Regulated Investment Services

The commission is responsible for overseeing and regulating the following services (shown in the table below). The first task is therefore to decide which services a license should be applied for.

 

Number

Investment Service

Description

1 Reception and transmission of orders in relation to one or more financial instruments. Reception and transmission of client orders, without the need to obtain information regarding the knowledge and experience of the client in order to assess the appropriateness of the service or the instrument for the client.
2 Execution of orders on behalf of clients. Acting to conclude agreements to buy or sell one or more financial instruments on behalf of clients.
3 Dealing on own account. Trading against proprietary capital resulting in the conclusion of transactions in one or more financial instruments. The terms “trade on own account” or “trading on own account” have similar interpretation.
4 Portfolio management. Managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more financial instruments.
5 Investment advice.

The provision of personal recommendation to a client, either after his request, or on the initiative of the CIF, in relation to one or more transactions related to financial instruments.

(a) Is made to a person in his capacity as a client or potential client, or in his capacity as an agent of a client or a potential client, and (b) is presented as suitable for the client, or is based on a consideration of the circumstances of the client (i) to buy, sell, subscribe for, exchange, redeem, hold or underwrite a particular financial instrument.

But does include a recommendation that is issued exclusively through distribution channels or to the public.

6 Underwriting of financial instruments and/or placing of financial instruments on a firm committed basis. Underwriting refers to the process whereby an investment bank raises investment capital from investors on behalf of corporations and/or governments that are issuing securities (either Equity or Fixed Income). It assumes that the underwriter has taken on the risk of distributing the securities. Should he be unable to find enough investors, he will have to hold some securities for himself.
7 Placing of financial instruments without a firm commitment basis.  
8 Operation of Multilateral Trading Facility. A multilateral system operated by a CIF or market operator, which brings together or facilities the bringing together of multiple third-party buying and selling interest in financial instruments – in the system and in accordance with its non-dictionary rules.

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  Resources:

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