Therefore, it has proposed that FIs record all communications - including those on personal devices - between their trading representatives and individuals instructing the O&T for all capital-market products in a customer's account. This should be done even if communication does not result in a transaction. All these records should be kept for five years.
As mobile self-directed trading has become more common lately, the MAS has also proposed the introduction of client device identification. With this measure in place, FIs will need to record the device ID for O&Ts via mobile-trading applications.
Central Registrar for Cash Payments
At present, a number of FIs allow payments in trading accounts to be made in cash and/or by third parties. Although legitimate reasons exist for such transactions, «cases of market abuse have shown that individuals who intended to hide a trail of illicit trading activities have often exploited FIs' practices and policies on account funding,» MAS notes.
Therefore, the MAS has proposed that FIs maintain a centralized, electronic register of all payments received in cash or from third parties by the FIs into their customers' accounts. A register of records must be produced to the MAS or other law enforcement agencies when requested.
Consultation Period
The proposed requirements, which will be set out in a new Notice on Controls against Market Abuse, apply to licensed and exempt FIs in Singapore that undertake dealing activities in capital markets products.
The MAS invites comments from FIs and the public on these proposals till 5th September.
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