https://sso.agc.gov.sg/Act/SFA2001
The Securities and Futures Act (“SFA”) is a broad-ranging statute which governs Singapore’s capital markets and financial investments sector. The SFA puts in place rules and regulations concerning, inter alia, markets, market operators, clearing facilities, intermediaries and representatives. The scope of the SFA includes the following:
(a) Part 2: Markets
(b) Part 2A: Trade Repositories
(c) Part 3: Clearing Facilities
(d) Part 3AA: Central Depository System
(e) Part 3A: Approved Holding Companies
(f) Part 4: Holders of Capital Markets Services Licence and Representatives
(g) Part 6A Reporting of Derivatives Contracts
(h) Part 6B: Clearing of Derivatives Contracts
(i) Part 7: Disclosure of Interests
(j) Part 8: Securities Industry Council and Take-over Offers
(k) Part 9: Supervision and Investigation
(l) Part 10: Assistance to Foreign Regulatory Authorities
(m) Part 11: Investor Compensation Scheme
(n) Part 12: Market Conduct
(o) Part 13: Offers of Investments
Part 4 of the SFA establishes a Capital Markets Services License (CMSL) regime. Subject to certain licensing exemptions, persons who wish to carry out regulated activities must be holders of a CMSL. Activities which are regulated and require licensing under the SFA include the following:
(a) Dealing in securities;
(b) Trading in futures contracts;
(c) Leveraged foreign exchange trading;
(d) Advising on corporate finance;
(e) Fund management;
(f) Real estate investment trust management;
(g) Securities financing; and
(h) Providing custodial services for securities.
Part 12 of the SFA addresses prohibited market conduct including, inter alia, false trading and market rigging, market manipulation, and insider trading.
Part 13 of the SFA governs the offering of financial products including shares and debentures, business trusts, collective investment schemes.