Regulatory Alerts2021-03-23
New Rule and Sundry Amendments to the Rules and Regulations of the Commission
This document introduces a new regulatory framework for warehousing and collateral management, mandating the registration of Collateral Management Companies (CMCs) and specifying strict requirements for warehouse certification, electronic warehouse receipt issuance, and record maintenance. It reinstates Rule 19, which mandates that all Capital Market Operators file for annual registration renewal by January 31st, accompanied by specific compliance evidence including fidelity bond proof and current minimum capital requirements. Additionally, the document updates the quarterly return forms (SEC Form QR6) for Unit Trust Schemes to enhance reporting on asset allocation, management fees, and investor holdings.
New Rule and Sundry Amendments to the Rules and Regulations of the Commission
LEGEND: Additions are underlined; Deletions are struck through.
New Rule
A. Rule on Warehousing and Collateral Management
Major Amendment
B. Amendment to Rule 19- Renewal of Registration (Reinstatement of Rule 19)
Sundry Amendment
C. Amendment to Quarterly Returns Forms for Unit Trust Schemes
NEW RULE
A. RULE ON WAREHOUSING AND COLLATERAL MANAGEMENT
1) DEFINITION OF TERMS
In this Rule, unless the context otherwise requires:
“Assayer” is an entity (person/institution) recognized by the relevant professional body that certifies and grades the commodities that are delivered in registered warehouses.
“Collateral Management Company” or “CMC” means a Company registered by the Commission to provide collateral management services;
“Collateral Management Services” means the activity of managing commodities as collateral, including but not limited to the following: I. Providing enabling arrangements for collateral commodity financing; II. Issuance of credible Warehouse receipts and other necessary arrangements for agricultural commodity financing; III. provision of quality warehousing services involving storage and preservation of commodities; and IV. Stock audit, evaluation and verification services.
[... continued for all sections of the document ...]
MAJOR AMENDMENT
B. RENEWAL OF REGISTRATION (REINSTATEMENT OF RULE 19)
(1) (a) All Capital Market Operators shall file applications for renewal of their registration every year. (b) Every Capital Market Operator shall renew its registration by filing the appropriate SEC form as contained in the Schedules to these Rules and Regulations.
(2) Every Capital Market Operator shall file an application for renewal of registration not later than 31st January of every year.
[... continued for all sections of the document ...]