Regards
Gamble wisely

The relationship between remisiers and their stockbroking company were originally based on loose arrangements which varied substantially, both within the industry at large and also within each firm. As the Malaysian and Singaporean stock markets evolved, the respective regulatory bodies implemented the introduction of standard remisiers' agreements governing the relationship between all remisiers and member companies in the stockbroking industry (under these standard agreements, the remisier is regarded as an agent of the stockbroking company to trade in securities in the name of the company. This relationship was not made explicit in the previous arrangements between remisiers and stockbrokers). In regulatory terms, both remisiers and dealer’s representatives are covered by the same licence (a dealer’s representative’s licence) to enable them to interact with clients and trade shares.

The remisier is responsible for any losses which may be incurred by the stockbroking company arising from any securities transaction dealt through him or her. Each remisier has to post a deposit with the stockbroking company to cover clients’ losses in the event of default; this security deposit is segregated from other assets that are kept by the stockbroking company on behalf of the clients. The stockbroking company is required to take all relevant and reasonable action against clients for the recovery of indebtedness which should be reimbursed to the remisier in the event that the remisier's security deposit has been utilised towards the satisfaction of indebtedness.

This message was edited by Ah Lek Ferguson on 02-Nov-2012 @ 7:35 PM