Statute Details
- Title: Securities and Futures (Investor Compensation Scheme) Order 2010
- Act Code: SFA2001-S447-2010
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Securities and Futures Act (Cap. 289)
- Commencement: 31 August 2010
- Current Version Status: Current version as at 27 March 2026
- Key Provisions (from extract):
- Section 1: Citation and commencement
- Section 2: Fidelity fund of ICE Futures Singapore Pte. Ltd.
- Notable Amendment: Amended by S 297/2014 with effect from 22 April 2014 (as reflected in the extract)
- Legislative Instrument Reference: SL 447/2010
What Is This Legislation About?
The Securities and Futures (Investor Compensation Scheme) Order 2010 (“Investor Compensation Scheme Order”) is a Singapore subsidiary legislation made under the Securities and Futures Act (“SFA”). In plain terms, it is an enabling instrument that supports an investor protection mechanism by specifying the required level of a “fidelity fund” for a particular market operator: ICE Futures Singapore Pte. Ltd.
The investor compensation scheme framework in the SFA is designed to protect investors and market participants against certain losses that may arise from the failure or dishonesty of persons who handle client assets or related funds. While the SFA sets out the overall statutory architecture, this Order focuses on a specific component: the minimum amount that the relevant entity must maintain in its fidelity fund for the purposes of the scheme.
Practically, the Order matters because it sets a concrete financial threshold—not less than S$2 million—which affects compliance planning, governance, and risk management for ICE Futures Singapore Pte. Ltd. It also provides regulators, counterparties, and legal advisers with a clear benchmark when assessing whether the investor compensation scheme requirements are being met.
What Are the Key Provisions?
Section 1: Citation and commencement is a standard legislative provision. It confirms that the instrument may be cited as the “Securities and Futures (Investor Compensation Scheme) Order 2010” and that it came into operation on 31 August 2010. For practitioners, the commencement date is important when determining which version of the regulatory requirement applies to events occurring before and after that date.
Section 2: Fidelity fund of ICE Futures Singapore Pte. Ltd. is the substantive provision in the extract. It is drafted for the purposes of section 181(b) of the SFA. The Order provides that the fidelity fund of ICE Futures Singapore Pte. Ltd. “shall consist of an amount of not less than $2 million.” This is the minimum funding level mandated by the Order.
From a legal compliance perspective, the phrase “shall consist of” indicates that the fidelity fund must be maintained at or above the specified minimum. The requirement is not merely aspirational; it is a statutory minimum that the regulated entity must satisfy to remain compliant with the investor compensation scheme framework. Where a fidelity fund is underfunded, the entity may face regulatory action and potential consequences under the broader SFA regime (including supervisory directions, enforcement proceedings, or other remedial measures, depending on how the SFA is applied in practice).
The extract also shows that the provision was amended by S 297/2014 with effect from 22 April 2014. Although the extract does not show the earlier amount, the presence of an amendment indicates that the minimum fidelity fund level can be revised by subsidiary legislation. For counsel advising on historical compliance, it is therefore essential to confirm the applicable version at the relevant time. For example, if an incident occurred between 31 August 2010 and 22 April 2014, the fidelity fund requirement would be assessed against the then-current minimum; after 22 April 2014, the minimum would be assessed against the amended requirement reflected in the current text.
How Is This Legislation Structured?
The Investor Compensation Scheme Order is structured as a short subsidiary instrument with a limited number of sections. Based on the extract, it contains:
Section 1 (Citation and commencement): establishes the name of the Order and the date it came into force.
Section 2 (Fidelity fund of ICE Futures Singapore Pte. Ltd.): sets the minimum fidelity fund amount required for the purposes of section 181(b) of the SFA.
Although the extract does not list additional parts or sections, the Order’s brevity is consistent with subsidiary legislation that performs a targeted function—here, specifying a financial threshold for a particular regulated entity within the broader investor compensation scheme framework.
Who Does This Legislation Apply To?
On its face, the Order applies specifically to ICE Futures Singapore Pte. Ltd. It requires that the company’s fidelity fund, for the purposes of section 181(b) of the SFA, must be maintained at a minimum level of not less than S$2 million.
While the Order is entity-specific, its legal effect is embedded in the wider SFA investor compensation scheme. Therefore, its practical impact extends beyond the regulated entity to stakeholders who rely on the scheme’s integrity—such as investors, clearing and trading participants, and legal advisers assessing counterparty risk and regulatory compliance. However, the direct statutory obligation to maintain the fidelity fund at the specified minimum is imposed on ICE Futures Singapore Pte. Ltd.
Why Is This Legislation Important?
This Order is important because it translates an investor protection policy into a measurable regulatory requirement. Investor compensation schemes are only as credible as the financial resources backing them. By mandating a minimum fidelity fund amount, the Order helps ensure that there is a baseline pool of funds available within the scheme framework, thereby strengthening confidence in market integrity and investor protection.
For practitioners, the Order is also significant because it demonstrates how the SFA delegates specific details to subsidiary legislation. The SFA provides the enabling authority (here, section 181(b)), while the Order specifies the minimum fidelity fund level for a designated entity. This structure is common in Singapore financial regulation: the primary Act sets the policy and legal architecture, and subsidiary instruments refine operational requirements.
In day-to-day legal work, the Order affects compliance reviews, regulatory reporting, and due diligence. For example, when advising ICE Futures Singapore Pte. Ltd. (or counterparties assessing the entity), counsel will typically consider whether the fidelity fund is properly constituted and maintained at the required minimum, and whether any changes to the minimum amount have been implemented within the required timeframe. The 2014 amendment underscores that these requirements may evolve, so ongoing monitoring of legislative updates is essential.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular section 181(b) (authorising the making of this Order)
- Futures Act — referenced in the provided metadata as related legislation (contextual market regulation)
Source Documents
This article provides an overview of the Securities and Futures (Investor Compensation Scheme) Order 2010 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.