Whole Section

  • 4.15 Opening of Customer Accounts

    • 4.15.2

      Prior to opening a customer account, a Trading Member shall satisfy itself that it has:

      (a) obtained adequate particulars of each customer;
      (b) verified the identity of each customer, and in the case of a non-individual customer verified that it is validly constituted and that the person opening the account has the requisite authority to do so, and in the case of an agency customer, verified the identity of the principal and the customer's authority to trade for its principal;
      (c) agreed with the customer procedures for the communication of trading instructions to guard against unauthorised trading (if applicable); and
      (d) understood each customer's risk appetite and investment objectives (if applicable),

      in accordance with applicable know-your-customer laws and regulatory requirements.

      Refer to Practice Note 4.15.2(a) and (b) and Practice Note 4.15.2(d).

      Added on 3 June 20193 June 2019.

    • 4.15.3

      Before opening a customer account for a customer under the age of 21, a Trading Member shall assess the customer's suitability to trade and disclose the risks of trading to the customer.

      Refer to Practice Note 4.15.3.

      Added on 3 June 20193 June 2019.

    • 4.15.4

      Joint Customer Account

      (a) A Trading Member may allow customers to open a joint account carried on its books only if:
      (i) a joint securities account with CDP is opened by the joint account holders;
      (ii) each joint account holder is at least 18 years old; and
      (iii) no joint account holder is an undischarged bankrupt.
      (b) A joint customer account may be operated by not more than two individual customers. However, if it is an estate account, it may be operated by all personal representatives acting on behalf of the estate of the deceased.
      (c) In addition to the matters set out in Rule 4.15.2, a Trading Member must obtain the following information:
      (i) the names of persons authorised to give trading orders and settlement instructions to, and receive scrip from, the Trading Member;
      (ii) the names of persons to whom payments by the Trading Member are to be made; and
      (iii) details of any customer accounts carried on the books of the Trading Member held in an individual capacity by a joint customer account holder.
      (d) A Trading Member must require each joint customer account holder to specify whether the joint customer account holder is jointly, severally, or jointly and severally liable for all debts incurred in a joint customer account.

      Added on 3 June 20193 June 2019.

    • 4.15.5

      Approval of Customer Accounts

      (a) At least one member of senior management or delegate staff (whether of the Trading Member or the Trading Member's related corporation or otherwise) independent of the Trading Member's sales or dealing, must approve the opening of a customer account carried on the books of the Trading Member.
      (b) The approval must:
      (i) be given before the execution of the first trade for the customer;
      (ii) be in writing (which includes secured electronic record); and
      (iii) form part of the permanent records of the Trading Member.

      Added on 3 June 20193 June 2019.