence.
(3) Where a licensed person is a corporation, the Board may revoke a licence —(a)
on any ground on which the Board may refuse to grant a licence under section 15(2) or (3);
(b)
if it is being or will be wound up;
(c)
if an enforcement order in respect of it has not been satisfied;[Act 25 of 2021 wef 01/04/2022]
(d)
if it has entered into any composition or arrangement with its creditors;
(e)
if it fails or ceases to carry on business for which it was licensed;
(f)
if the Board has reason to believe that the licensed person, or any of its directors or employees, has not performed its, his or her duties efficiently, honestly or fairly; or
(g)
if the licensed person contravenes or fails to comply with any of the conditions or restrictions applicable in respect of the licence.
(4) The Board may revoke the licence of a person at the request of the person.
(5) The Board must not revoke a licence under subsection (2) or (3) without first giving the person an opportunity of being heard.
Powers of Board in cases of misconduct, etc.
Open ↗19.—(1) The Board 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 the licensed person or to reflect discredit on the method of conducting the licensed person’s business.
(2) If, after inquiring into an allegation under subsection (1) against a licensed person, the Board is of the opinion that the allegation is proved, the Board 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 Board may determine; or
(c)
reprimand the person.
(3) The Board must, 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 Board 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 written order, require the person who made the allegation to pay any costs and expenses involved in the inquiry.
(5) In this section, “misconduct” means —(a)
any failure to comply with the requirements of this Act or any regulations made under 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.
Effect of revocation or suspension of licence
Open ↗20.—(1) A person whose licence is revoked under section 18 or revoked or suspended under section 19 is, for the purposes of this Part, deemed not to be licensed from the date that the Board revokes or suspends the licence, as the case may be.
(2) A revocation or suspension of a licence of a person does not operate so as to —(a)
avoid or affect any agreement, transaction or arrangement relating to the trading in commodity contracts entered into by the 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.
Appeal against refusal to license, etc.
Open ↗21. Where —(a)
the Board refuses to grant or renew a licence under section 15;
(b)
the Board revokes a licence under section 18; or
(c)
the licence is revoked or suspended, or a licensed person is reprimanded, under section 19,
any person who is aggrieved by the decision of the Board may, within one month after the person is notified of the decision, appeal to the Minister whose decision is final.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
