Regulatory Notice 3.3.1 — Customer Account and Know-Your-Customer Requirements

Issue Date Cross Reference Enquiries
Added on
22 September 2006.
Rule 3.3.1 Please contact Member Supervision:

Facsimile No : 6538 8273
E-Mail Address:

1. Introduction

1.1 This Regulatory Notice explains the circumstances, conditions and operational procedures that a Member shall observe with respect to the know-your-customer requirements set forth in Rule 3.3.1.

2. Know-Your-Customer Requirements

2.1 Individual Customer Account

Before opening an individual Customer Account, a Member shall:
(a) obtain particulars of the Customer (and any person authorised to trade for the Customer), including the full name, a copy of the identity card/passport, specimen signature, residential and mailing addresses, telephone numbers, occupation, and the name, address and telephone number of the Customer's employer, and investment objectives (if applicable); and
(b) take suitable steps to verify the Customer's identity and intention if the Customer does not open the account in person.
2.2 Corporate Customer Account

Before opening a corporate Customer Account, a Member shall:
(a) obtain particulars of the Customer, including the full name, registered and mailing addresses, names and signatures of persons authorised to trade, and investment objectives (if applicable);
(b) obtain a certified true copy of the certificate of incorporation of the Customer; and
(c) obtain either (i) or (ii) below, failing which it must note in writing the basis upon which it believes that the Customer may open the account and engage in transactions and that the persons acting for the Customer have been duly authorised to trade on the Customer's behalf:
(i) a copy of the directors' resolution of the Customer approving the opening of a trading account with the Member and empowering specific directors and officers to:
(A) trade in futures and options in the Customer Account; and
(B) execute all documentation for trading and settlement in the account;
(ii) a power of attorney (in English) certified by a notary public, authorising identified persons to open a trading account and trade on behalf of the Customer.
2.3 Joint Account
(a) A Member may allow Customers to open a joint trading account if:—
(i) each joint account holder is at least 21 years old; and
(ii) no joint account holder is an undischarged bankrupt.
(b) A joint account may be operated by not more than two (2) individuals. However, if it is an estate account, it may be operated by all the personal representatives.
(c) A Member shall maintain the following information:
(i) particulars of each joint account holder;
(ii) the names of persons authorised to give trading orders and settlement instructions and receive monies and assets from the Member;
(iii) the names of persons to whom payments by the Member are to be made; and
(iv) details of any accounts held in an individual capacity by a joint account holder.
(d) A Member shall require each joint account holder to specify whether the joint account holder is jointly or severally liable for all debts incurred in a joint account.