Clause 51

by deleting subsections (1), (2) and (3) and substituting the following subsections:“(1) Subject to subsection (4), the holder of a capital markets services licence to deal in securities shall not, as principal, enter into any transaction of sale or purchase of any securities with any customer who is not the holder of a capital markets services licence to deal in securities unless the holder first informs the customer that the holder is acting in the transaction as principal and not as agent.(2) The holder of a capital markets services licence to deal in securities which enters into a transaction of sale or purchase of securities, as principal, with a customer who is not the holder of a capital markets services licence to deal in securities shall state in the contract note that the holder is acting in the transaction as principal and not as agent.”; and

by inserting, immediately after subsection (8), the following subsection:“(9) For the purposes of this section —

a reference to the holder of a capital markets services licence to deal in securities entering into a transaction of sale or purchase of securities as principal includes a reference to the holder entering into such a transaction on behalf of —

a person associated with or connected to the holder; (ii)a corporation in which the holder has a controlling interest; or

a corporation in which the holder’s interest and the interests of the directors of the holder together constitute a controlling interest; and

a reference to securities is a reference to securities which are permitted to be traded on the securities market of —

a securities exchange;

an overseas securities exchange; or

a recognised trading system provider.”.