Section 62

This Division applies to and in relation to an investment adviser who carries on the business of managing a portfolio of securities for a client for investment purposes whether on a discretionary authority granted by the client or otherwise.

Nothing in subsection (1) shall apply to a corporation which manages a portfolio of securities for or on behalf of any of its related corporations as defined in section 6 of the Companies Act [Cap. 50], provided that the second-mentioned corporation’s securities being managed by the first-mentioned corporation are not securities held on trust or on behalf of or beneficially belonging to any other person, or as a result of any investment contract entered by the second-mentioned corporation.

For the purpose of this section, “investment contract” has the same meaning as that assigned to it in section 107 of the Companies Act.

The Authority may, if it thinks it is consistent with the public interest, exempt an investment adviser from having to comply wholly or partly with this Division.