Regulatory Alerts2018-10-05
Added
Notice SFA 04-N15 on Risk Fact Sheet for Contracts for Differences
The Singapore Financial Regulatory Authority issued Notice SFA 04-N15 to mandate that CMS licence holders and exempt financial institutions provide a standardized Risk Fact Sheet to customers before opening Contracts for Differences trading accounts. The document requires firms to obtain a signed customer acknowledgement confirming understanding of the risks, particularly the potential to lose substantially more than the initial margin, and to maintain these records for at least five years. Existing CFD dealers were granted a transition period until October 2019 to comply with these new disclosure and formatting requirements for pre-existing accounts.
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