12.11 Customer's and Remisier's Money
A Trading Member must comply with Part III, Divisions 2 and 4 of the Securities and Futures (Licensing and Conduct of Business) Regulations on customer's money. For the purpose of this Rule, "customer" includes a Remisier, unless otherwise specified.
Regulation 16(1)(b) of the Securities and Futures (Licensing and Conduct of Business) Regulations does not apply to a Remisier. A Trading Member must deposit all money received on account of a Remisier in a trust account.
A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 17 of the Securities and Futures (Licensing and Conduct of Business) Regulations for a customer or a Remisier as a trust account, or customer or Remisier account, as the case may be.
A Trading Member must deposit money received on account of customers in a separate trust account from Remisiers.
A Trading Member must not commingle money received on account of its customers or its Remisiers with its own funds. However, a Trading Member may deposit its own funds into a trust account under the circumstances specified in Regulation 23(1) of the Securities and Futures (Licensing and Conduct of Business) Regulations.
A Trading Member must not withdraw a Remisier's money from a trust account except to:—(1) pay the Remisier;(2) meet any amount due and payable by the Remisier to the Trading Member;(3) reimburse the Trading Member money advanced to the trust account, and any interest and returns that the Trading Member is entitled to, provided the withdrawal does not result in the trust account becoming under-funded; or(4) make a payment or withdrawal that is authorised by law.
A Trading Member must notify the Remisier of the withdrawal made under Rule 12.11.6 by the next business day.