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How clients' funds are safeguarded in Orient Futures Singapore
Regardless of whether you are a new or seasoned trader, one of the most important criterion to consider for all traders and investors before opening a trading account is the security of funds deposited. In fact, we believe everyone should carefully consider the security of your funds when evaluating the various brokerage firms.
As a retail client, when you deposit money into an Orient Futures International (Singapore) Pte. Ltd. (“Orient Futures Singapore”) account, you can be assured of the following:
- Your money is held in segregated client bank (independent trust) accounts at established regulated banks.
- Your money is separated (not co-mingled) with Orient Futures Singapore’s own money.
- Orient Futures Singapore does not use your money for the firm’s business activities.
- Your money is protected from creditors in the unlikely event that Orient Futures Singapore goes into liquidation.
- Orient Futures Singapore holds a Capital Market Services (CMS) license issued by the Monetary Authority of Singapore (MAS) and fully complies with MAS regulations in the conduct of all our business.
What is a “segregated account”?
A segregated account is an account that is separated. Orient Futures Singapore holds your money on your behalf in an account separated from the company’s own money and assets.
Having a segregated account means your money is
- dealt with as belonging to you,
- not mixed but are maintained separately from any other account in which we deposit our own moneys,
- used for purposes agreed to you,
- not mixed with other funds, or used as margin or guarantee for, or to secure any transaction of, or to extend the credit of, any person other than yourself as the client.
This is in accordance to sections 16, 17, 26 and 27 of the Securities and Futures (Licensing and Conduct of Business) Regulations issued by the Monetary Authority of Singapore and section 104 of the Securities and Futures Act (‘SFA”) which requires that a CMS license holder handles clients’ monies and assets in line with regulations prescribed by the MAS.
What does Orient Futures Singapore do with my money?
As a MAS regulated brokerage, we are subject to the rules on the protection of client’s money and assets given in the SFA and the Securities and Futures (Licensing and Conduct of Business) Regulations. These rules govern how we may hold and handle moneys that belong to our clients. Orient Futures Singapore adhere to these rules at all times.
What happens to the money I deposit with Orient Futures Singapore?
Orient Futures Singapore deposit funds received from our clients into trust accounts no later than the business day following the day on which the funds are received, or the day on which we are notified of the receipt of such funds, whichever is later. The funds are deposited in a bank licensed under the Banking Act (Cap. 19) or a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186).
To ensure the safety of your money, we assess the suitability of the Bank or financial institution with which the trust account is to be opened. Even after opening the account, we periodically assess the suitability of the Bank or financial institution that maintains the trust account. If a Singapore-based bank defaults, clients’ moneys held in the trust account will be dealt with in accordance with applicable Singapore laws and regulations.
Where Orient Futures Singapore opens a trust account with an intermediary broker, we will give written notice and obtain an acknowledgment from the intermediary broker that —
- all moneys deposited in the trust account are held on trust by us for our customers and the counterparty cannot exercise any right of set-off against the moneys for any debt owed by us to them; and
- the account is designated as a trust account, which shall be distinguished and maintained separately from any other account in which we deposit our own moneys.
Orient Futures Singapore may deposit money received from clients, with an approved clearing house or facility, for the purpose of
- entering into, facilitating the continued holding of a position in, or facilitating a transaction in, any capital markets products on behalf of the client,
- clearing or settlement of any capital markets products on the clearing facility for the client,
- any other purpose under the business rules and practices of the approved clearing house or facility.
What happens to my money if Orient Futures Singapore goes into liquidation?
Orient Futures Singapore is required under Singapore laws to ensure that money received from clients as well as clients’ assets are separated from our own money and assets.
This means that in the unlikely event that Orient Futures Singapore goes into liquidation, your money and assets are excluded from the firm’s own money and assets. Your money and assets remain yours and are protected as they cannot be used for payment for the firm’s debts. This is in accordance with Section 104A of the SFA.
When placing your money with a broker, you need to ensure your broker not only adheres to strict regulatory standards but also is financially strong. As a client of Orient Futures Singapore, you can be assured of both.
Orient Futures International (Singapore) Pte. Ltd. (“Orient Futures Singapore”) is a direct wholly owned subsidiary of Shanghai Orient Futures Co., Ltd and an indirect wholly owned subsidiary of Orient Securities Co., Ltd., which is listed on the Shanghai Stock Exchange (SSE) and the Hong Kong Stock Exchange (HKEX), and a constituent of SSE 50 Index. Orient Securities Co., Ltd. is partly owned by Shenergy Group, which is a Shanghai State-owned Enterprise.
To learn more about Orient Futures Singapore and our strong parentage within the Orient Group, click here.
