A discretionary FSP may establish a nominee company with the main object of being the registered holder and custodian of the investments of clients, subject to such conditions and restrictions as may be imposed by the Registrar under section 8(4) of the Act, and the applicable provisions of regulations made under the Act, and enter into a written agreement with the company, which provides for termination of the agreement by either party on written notice of not less than 90 days. Where a discretionary FSP elects not to establish such a nominee company, an appropriate existing nominee company, approved by the Registrar, must be utilised by the discretionary FSP.

[Section 8 of Part II of Chapter II substituted by section 5 of Notice 3294 of 2003, dated 14 November 2003]