SECURITIES INDUSTRY ACT 1980 No. 66, 1980 - SECT 71 Accounts to be kept by dealers

SECURITIES INDUSTRY ACT 1980 No. 66, 1980 - SECT 71

71. (1) A dealer shall-

   (a)  keep such accounting records as correctly record and explain the
        transactions and financial position of the business of dealing in
        securities carried on by him;

   (b)  keep his accounting records in such a manner as will enable true and
        fair profit and loss accounts and balance sheets to be prepared from
        time to time; and

   (c)  keep his accounting records in such a manner as will enable profit and
        loss accounts and balance sheets of the business of dealing in
        securities carried on by him to be conveniently and properly audited.

Penalty: $2,500 or imprisonment for 6 months, or both.

(2) A dealer shall be deemed not to have complied with sub-section (1) in
relation to records unless those records-

   (a)  are kept in writing in the English language or in such a manner as
        will enable them to be readily accessible and readily converted into
        writing in the English language;

   (b)  are kept in sufficient detail to show particulars of-

        (i)    all moneys received or paid by the dealer, including moneys
               paid to, or disbursed from, a trust account;

        (ii)   all purchases and sales of securities made by the dealer, the
               charges and credits arising from them, and the names of the
               buyer and seller, respectively, of each of those securities;

        (iii)  all income received from commissions, interest, and other
               sources, and all expenses, commissions, and interest paid, by
               the dealer;

        (iv)   all the assets and liabilities (including contingent
               liabilities) of the dealer;

        (v)    all securities that are the property of the dealer, showing by
               whom the securities, or the documents of title to the
               securities, are held and, where they are held by some other
               person, whether or not they are held as security against loans
               or advances;

        (vi)   all securities that are not the property of the dealer and for
               which the dealer or any nominee controlled by the dealer is
               accountable, showing by whom, and for whom, the securities or
               the documents of title to the securities are held and the
               extent to which they are either held for safe custody or
               deposited with a third party as security for loans or advances
               made to the dealer;

        (vii)  all purchases and sales of options made by the dealer and all
               fees (being option moneys) arising from them;

        (viii) all arbitrage transactions entered into by the dealer; and

        (ix)   all underwriting transactions entered into by the dealer;

   (c)  are kept in sufficient detail to show separately particulars of every
        transaction by the dealer;

   (d)  specify the day on which or the period during which each transaction
        by the dealer took place; and

   (e)  contain copies of acknowledgments of the receipt of securities or of
        documents of title to securities received by the dealer from clients
        for sale or safe custody clearly showing the name or names in which
        the particular securities are registered.

(3) Without affecting the operation of sub-section (2), a dealer shall keep
records in sufficient detail to show separately particulars of all
transactions by the dealer with, or for the account of-

   (a)  clients of the dealer, excluding, where the dealer carries on business
        in partnership, the partners of the firm;

   (b)  the dealer himself, or, where the dealer carries on business in
        partnership, the partners of the firm;

   (c)  other dealers carrying on business in the Territory;

   (d)  dealers outside the Territory; and

   (e)  employees of the dealer.

(4) An entry in the accounting and other records of a dealer required to be
kept in accordance with this section, and any matter recorded by a stock
exchange in relation to a member pursuant to sub-section 136 (3), shall be
deemed to have been made by, or with the authority of, the dealer or member.

(5) Where a record required by this section to be kept is not kept in writing
in the English language, the dealer shall, if required to convert the record
into writing in the English language by a person who is entitled to examine
the record, comply with the requirement within a reasonable time.

(6) Notwithstanding any other provision of this section, a dealer shall not be
deemed to have failed to keep a record referred to in sub-section (1) by
reason only that the record is kept as a part of, or in conjunction with, the
records relating to any business other than dealing in securities that is
carried on by him.

(7) If accounting or other records are kept by a dealer at a place outside the
Territory, the dealer shall cause to be sent to and kept at a place in the
Territory such particulars with respect to the business dealt with in those
records as will enable true and fair profit and loss accounts and balance
sheets to be prepared.