Bank of Singapore has been reprimanded for allowing an employee to deal in securities from 1 to 18 April 2011 without holding the status of an appointed representative.

On 7 June this year, the Monetary Authority of Singapore admonished the bank for contravening a section of the Securities and Futures Act. The section states that a principal “shall not permit any individual to carry on business in respect of any regulated activity on its behalf unless, amongst others, the individual is an appointed representative, provisional representative or temporary representative in respect of that type of regulated activity”.

The regulator said in a statement this week that BOS “contravened section 99B(3)(a) of the SFA as it allowed one employee, who was not an appointed representative, provisional representative or temporary representative under the SFA, to conduct the regulated activity of dealing in securities from 1 April 2011 to 18 April 2011”.

“All financial institutions should have robust systems and controls to ensure that they do not permit any individual to conduct any type of regulated activity under the SFA on their behalf unless the individual is an appointed, provisional or temporary representative in respect of that type of regulated activity or financial advisory service,” the regulator said.

This publication was in communication with BOS about the matter but had not received a comment at the time of going to press.