(1) An advocate and solicitor is prohibited from placing clients’ monies in Repo accounts unless specific written instructions are obtained from clients to do so, and the advocate and solicitor has discharged his/her professional duty by explaining to clients the possibility that capital sums placed in such transactions may be reduced as a result of the break funding costs arising from premature withdrawals of clients’ monies from Repo accounts.
(2) As defined in Bank Negara Malaysia’s policy document on repurchase agreement transactions dated 12 November 2019, Repo means “a transaction involving a sale of Repo Securities and a simultaneous agreement to repurchase the equivalent securities on a future date at the original price plus a Repo Rate. Repo shall include both Repo and Reverse Repo, Cross Currency Repo and, unless otherwise mentioned, covers both Classic Repo and Sell/Buy-Back transactions regardless whether the security is delivered-out or held-in-custody”.
(3) For purposes of this Ruling, the Solicitors’ Accounts (Deposit Interest) Rules 1990 shall apply.