Regulations for representatives
What are the requirements for personal dealing?
Representatives of a holder of a capital markets services licence to deal capital markets products that are listed specified products, to advise on corporate finance, for fund management, for real estate investment trust management, or for providing credit rating services must enter transactions in listed specified products in the securities register within 7 days after the transaction (reg. 4(1) SF(LCB)R).
In addition, all holders of a capital markets services licence and persons, as well as registered fund management companies, must mitigate conflicts of interest (reg. 13(b)(ix) SF(LCB)R). There are varying approaches in terms of administering personal account dealing policies to mitigate conflicts of interest ranging from pre-approvals to post-trade monitoring.
A financial institution may consider implementing a list of restricted securities, require internal approval of personal transactions before executing the order, or request the submission of personal account statements on a regular basis to monitor for unauthorised trades (on top of / as a control to the maintenance of the securities register).