Singapore Exchange Regulation (SGX RegCo) has launched a public consultation on proposed rule amendments to encourage the broader use of broker custody accounts. If implemented, the changes will bring the country in line with global practices.
The rule amendments will focus on three areas:
• Enabling the use of omnibus broker custody accounts
• Requiring those who operate broker custody accounts to facilitate clients’ exercise of shareholder rights
• Enhancing the regulatory framework for depository agents to maintain robust regulatory oversight
Consolidated benefits
Local investors can hold SGX securities either in broker custody accounts or in individually-segregated direct accounts with The Central Depository (CDP), Singapore’s CSD. Currently, about a third are the former while two-thirds are the latter.
Commonly, retail investors who hold direct accounts in CDP for SGX-listed stocks also maintain broker custody accounts on an omnibus basis for their foreign-listed shares.
SGX RegCo explains in a press release, “If investors adopt the same broker custody model for both their SGX-listed and foreign-listed securities, they can view and manage all their holdings together through the same broker. Brokers will also be able to offer investors more value-added services, such as fractional trading, portfolio management, robo-investing, as well as other innovative products and services.”
Competitive advantage
An omnibus broker custody model is also expected to “encourage greater participation by internationally active asset managers”, thus increasing the country’s competitiveness as a trading and investment venue. Currently, these asset managers are using omnibus structures in other major markets, but must separately accommodate individually-segregated accounts when operating in Singapore.
The consultation is open until 27 March 2026.
